CEO's  Message

(Extracted from Annual Report 2009)

Challenge and opportunity were both features of 2009. Economic conditions presented challenges to everyone, including Bursa Malaysia. Our response was to pay special attention to sustaining and improving the attractiveness and competitiveness of our market, with liquidity and efficiency being the primary focus.

Internally, we took a hard look at our costs and made some significant changes and improvements. We re-set our priorities and adopted innovative cost management measures without compromising quality. In fact, what differentiates Bursa Malaysia is the quality and integrity of our markets. This is demonstrated in our products and services, our people, the consistency with which we manage our markets and the business partners we work with.

Early in 2009, the Government announced a series of economic stimulus initiatives. As the year progressed, signs of recovery began to appear in our markets, and the rate of decline in the global economy also started to taper off. There was a rebound in international financial markets, and this signalled a return of positive sentiment domestically, which gradually gathered momentum. From a low of 838.39 points on 12 March 2009, the benchmark FBM KLCI ended the year at 1,272.78 points. However, trading volume in the securities market was affected largely by economic conditions, while the derivatives market sustained its levels of activity. Throughout the year, market integrity remained intact.

While addressing these challenges, we also took the opportunity to secure some notable advances for Bursa Malaysia and increase our attractiveness to both issuers and investors. We embarked on significant market and regulatory reforms to facilitate capital raising by issuers; we merged our Main and Second Boards to form a single Main Market, while our MESDAQ Market was revamped to become the new ACE Market. In promoting global relevance, we enhanced our benchmark index, to adopt FTSE's global index methodology and renamed it FBM KLCI. We also added to our investor services by introducing DMA for equities and market making for SWs and ETFs.

As part of our drive to establish ourselves as a leader in Islamic Markets, we introduced our Shari'ah compliant commodity trading platform, Bursa Suq Al-Sila', in August 2009. The first cross border trade between GCC and Bursa Malaysia was executed within two months of launch, and the platform is now in regular use.

Our derivatives market took a significant step towards global recognition when we announced the formation of a strategic partnership with CME, the world's leading derivatives exchange. Enlisting CME as our derivatives partner allows us to gain global access and profile for our derivatives products. The partnership allows us to leverage on the strengths of a market leader and will help us grow our derivatives market further.

These strategic and structural moves in 2009 exemplify our dedication to quality and demonstrate our commitment to keep our markets in line with evolving world standards. In a competitive world, we are always alert for ways to enhance our services.

There are many contributors to our achievement in 2009, and I thank you all.

First must be our people. They are our strength at Bursa Malaysia and will continue to be so. It is exciting to be part of such a team.

Those who invest in our markets as principals, those who participate in our markets as issuers, those who act as intermediaries, and those who work with us as partners have all helped us thrive. Their inputs and responses to our products and services helped us craft the innovations which are needed to stay competitive and relevant in a global environment.

Our national policy makers and our regulator delivered invaluable support in ensuring Bursa Malaysia is a conducive venue for investment and capital raising. Nearer to home, our Board of Directors provided the counsel and encouragement which helped the team at Bursa Malaysia convert the challenges into opportunities and emerge with the confidence that we can successfully shape our future.

Finally, my thanks must also be extended to our shareholders. Your belief in us is reflected in the fact that, once again, Bursa Malaysia's shares outperformed our own benchmark index, the FBM KLCI, during 2009. Such rewarding signals strengthen our resolve to continue delivering the returns which have won your belief in us thus far.

Dato' Yusli Mohamed Yusoff
Chief Executive Officer, Bursa Malaysia Berhad
ceo@bursamalaysia.com