Bursa boards to be unifiedKUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi yesterday announced a streamlining of Bursa Malaysia's main and second boards, as well as the structure of Mesdaq market.
He said the two boards would be combined into a unified board for more established companies with strong financial track records.
Abdullah, who is also Finance Minister, said the Mesdaq market would be revamped under the proposed streamlining process to allow smaller companies to access the equity market at an earlier stage of their lifecycle.
"The unified board will have uniform listing requirements and comprehensive disclosure based regulations with easy entry and fast removal access.
"For Mesdaq, the listing of emerging companies will be sponsor-driven whereby advisers will play a greater role in bringing listings to the market and maintain on-going supervision by reducing the number of boards and the number of listing requirements," he said in his keynote address at Invest Malaysia 2008.
Abdullah said the move would help catalyse the listing of more high quality companies in the local equities market.
The Government, he said, would be establishing a market-making framework for Bursa Malaysia.
"Market makers can include proprietary traders in commercial and investment banks as well as foreign traders to provide liquidity in the market," he said, adding that the initiative would help price discovery, promote innovation and enhance market liquidity.
"The government will offer incentives such as tax concessions and lower fees to attract financial institutions to act as market makers," he said.
Abdullah also said the government would allow the setting up of a third credit rating agency with foreign strategic partners holding up to 49% equity interest.
"We hope the domestic rating agencies will enhance their performance through better supervision and more competition," he added.
Currently Malaysia has two rating agencies: namely Rating Agency Malaysia Bhd and Malaysia Rating Corp Bhd.
Meanwhile, Abdullah also announced that the government would liberalise the bond market approval framework.
DATUK ZARINAH ANWAR
Chairman
Securities Commission (SC)
SC is still working on the rules and regulations to enable the revamp on Bursa Malaysia's Mesdaq, main and second board structure to be implemented and operational by year-end.
For (the new) Mesdaq, it will not only be for high-tech and high-growth companies, as we want more emerging companies to participate.
DATUK KRISHNAN TAN
Managing Director
IJM Corp Bhd
THE Government's poll losses will not slow down the spending on public works. Awards may peak but jobs may take two to three years to finish.
Many big construction companies already have substantial order books to provide two years of earnings. If there is a delay, it will be in order book enhancement and should not affect earnings in the immediate term.
DATUK LIM HONG THYE
Executive Director
Ann Joo Resources Bhd
THERE must be a good reason for the call to combine the main and second boards as well as revamp the Mesdaq market. Hopefully, this will lead to better efficiency, transparency and more quality stocks listed on Bursa Malaysia.
PUSHPA RAJADURAI
Executive Director
AmInvestment Bank
THE industry has been asking for disclosure-based regulation in line with other jurisdictions. We can now have a common playing field with other countries. It is a step forward.
The disclosures that corporations have to make with regards to initial public offerings (IPOs) must be comprehensive and ensure quality.
Intermediaries must ensure that is in line with Bursa Malaysia's focus on quality, complete disclosure and growth.
It is for companies with track record and need to tap the capital market.
These companies require good branding and investor relations before and after listing, as they will have to convince more investors to buy their shares.
The revamp of Mesdaq is timely and the opening up to sponsors is driven by the market and in line with what is happening in the Alternative Investment Market of the London Stock Exchange (AIM).
Mesdaq companies will have to ensure they have a growing business model and sound management. This is positive for those with a business that can compete with the technology and know-how.
For us, this will be a better year although for now, the overall market plunge has affected sentiment.
There were 40 IPOs done in 2006; 27 in 2007 and this is expected to go back up to 40 or 50 this year.
We are looking at the value chain - plantations, property, oil and gas and corridor developments.
Mergers and acquisitions will continue as people look at market capitalisation, privatisations and foreign interests.
There could be foreign buyouts of local companies.
URL:
http://biz.thestar.com.my/news/story.asp?f...07&sec=business 
Mar 25 2008, 09:24 PM
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