Facebook Twitter Google Plus Vimeo Youtube Feed Feedburner

Business Home LBoard

Experts: Capital markets need to diversify

 | October 23, 2013

By Tanu Pandey

KUALA LUMPUR: Countries need to encourage diversification and greater participation from investors in the capital markets not only domestically but also beyond borders to promote stability and resilience, experts echoed at the World Capital Markets Symposium (WCMS) in Kuala Lumpur.

“Inclusiveness also has to extend beyond domestic markets. The need for international coordination, given the increasingly cross-border nature of markets and its attendant risks, is crucial,” said Securities Commission chairman Ranjit Ajit Singh at the symposium.

He said coordination among different nations and markets was necessary to ensure that regulatory responses did not generate adverse unintended consequences.

Issues of sustainability and growth carry particular importance for emerging markets like Malaysia, and many others, he said, adding that the capital market plays a crucial role in driving the structural economic transformation of these countries.

“Asia and emerging markets have to play a more active and decisive role in shaping the architecture of international finance. Only then can we collectively arrive at solutions that are truly effective and global,” Ranjit added.

Among the speakers were CNN host Dr Fareed Zakaria, senior fellow of Institute of New Economic Thinking and former chairman of FSA UK Lord Adair Turner, adviser to the Prime Minister of India on economic reform Dr Bibek Debroy, chairman and CEO CLSA Hong Kong Jonathan Slone and many others.

In a bid to diversify the capital markets, Malaysia has deepened the country’s bond market, which is the fourth-largest bond market in Asia, amounting to RM1 trillion (US$317 billion) in outstanding value.

This content is provided by FMT content provider The Malaysian Reserve


Readers are required to have a valid Facebook account to comment on this story. We welcome your opinions to allow a healthy debate. We want our readers to be responsible while commenting and to consider how their views could be received by others. Please be polite and do not use swear words or crude or sexual language or defamatory words. FMT also holds the right to remove comments that violate the letter or spirit of the general commenting rules.

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.