Kingdom, M’sia team up on capital markets development
Kingdom, M’sia team up on capital markets development
The Cambodian and Malaysian securities regulators are joining hands to facilitate better regulatory, supervisory and enforcement cooperation, as well as to develop both ASEAN nations’ securities markets, while factoring in the “growing globalisation and cross-border activities of regulated entities and persons in both countries”, according to a joint statement.
A memorandum of understanding (MoU) was penned to this effect on February 27 by Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat and Securities Commission Malaysia (SC) chairman Awang Adek Hussin at the SC, the statement noted.
Designed to simplify work related to licensing information and encompassing assistance, supervisory and regulatory provisions for cross-border enforcement, the deal will bolster collaboration in matters of mutual regulatory interest, it said.
“The MoU also addresses capacity building and human capital development, as well as the exchange of regulatory expertise and technical knowledge to facilitate and encourage the development of the respective capital markets, in tandem with the continued growth and development of both Malaysian and Cambodian capital markets,” the statement added.
Speaking in the statement, the SC’s Awang Adek highlighted the urgency of stepping up regulatory cooperation between ASEAN authorities amid rising connectivity between the bloc’s markets.
“This MoU significantly enhances bilateral ties between the two authorities and will be mutually beneficial as we develop and regulate our respective capital markets”, he said.
The SERC’s Socheat added: “With the MoU signing, the cooperation between the two authorities is highly valued, signalling strong trusted relationships and sharing of experiences in various areas especially regulation and supervision.
“Both markets will gain from this cooperation as this will create long-term benefits for our people and country in this globalisation of financial market,” he was quoted as saying.
After the signing, senior SERC and SC officials looked into the implications and practical considerations of the MoU’s objectives on capital market development, in a first bilateral discussion, the statement indicated.
“Areas such as investor protection, capacity building and product offerings and development were discussed. In furthering some of these areas, SERC and SC agreed that consultation with domestic market participants would enable stakeholders to gauge relevant demand and feasibility,” it said.
Cambodia Securities Exchange (CSX) statistics show that a total of 18 companies feature on the local bourse – nine of which have listed shares, while the rest have issued bonds – which have raised a total of $317 million through their offerings.
The bourse’s CEO Hong Sok Hour revealed late last month that around 36,000 CSX trading accounts have been opened, and confirmed that the average daily trading value on the bourse reached about $500,000 last year.
Meanwhile, in its “CSX 2022 Achievements, Outlook, and Plans for 2023” bulletin, the local bourse revealed a number of targets for this year, such as doubling the number of new securities listings to 14 and the average daily trading value to $1 million, the latter of which would make for a third consecutive year of record highs.
The CSX is co-owned by the Ministry of Economy and Finance and the Korea Exchange (KRX) on a 55:45 basis.
