Welcome Remarks By Ybhg Tan Sri Azman Hashim
Chairman, Malaysian Investment Banking Association
At The 35th Malaysian Investment Banking Association Annual Dinner
At The Grand Ballroom,
Hilton, Kuala Lumpur
Friday, 31st October 2014
YBhg Datuk Ranjit Ajit Singh,
Chairman, Securities Commission Malaysia
YB Mr Donald Jaganathan,
Assistant Governor, Bank Negara Malaysia
& Mrs Shamila
Senior Officials of Securities Commission,
Economic Planning Unit (EPU)
Council Members of MIBA,
Chairmen and CEOs of Investment Banks,
Staff of Investment Banks,
Ladies and Gentlemen,
Assalamualaikum and a very good evening to everyone.
On behalf of the Malaysian Investment Banking Association (MIBA), it gives me great pleasure to welcome our Guest-of-Honour, YBhg Datuk Ranjit Ajit Singh, Chairman of Securities Commission Malaysia to tonight's dinner. I would also like to welcome all our distinguished guests from the Securities Commission, Bank Negara Malaysia, Bursa Malaysia, the Economic Planning Unit (EPU), the various Government Ministries and agencies, financial institutions, associations and investment institutions.
I am also pleased to extend a warm welcome to all members of the Association and wish to thank everyone for their invaluable support, contribution and participation in making the Inter Investment Bank Games and this Annual Dinner a success.
Tonight's occasion is a celebration of our 35th Annual Dinner in conjunction with the conclusion of MIBA Games 2014. The MIBA Games is an annual affair held to promote friendly competition, sportsmanship and fellowship among members of the investment banks.
As Chairman of MIBA, I would like to say thank you to all the sportsmen and sportswomen and members who have participated and contributed to the success of this year's Games. Let me also extend my congratulations to all winners, particularly AmInvestment Bank Berhad for emerging as overall Champion, CIMB Investment Bank Berhad as the first runner-up and Maybank Investment Bank Berhad as the second runner-up.
I am very happy to note that member investment banks will be putting up a show for us tonight. The participating banks are competing in a talent showcase with the theme 'Fantasy'. I must say that our investment bankers have many hidden talents as the level of performances over the past years had been absolutely wonderful and top-notch. I am sure that tonight will be no different and we all look forward to the lively performances.
Ladies and Gentlemen,
Given the improving outlook of the global economy this year, the Malaysian economy registered a stronger growth of 6.4% in the second quarter of 2014. The Malaysian financial markets have been resilient throughout and well supported by a sound banking system and strong macroeconomic fundamentals.
Fund raising activities remained strong, further supporting the expansion of economic activities under the Tenth Malaysia Plan and the various national transformation programmes. Total funds raised in the capital market in the first seven months of 2014 amounted to RM65.8 billion, almost double the amount that was raised in the corresponding period last year (2013: RM33.6 billion).
The Malaysian bond and sukuk markets have become the largest source of capital market financing, and continue to play an important role in funding oil and gas, energy and infrastructure developments domestically and regionally. Our bond market size has reached RM1.08 trillion as at end-August 2014, making it the third largest in Asia. We continue to maintain our position as the largest sukuk issuer in the world accounting for USD161 billion of the global sukuk outstanding. Bursa Malaysia also retained its leadership position as the premier sukuk listing destination for the fifth consecutive year.
In line with the Government’s pro-business initiatives, Malaysia's competitiveness has improved further as evidenced in the World Bank’s Doing Business 2014 Report where Malaysia's ranking improved to 6th position from 12th position in 2013. New Revised Formula 20 --- 18. In the 2014 Foreign Direct Investment Confidence Index by AT Kearney, Malaysia moved up to 15th from 25th position. These encouraging performances indicate that Malaysia is moving up the value chain and is on track towards achieving a high income economy status.
The Malaysian economy has benefited from various initiatives and reforms taken over the years to enhance its resilience and competitiveness. The Government and the financial regulators continue to provide a business-friendly environment to attract investment and enable business activities to thrive.
Several key measures were undertaken this year to further enhance the capital market largely supported by the regulators, in particular the Securities Commission:
Bursa Malaysia had in April launched the 'Bursa Marketplace', an online platform which aims to provide investors with market information and insights that will help boost retail participation in the stock exchange.
The Best Practice Guide on Independent Advice Letters was introduced by Bursa in July in order to provide guidance that seeks to improve the quality of advice given as well as on standard of disclosure.
The recent launch of the Securities Commission's Sustainable and Responsible Investment Sukuk framework is reflective of Malaysia’s innovative efforts to take Shariah-compliant investments to the next level. This is also in line with the rising trend of green bonds and social-impact bonds that have been introduced globally to promote socially responsible financing and investing.
In September, the Securities Commission organised the Investor Education Weekend 2014, a collaboration with the industry including members of MIBA, to educate and raise the level of financial and investment literacy among retail investors in Malaysia. The roadshow was a programme under the InvestSmart initiative launched by the SC in June to provide the public with greater access to information on the capital market.
Further, the flexibility accorded to the tradability of unrated bonds and the removal of the mandatory credit rating requirement in the bond and sukuk markets effective 1 January 2017, will help in deepening the bond market. This liberalisation measure will make fund raising on par with regional peers and enable the Malaysian bond market to become a more cost-effective and attractive long-term financing platform.
Progress on the ASEAN financial sector integration continued to take shape and efforts are being intensified to support the realization of the ASEAN Economic Community 2015 which Malaysia will assume its Chairmanship next year. On this note, I would like to congratulate the Securities Commission for recently being elected as chair of the ASEAN Capital Markets Forum (ACMF) in September.
Ladies and Gentlemen,
We applaud the Government and regulators' efforts towards addressing not only the short-term weaknesses but also the long-term national competitiveness. We thank the Government and regulators for providing the necessary infrastructure comparable to advanced markets and creating a conducive environment for the intermediaries such as investment banks to work alongside.
Whilst we have made significant progress in terms of economic performance, investment and international ranking in competitiveness, there are still challenges that need to be addressed. However, we are confident that with the Government's continuous effort in providing assistance and guidance to market participants, we in the banking sector, in particular the investment banking sector, will be able to rise up to the challenge and play our part effectively, to ensure that our economy will continue to grow and develop at a faster pace.
MIBA is continually taking pro-active steps to upgrade capabilities of the investment banking participants through continued education and training. MIBA has been and will continue to remain active in organising developmental and training programmes to keep its members informed of current market developments as well as to enhance knowledge, skills and competency of investment bankers, as we move towards a knowledge-based and innovation driven economy.
MIBA is grateful to the Government and its agencies for their continuous support and assistance. In this regard, let me extend our thanks and appreciation to all the officials of Ministry of Finance, Bank Negara Malaysia, Securities Commission, Bursa Malaysia, Economic Planning Unit and other relevant regulatory authorities. MIBA has benefited greatly from the frequent dialogues, exchange of views and proposals with the regulatory authorities and agencies and we look forward to more of such interactions in the coming year. On behalf of MIBA, I would especially thank YBhg Datuk Ranjit and the Securities Commission for the excellent relationship and support that MIBA receives as also evidenced by YBhg Datuk Ranjit’s willingness to be our Guest of Honour again this year.
By the way MIBA also has annual golf matches with our regulators although I have yet to see YBhg Datuk Ranjit representing the Securities Commission! He is still brushing up on his golf game.
Ladies and Gentlemen,
Once again, let me convey my thanks to YBhg Datuk Ranjit, all our guests and members of the Association for taking time to attend our Annual Dinner. Your presence at this evening's proceedings is invaluable.
To all the performers, I commend you for making the effort and taking the time to practice and participate in the talent competition. I say thank you, for your contribution and commitment to be a part of tonight's entertainment.
To the prize winners, congratulations on your well deserved achievements. All your hard work, commitment and practice have paid off.
Let me also extend my appreciation to the Secretariat of MIBA for coordinating the MIBA Games 2014 and for organising tonight's event. I would like to thank the Senior Management, Sports President and Team Managers of all MIBA members for the cooperation and contribution in ensuring the success of the Games and tonight's Dinner.
To everyone here tonight, I wish you all the best and hope you will have an enjoyable and entertaining evening.
31 OCTOBER 2014