PETALING JAYA: Malaysia’s 2022 capital market size rose to RM3.6 trillion from RM3.5 trillion in 2021 with the drop in the equity market capitalisation offset by higher bonds and sukuk outstanding, according to the Securities Commission (SC).
In its 2022 annual report released today, the SC said the capital market remained resilient and orderly in 2022 against an increasingly pessimistic global economic outlook and tighter global financial conditions. Importantly, it continued to serve its roles in financing economic activities and intermediating savings.
“Total funds raised in the capital market rose to RM179.4 billion in 2022 from RM131.3 billion in 2021, of which RM26.0 billion was raised via the equity market and RM153.3 billion issued via the corporate bond market.
“Likewise, alternative fundraising avenues via equity crowdfunding and peer-to-peer financing rose in 2022, and continued to support micro, small and medium enterprises’ funding needs,” the SC said.
Over in the fund management industry, that sector experienced weaker market valuation and net redemptions in 2022, with asset under management totalling RM906.5 billion versus RM951.1 billion in 2021, the SC added.
On the domestic equity market, the SC said the market was affected by persistent headwinds globally and domestically.
Bursa Malaysia’s overall market capitalisation and the FBMKLCI moderated to RM1.74 trillion and RM1.03 trillion respectively in 2022, compared to RM1.79 trillion and RM1.04 trillion in 2021, respectively.
The FBMKLCI index declined by 4.6% to end the year at 1,495.49 points.
In terms of trade participation, local institutions net sold RM6.53 billion in 2022. Non-residents net bought RM4.40 billion (2021: – RM3.15 billion) after four consecutive years of net selling, while net buying by local retail investors totalled RM2.13 billion.
In terms of value traded, the participation rate for retail investors declined to an average of 25.7% in 2022, from 34.6% in 2021, but remained above the five-year pre-pandemic average of 18.8%.
Meanwhile, the average daily trading volume also moderated this year to 3.00 billion from RM5.85 billion in 2021, valued at an average of RM2.18 billion per day this year compared to RM3.66 billion in 2021.
“In the Malaysian bond market, total bonds and sukuk outstanding grew to RM1.9 trillion this year from RM1.7 trillion in 2021, reflecting higher levels of bond and sukuk fundraising in the market.
“The overall Malaysian government securities yield curve shifted upward, tracking the movements of the global bond market. This was driven by expectations of continued monetary policy normalisation globally and domestically, given elevated inflationary pressures,” the SC said.