A number of initiatives were introduced during 2014 to enhance the competitiveness and efficiency of Malaysian capital markets. Bursa Malaysia implemented the auto-closure of dormant central depository accounts to strengthen the existing control measures and the introduction of the non-trade matching service to facilitate matching of non-trade related transactions (for example, IPOs).

Malaysia has experienced increased securities borrowing and lending interest and a number of global securities lending players are putting in place the infrastructure required to participate in the local market.

“Last year also saw Malaysia issuing its landmark foreign currency-denominated bond onshore – Cagamas Global Plc Multicurrency Medium Term Note,” says On Bee Heong, head of HSBC Securities Services Malaysia. “This issuance reaffirms Malaysia’s infrastructure readiness and effectiveness to serve as a platform for the issuance, trading, settlement and depository of foreign currency bonds.”

Bank Negara Malaysia introduced the mandatory reporting on ringgit-denominated assets held by non-resident beneficial owners, for debt securities and cash deposits. 

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