LONDON: Global fund managers have been called on to take advantage of various opportunities arising from developments in Malaysia's capital market.
Prime Minister Datuk Seri Najib Tun Razak, addressing the capital market roundtable organised on the third day of his official visit to the United Kingdom, said a developed capital market had a significant role to assume in Malaysia's quest to become a developed nation by 2020.
"All of you here today as global fund managers have the expertise we need and all of you can play a meaningful role in helping us achieve our future success," said Najib, who is Finance Minister, Thursday.
Najib said Malaysia today had one of the most comprehensive capital markets in the region, with its combined equity and debt markets having grown to US$667bil (RM2tril) in 2010, from US$240bil (RM720bil) in 2000.
It is projected to triple to between US$1.5tril (RM4.5tril) and US$1.9tril (RM5.7tril) in 2020.
He said the country's Economic Transformation Programme would create further momentum for growth and open up opportunities for issuers, intermediaries and investors.
Najib pointed out to the most senior members of some of London's leading financial institutions that Malaysia had a broad and diverse economy on which to build its capital market.
"Historical trends suggest that as Malaysia's capital market achieves maturity, growth in the debt and derivative markets will outpace growth in the equity market," he said.
He said, in particular, Malaysia was likely to replicate the pattern in developed markets where institutional funds rapidly outgrew the economy.
Touching on opportunities in Islamic finance, Najib told his audience that Malaysia was home to the world's largest Islamic banking and financial market, accounting for 66% of global sukuk issuance last year, and has 184 funds with US$8bil (RM24bil) in assets under management.
"Over the next 10 years, our Islamic capital market is set to triple in value," he said. - Bernama