Malaysia is actively pursuing a strategy to synchronise its real economy with the dynamism of its capital market, aiming for inclusive and sustainable economic growth, according to Deputy Finance Minister II, Datuk Seri Amir Hamzah Azizan. Speaking at the 63rd World Federation of Exchanges (WFE) General Assembly and Annual Meeting on Wednesday, he outlined the government's vision for a more equitable distribution of prosperity.
Amir Hamzah highlighted the crucial role of the capital market in driving economic expansion. He emphasised its capacity to provide businesses with essential funding for growth, unlock opportunities across diverse market segments, and ultimately accelerate progress for Malaysians. This alignment, he suggested, is key to unlocking Malaysiaâs full economic potential.
The Deputy Minister presented a positive assessment of Malaysia's current economic performance. The nation has enjoyed robust growth, averaging 5.2% over the first three quarters of the year. This positive trend is mirrored in the performance of Bursa Malaysia, with the benchmark FTSE Bursa Malaysia KLCI exceeding 1,600 points and the total market capitalisation reaching RM2 trillion. Furthermore, a significant 46 new initial public offerings (IPOs) have been launched this year across the Main Market, ACE Market, and LEAP Market, indicating a strong and active market pipeline. This positive momentum is further underscored by the successful transition of 11 companies from the ACE Market to the Main Market, demonstrating a healthy progression within the market structure.
This consistent IPO activity, along with a robust pipeline of growth-ready businesses, fuels Amir Hamzah's optimism regarding Malaysia's long-term market prospects. He believes that this sustained growth will be instrumental in fostering broader economic prosperity.
Beyond the capital markets, Malaysia is strategically leveraging its position within the global landscape. The country has significantly benefited from global supply chain disruptions, notably through its substantial presence in the electrical and electronics (E&E) sector. Accounting for approximately 7% of global E&E trade and 17% of the global semiconductor market, Malaysia is a key player in this vital industry. The government is committed to nurturing a supportive ecosystem to attract and retain multinational corporations, focusing on developing a skilled workforce, strengthening supply chains, and improving logistical infrastructure. A crucial component of this strategy involves government-linked investment companies (GLICs) channelling funds into private markets to bolster the development of these crucial economic ecosystems. This investment, Amir Hamzah argues, is a strategic move to build long-term resilience within the Malaysian economy.
In conclusion, Malaysia's economic strategy centres on a multifaceted approach. By aligning its real economy with a thriving capital market, fostering a supportive environment for multinational corporations, and leveraging its strengths in key sectors like E&E, the government aims to achieve sustainable, inclusive growth and distribute prosperity equitably across society. The positive economic indicators and proactive government policies suggest a strong commitment to realising this ambitious vision.
