Capital Markets
From The Report: Malaysia 2012
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The local bourse has seen a bonanza of major offerings in 2012, from the $3.1bn IPO of plantations owner Felda Global, to the dual Singapore-Malaysia listing of hospital operator IHH Healthcare. The corporate bond market is also on a record-setting pace, thanks in large part to a string of sukuk sales that included a $9.9bn debt offering from tollway company PLUS. Meanwhile a wave of consolidation, which has already transformed Malaysia’s banking industry, is now hitting brokerages, with at least three major mergers or acquisitions occurring in 2012. Developments on the horizon include the 2016 opening of the Tun Razak Exchange, which the government hopes will become a hub for Malaysian and international financial institutions.
This chapter includes an interview with Tajudin Atan, CEO, Bursa Malaysia.
Articles from this Chapter
International favourite: A stable and growing market attracts local and foreign investors
Malaysia’s Wall Street: Developing a new financial district in Kuala LumpurOBGplus
It may be the initial public offering capital of Southeast Asia and the global hub for Islamic finance, but Malaysia as of yet lacks a clearly defined centre for its banking and capital markets activities, a Wall Street or a City of London equivalent. The various components of the financial industry – the major institutions, the service providers and the vendors – are scattered throughout Kuala Lumpur. That is set to change by 2016 when the first phase of the Tun Razak Exchange (TRX) is…
OBG talks to Tajuddin Atan, CEO, Bursa MalaysiaOBGplus
Interview: Tajuddin Atan What plans are there to attract more global investor funds and increase the overall investor base? TAJUDDIN ATAN : This region is viewed as the world’s leading growth market. That provides great potential for us to attract funds as Bursa Malaysia embraces our role as a primary driver of the ASEAN capital market and provide growth opportunities for our listed companies. Malaysia’s transformation towards a high-income nation has created fertile ground for our listed companies…
Keeping track: New indices are introduced to the local bourseOBGplus
Bursa Malaysia and the FTSE Group have been working together since 2006 to develop, manage and maintain real-time indices covering the local equity markets, both for the Bursa main board and the ACE secondary board. In 2009, Malaysia's benchmark stock index, which had been up to that point the Kuala Lumpur Composite Index (KLCI), became the FTSE Bursa Malaysia KLCI. A wide range of indices are now offered by FTSE Bursa Malaysia, including tradable indices, such as the FTSE Bursa Malaysia Mid…
A different sort of plan: The government identifies broad goals and trends in capital marketsOBGplus
The Capital Market Master Plan 2001-10 (CMP1) was a huge success. Of the 152 recommendations made, a full 95% were achieved. The second Capital Market Master Plan (CMP2), announced in April 2011, is not going to match that performance. This is not because Malaysia is not motivated to implement CMP2 or because CMP2 sets the bar too high. It is because unlike CMP1, CMP2 does not make specific recommendations. The first plan was a to-do list. The second is an expression of trends and themes. DIFFERENT…
AirAsia: AviationOBGplus
THE COMPANY: AirAsia is one of the largest low-cost carriers in Asia, with an extensive network of around 150 routes. Within 10 years of operations, AirAsia has expanded its fleet from just two aircraft to 107 at present, and has carried more than 140m passengers. The company aspires to become the leading airline for destinations in ASEAN countries, serving a market of 3bn people. Already, AirAsia has built up established operations based in Malaysia, Indonesia, Thailand and the Philippines, servicing a network that stretches across ASEAN and also includes China, India, Sri Lanka and Australia. This is further complemented by a 16% stake in…
Sime Darby: PlantationsOBGplus
THE COMPANY: Sime Darby is a diversified multinational involved in numerous sectors. It was set up in 2007 to facilitate the merger of Golden Hope, Kumpulan Guthrie and Sime Darby, and is now the second-largest company by market cap listed on Bursa Malaysia. Sime Darby Plantation is one of the world’s largest crude palm oil (CPO) producers, with 519,440 ha of planted land bank in Malaysia and Indonesia producing 2.5m tonnes of CPO per year. In 2010 Sime started developing its new 220,000-ha concession in Liberia. In addition to oil palm, Sime also has 7880 ha of rubber. As a vertically integrated palm oil company, Sime has 13 downstream…
Telekom Malaysia: TelecommunicationsOBGplus
THE COMPANY: Telekom Malaysia (TM) is the largest integrated communications solutions provider in Malaysia. TM’s core businesses are providing communication services and solutions in internet, multimedia, and data and fixed line. Khazanah is the major shareholder, with a 28% stake, while the government-linked investment companies Employee Provident Fund and Permodalan Nasional hold 13% and 10%, respectively. Since signing a private-public partnership (PPP) with the government to roll out high-speed broadband (HSBB) in September of 2008, TM has seen an encouraging subscription rate for its HSBB services. The PPP stipulates that TM will offer…
Malayan Banking: BankingOBGplus
THE COMPANY: Malayan Banking (Maybank) commenced operations in 1960, and was listed on the Kuala Lumpur Stock Exchange, now Bursa Malaysia, in February 1962. Today Maybank is the largest company by market capitalisation on the bourse. It is also Malaysia’s biggest banking institution, with total assets of some RM453bn ($146.13bn), as of year-end 2011, 2200 offices in 19 countries and 22m customers. In terms of services, Maybank’s offerings range from commercial banking, investment banking, insurance, stockbroking, offshore banking, Islamic banking and asset management. Domestically, Maybank’s commercial and Islamic banking operations…
IHH Healthcare: Health careOBGplus
THE COMPANY: With a total network of 30 hospitals and more than 4800 beds spanning eight countries, IHH Healthcare (IHH) is the second-largest private health care service provider in the world. IHH’s core operations are located in three main markets: Singapore, Malaysia and Turkey. Its wholly owned subsidiary Parkway is currently the largest private health care service provider in Singapore, with a network of four hospitals and 910 licensed beds. Equipped with advance medical equipment and more than 1200 specialist doctors, Parkway offers mainly high-margin tertiary and quaternary health care services and recently opened its new 333-bed…
SapuraKencana Petroleum: Oil and gasOBGplus
THE COMPANY: With the completion of the merger between SapuraCrest and Kencana, and the listing of the merged entity on the main market of Bursa Malaysia in May 2012, SapuraKencana Petroleum (SKP) has become the largest Malaysian oil and gas (O&G) service provider that is not owned by Petronas, after Bumi Armada. As a result of the merger, SKP is now an integrated O&G service provider, covering 90% of the oilfield services value chain, including drilling, engineering, procurement and construction, transportation and installation, and marine services. SKP currently lacks design capability, the remaining 10% of the value chain, although…
