KUALA LUMPUR: Creating greater market vibrancy and intensifying efforts to leverage the sustainability agenda, as well as Malaysia’s leadership in the Islamic Capital Market were among the key topics discussed at the Securities Commission (SC) Industry Dialogue 2023 (SCID 2023) last week.

The annual industry dialogue was held to discuss and deliberate on key areas to further develop and grow the capital market, following the launch of the Madani Economy by Prime Minister Datuk Seri Anwar Ibrahim on July 27.

According to the SC, SCID 2023 saw 60 capital market industry leaders and senior representatives sharing ideas and proposals as well as highlighting issues and challenges under three broad areas, namely, investment opportunities, funding inclusivity and market reforms in the capital market.

“By continuing to collaborate with various stakeholders, the SC can leverage their expertise to drive the required reforms and improvements towards strengthening the Malaysian capital market’s vibrancy, inclusivity and competitiveness,” SC chairman Datuk Seri Dr Awang Adek Hussin said in a statement, as reported by Bernama.

Participants also discussed the recent capital market measures announced by the prime minister, namely, reducing the current board lot size for trading on Bursa Malaysia to a more affordable level and enabling fractional share trading by investors through stockbrokers.

They also discussed enabling automatic transfer for companies listed on the ACE Market to the Main Market of Bursa Malaysia, subject to meeting certain criteria.

Awang Adek said Bursa Malaysia is looking into reducing the board lot for trading from 100 units to an appropriate level, taking into account the need for the most effective implementation approach, with brokers agreeing to review the current minimum commission to allow for the lowering of board lot size.

He noted that these measures will provide greater stock market accessibility to a wider group of investors, especially retail and younger investors.

“This will also increase trading and liquidity that would benefit both companies and investors and create a more active and dynamic market environment,” he said.

The SC has also agreed to provide securities brokers flexibility to offer fractional trading of shares listed on Bursa Malaysia to enhance retail investors’ access to the stock market.

However, they will need to adhere to a set of broad principles, such as price transparency, said Awang Adek.

Commenting on the automatic transfer of companies listed on the ACE Market to the Main Market of Bursa Malaysia, he said the move would benefit qualified ACE Market companies by providing them with greater visibility and access to a larger pool of investors.

Additionally, the increased number of listed companies with large market capitalisation on the Main Market will offer investors – particularly large as well as foreign investors – a diverse range of investment opportunities in the Malaysian capital market.

He said the criteria and process were currently being reviewed and discussed together with Bursa Malaysia, and further announcements would be made when the framework is finalised.