KUALA LUMPUR (March 28): Fund raising approved by the Securities Commission rose 54.4% to RM118.90 billion in 2011 from RM77 billion in 2010, with private debt securities (PDS) accounting for the bulk of the fund raising.
The SC said on Wednesday the Malaysian capital continued to grow in 2011, with initial public offers (IPOs) accounting for RM6.6 billion and PDS RM112.3 billion. This was a contrast from 2010 when IPOs accounted for RM13.40 billion and PDS RM63.6 billion.
“This marked increase reflects strong confidence in the fund raising environment and sukuk approvals which had more than doubled to RM78.9 billion from RM38.3 billion the year before,” said the SC.
The approvals included the world's largest corporate sukuk programme of RM23.3 billion by Projek Lebuhraya Usahasama Bhd, under which issuance commenced in January 2012.
“Malaysia remains at the forefront of the sukuk market, accounting for 73% of the total sukuk issued globally,” it said.
The SC explained total funds raised via the PDS market increased by 32.8% to RM71.2 billion in 2011 from RM53.6 billion in 2010.
It added global investors were searching for stable income with higher yields and total foreign investment in PDS increased from RM14.3 billion at end-2010 to RM15.1 billion at end-2011, of which RM10.09 billion was in conventional PDS with the remaining RM5.05 billion in sukuk.
As for the IPOs, the SC approved 14 for the Main Market in 2011. As for the equities market capitalisation, it was RM1.28 trillion at end 2011 while overall average trading activity increased by 31.6% to a daily average of 1.34 billion units from a year ago.
As for the equity market, the SC said total funds raised fell to RM12.6 billion in 2011 from RM32.1 billion the year before in line with a general slowdown in IPO activity worldwide.
The SC, in its comments on the fund management industry, said it managed RM423.6 billion as at Dec 31, up 12.2% from RM377.5 billion in 2010
Unit trust funds constituted the largest share of the Malaysian fund management industry and the aggregate NAV of unit trust funds grew by 9.99% to RM249.5 billion in 2011 (compared to RM226.81 billion in 2010), accounting for 19.42% of Bursa Malaysia’s market capitalisation at the end of 2011.
SC chairman Tan Sri Zarinah Anwar said over the next 10 years, the capital market would have to take on an even bigger role to provide the long-term financing required to sustain domestic growth amid a challenging global environment for growth and jobs, while adapting and remaining resilient to major shifts in the economic and financial landscape.
The SC said on Wednesday the Malaysian capital continued to grow in 2011, with initial public offers (IPOs) accounting for RM6.6 billion and PDS RM112.3 billion. This was a contrast from 2010 when IPOs accounted for RM13.40 billion and PDS RM63.6 billion.
“This marked increase reflects strong confidence in the fund raising environment and sukuk approvals which had more than doubled to RM78.9 billion from RM38.3 billion the year before,” said the SC.
The approvals included the world's largest corporate sukuk programme of RM23.3 billion by Projek Lebuhraya Usahasama Bhd, under which issuance commenced in January 2012.
“Malaysia remains at the forefront of the sukuk market, accounting for 73% of the total sukuk issued globally,” it said.
The SC explained total funds raised via the PDS market increased by 32.8% to RM71.2 billion in 2011 from RM53.6 billion in 2010.
It added global investors were searching for stable income with higher yields and total foreign investment in PDS increased from RM14.3 billion at end-2010 to RM15.1 billion at end-2011, of which RM10.09 billion was in conventional PDS with the remaining RM5.05 billion in sukuk.
As for the IPOs, the SC approved 14 for the Main Market in 2011. As for the equities market capitalisation, it was RM1.28 trillion at end 2011 while overall average trading activity increased by 31.6% to a daily average of 1.34 billion units from a year ago.
As for the equity market, the SC said total funds raised fell to RM12.6 billion in 2011 from RM32.1 billion the year before in line with a general slowdown in IPO activity worldwide.
The SC, in its comments on the fund management industry, said it managed RM423.6 billion as at Dec 31, up 12.2% from RM377.5 billion in 2010
Unit trust funds constituted the largest share of the Malaysian fund management industry and the aggregate NAV of unit trust funds grew by 9.99% to RM249.5 billion in 2011 (compared to RM226.81 billion in 2010), accounting for 19.42% of Bursa Malaysia’s market capitalisation at the end of 2011.
SC chairman Tan Sri Zarinah Anwar said over the next 10 years, the capital market would have to take on an even bigger role to provide the long-term financing required to sustain domestic growth amid a challenging global environment for growth and jobs, while adapting and remaining resilient to major shifts in the economic and financial landscape.
