In conjunction with the media briefing on the release of its financial results for FYE 2020 on 2 February 2021, Bursa Malaysia gave an insight into its new Strategic Roadmap for 2021 to 2023 ('Strategic Roadmap').
Further details of the Strategic Roadmap were contained in its Integrated Annual Report 2020 ('AR 2020') which was released on 2 March 2021.
According to Datuk Muhamad Umar Swift, the Chief Executive Officer of Bursa Malaysia, the Strategic Roadmap will be built on five pillars, namely:
  1. strengthening its core business as a securities market by developing its ecosystem and expanding the product offering to cater to growth segments in the securities market;
  1. diversifying the derivatives business with the objective of transforming Bursa Malaysia into the leading commodities market in ASEAN through internationalisation of the market and expansion of derivatives products;
  1. positioning Bursa Malaysia as the global hub for Islamic capital markets so as to be the global leading exchange for Islamic fundraising, hedging and investments by expanding the range of Shariah-compliant products;
  1. providing new and improved services to the capital market through developing new solutions, platforms and tools that support the markets' needs; and
  1. embedding sustainability within its organisation and marketplace with the aim of becoming the preferred marketplace for sustainable and responsible investment by embedding high standards of sustainability practices and disclosures in Bursa Malaysia group of companies and in the issuers listed on its securities exchanges.
The AR 2020 states that the Strategic Roadmap will focus broadly on three main strategies, namely product expansion, ecosystem development and capacity and capabilities building. It identifies the following four key enablers necessary to achieve the objectives in the Strategic Roadmap:
  • People and culture;
  • Technology;
  • Data and Innovation; and
  • Ecosystem.
The presentation materials at the media briefing of 2 February 2021 provided further details of the three main strategies. These are set out below.
Product Expansion
Increase Market Competitiveness Exemplify Islamic Thought Leadership Widening Derivatives Offerings
  • Boost core product offering
  • Attract quality IPOs
  • Grow ESG and ETF products
  • Provide new platforms/ services for market participants
  • Offer new data solutions
  • Provide access to new asset classes – e.g. tokenised assets
  • Cement leading position in the Islamic Capital Market via innovative and impactful solutions
  • Waqf products
  • New products to serve the needs within the Islamic Capital Market
  • Strengthen the suite of palm oil complex products - e.g. East Malaysia crude palm oil futures contract
  • Other new financial/equity, and commodity derivatives
Ecosystem Development
Grow market vibrancy and liquidity Promote stickiness and internationalisation Embed sustainability in the marketplace
  • Implement various programs to boost market vibrancy / increase trading – e.g. Inactive Stock Scheme
  • Facilitate retail investors' participation – e.g. via funds access and digestible information
  • Deliver enhancements across the value chain to increase efficiencies of participating in the market - e.g. electronic negotiated large trades for derivatives)
  • Expand global reach - e.g. T+1 night trading for derivatives
  • Implement initiatives to drive sustainability practices among listed issuers – e.g. develop a Corporate Sustainability Practitioners Competency Framework
  • Spur better, sustainable performance among PLCs
  • Further facilitate listing/ fundraising
Capacity and Capabilities Building
Leverage technology for multi-pronged benefits Innovation via POCs Grow Organisational performance
  • Invest in technology upgrades and resilience of core infrastructure systems and applications
  • Employ cloud based and robotic process automation solutions to drive cost efficiencies
  • Reinvest technology delivery to stakeholders
  • Leapfrog fintech capabilities via completion of proof of concepts – towards innovative solutions that enhance agility and efficiency
  • Implement identified programs to strengthen talent pool
  • Develop enterprise data management capabilities
Datuk Muhamad Umar Swift also mentioned in the AR2020 at to the possibility of Bursa Malaysia collaborating with strategic partners, such as key institutional investors, to progress towards more sustainable offerings.
The coming three years will be exciting times for Bursa Malaysia as it rolls out measures to achieve the objectives set out in its Strategic Roadmap. Market participants can look forward to the launch of new products and asset classes, some of which have already been identified in the materials issued in relation to the Strategic Roadmap.

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