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Malaysia, India To Explore Developing Capital Market

By P.Vijian

MUMBAI, Nov 20 (Bernama) -- Malaysia is inviting India, Asia's third largest economy, to explore cross-border opportunities to expand their capital markets.

"There are so many opportunities available for both Malaysia and India in the capital market. We have long-standing successful ties in the commercial and investment side.

"However, there are abundant opportunities in the capital market that have not been gainfully exploited," Malaysia Securities Commission chairman Datuk Zarinah Anwar told the media in Mumbai, India's financial capital, Thursday.

Zarinah is leading a high-powered Malaysian delegation to India for the first India-Malaysia Capital Market Forum jointly organised by the SC and Securities & Exchange Board of India.

Saying India-Malaysia intra-investment is on a healthy note, she said the time was ripe for both emerging economies to take advantage of their existing strength to move into the capital market.

This is vital at a time when there is a need to fill the vacuum in global consumption and investment due to the financial crisis. So, it is an auspicious time to have the India-Malaysia capital market forum to build on the existing commercial links between our two countries," said Zarinah.

One of the most important segments in Malaysia is the bond market, which has established itself not only as a major source of financing for the country's corporate sector, it has also emerged as the region's largest local currency bond market with a RM515 billion (US$147 billion) fund size.

"Malaysia has a developed, diversified and deep capital market that complements our domestic banking sector in meeting the funding needs of the economy and investors' investment requirements.

"I think there are potential opportunities to expand Indian participation in Malaysia and vice-versa," she said in her keynote address.

She also said both countries should tap into their immense savings and foreign reserves to ride out the economic slowdown.

India has RM990 billion (US$275 billion) and Malaysia RM360 billion (US$100 billion) in foreign reserves.

"India and Malaysia have the balance sheet capability to finance domestic growth to offset the slow down in global economic activities.

"If we are able to effectively collaborate through long-term investments and through supplying liquidity for each other's market assets, we should be able to create conducive growth conditions in each other's markets," she said.

She also said the SC recently granted approval to India's Reliance Capital Asset Management, which owns assets worth nearly RM54 billion (US$15 billion), to operate in Malaysia.

SEBI chairman C.B. Bhave also attended the event.

-- BERNAMA