English

17 March 2017

VOICE OF MSWG

A FRESH DAWN IN ASIA-PACIFIC REGULATION

The Malaysian capital market received a huge boost this week when the International Organisation of Securities Commissions (IOSCO), a grouping of global securities regulators that oversee markets worth over $140 trillion, launched its first-ever presence outside of its headquarters in Madrid, Spain, when it opened its Asia-Pacific hub in Kuala Lumpur, Malaysia. The hub, located at the Securities Commission Malaysia signals the growing importance of Asia-Pacific in the global economy and the role Malaysia will play in helping to develop the region’s emerging capital markets and regulatory capabilities.

10 March 2017

MARKET AND REGULATORY UPDATE

SC PROPOSES AMENDMENTS TO ENHANCE FRAMEWORK FOR PRINCIPAL ADVISERS

Securities Commission Malaysia (SC) released a consultation paper on 6 March 2017 inviting feedback on enhanced framework for principal advisers as part of its ongoing efforts to develop a competitive and efficient capital market.

In issuing this consultation paper, the SC is seeking responses from the public on several proposed enhancements, including providing clarity on the roles and responsibilities of Qualified Senior Personnel (QSP) and Approved Principle Advisers (APAs). In addition, cognisant of the challenges faced by APAs in increasing the number of QSP, SC is proposing new eligibility criteria for the registration of QSP which includes admission of lawyers and reporting accountants with relevant experience as QSPs.

VOICE OF MSWG

It was a decade ago that Sime Darby embarked on a major merger corporate exercise together with Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd to form Sime Darby Bhd (SDB). Unfortunately, the results have not been as expected. Although from FY 2008 to FY 2016, the net assets per share had increased from RM3.61 to RM5.10, basic earnings per share declined from 59.63 sen to 38.4 sen and ROE slipped from 18% to 7.6% for the same period.

SDB’s latest announcement to pursue a “pure-play strategy” involving the creation of standalone listed entities in the plantation, property and trading & logistics sectors to “unlock sustainable value” is welcome. MSWG views this “demerger” exercise positively, especially in view of the current weak market conditions. Nevertheless, whether shareholders can expect brighter days ahead will depend on how the existing common debts and assets will be allocated across the three entities and its execution. We look forward to more details on the implementation measures and indicative timelines.

24 February 2017

MARKET AND REGULATORY UPDATE

BURSA MALAYSIA ANNOUNCED CHANGES TO ORGANISATIONAL STRUCTURE

Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) announced changes to its organisational structure. Effective 15th February 2017 and in-line with the new organisational structure, the following personnel changes will take effect:

Ms. Selvarany Rasiah, formerly Director of Regulation will now lead the expanded commercial portfolio as Chief Commercial Officer (“CCO”)
Datin Azalina Adham, formerly Director of Strategy and Transformation will lead the operational transformation as the Chief Operating Officer (“COO”)
Ms. Yew Yee Tee, formerly Head of Enforcement will take on the role of Chief Regulatory Officer (“CRO”)