CEO's  Message

(extracted from Annual Report 2008)

2008 was a year of highs and lows. Early in the year, the KLCI hit an all time high and six of our FTSE Bursa Malaysia (FBM) indices achieved record peaks. However, the effects of the global financial turmoil and domestic uncertainties soon impacted our market.

As 2008 progressed, the US subprime mortgage problem unravelled, followed by a credit and liquidity crunch, with significant stresses to the global banking system. Not surprisingly, investor confidence, the world over, steadily evaporated, resulting in dramatic gyrations in the securities markets.

Key commodities traded at record highs during the beginning of the year, only to go into a sharp decline as global trade volumes decreased with major consuming countries of the West cutting their spending. By year end, the impact was felt around the world, with many countries moving into recession. Developed countries adopted an expansionary approach to counter the global economic crisis, with interest rate cuts and massive liquidity injections. However, it will take some time before we see any visible results and the global credit supply eases.

In Malaysia, the impact was reflected in a drop in export orders for our manufactured goods and a decline in foreign investments. While economic fundamentals and recently announced stimulus measures to boost domestic consumption should help mitigate the effects of the global downturn, we cannot realistically expect the same growth rates as experienced in recent years. Our listed companies are likely to experience challenging times, and this may be a key consideration for investors in the coming months. Overall, we ended the year with KLCI at 876.75 points, 39% below where we started.

In such circumstances, there is a great temptation for us to concentrate only on cost cutting measures and protecting our position. However, Bursa Malaysia believes in looking at long term growth and value, while maintaining efforts to safeguard our present position. Globally, markets are consolidating, and Bursa Malaysia will have to position itself to remain a relevant and attractive niche player amongst peer exchanges. This approach will help us remain focused on the creation of long-term shareholder value.

As always, the progress we have made this year, even in such difficult circumstances, is the result of a concerted effort by many people, and the support of many others.

We owe thanks to the investors and the market participants who have stayed the course and retained faith in our markets. We owe thanks also to those who help support us with products and services. An efficient, innovative and cost effective market is the goal for us all and we will not slacken our efforts to stay at the leading edge of progress.

To all our staff, whose perseverance and commitment humbles me, I extend my personal thanks. Your dedication to this company is an inspiration.

To the nation we serve and the society that expects much of us, thank you for your continued support. To those who watch over us and monitor our progress, whether as regulators or as directors on our Board, thank you for all your efforts and guidance. Your backing is crucial for our success.

Finally, to our shareholders, your constant support is the foundation of our future progress. We must invest in new ideas, products and technology if we are to become a leader amongst regional exchanges. That means continuing to build our business while employing our reserves wisely during challenging times. All of us at Bursa Malaysia are grateful for your loyalty.

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