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.