Chairman's Message |
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The Malaysian domestic economy has suffered some bruises, but I believe we are well placed to face the challenges of the coming months. However, like its global brethren, our stock market has reeled under the pressure. Weak sentiment and trading volume were reflected in the benchmark Kuala Lumpur Composite Index (KLCI), which retreated some 39% during the course of the year. Against this background, ambitious Key Performance Indicators (KPIs) for the year proved to be unattainable: Equities market velocity: 2008 target: 56%; Actual: 34% Our financial results reflected market performance. Both revenue and profit declined significantly. Despite such adverse conditions, we held fast to our commitment to our shareholders and distributed dividend payout of 91% of our net profit. Overall, earnings per share for the year were 19.9 sen. Looking after the long term interests of shareholders is, of course, our primary concern. This has translated into a decision by the Board to take a proactive, forward looking approach to our strategies. After an intense reassessment, we focused on initiatives that would increase our relevance in order to stay competitive to the fast evolving capital market landscape. First, we must keep pace with our peers and increase Bursa Malaysia's overall competitiveness. This means adapting to the requirements of our customers by easing the process of transacting on our markets. A robust and resilient Bursa Malaysia will have a greater, more diverse product range and a broader issuer base. Stronger institutional and retail investor participation will be underpinned by effective, even-handed supervision and regulation. We will build strategic alliances and partnerships which enable Bursa Malaysia to follow a path to growth. We will also differentiate Bursa Malaysia from its peers by creating a unique value proposition based on two key niches which we have identified. We believe we can build on our track record of innovation and grow Bursa Malaysia into a recognised Islamic financial and investment hub. The second string to this bow is our strength in derivatives and commodities, especially palm oil, on which we can leverage to firmly establish Bursa Malaysia as a centre for commodities trading. By setting Bursa Malaysia apart from its peers, we aim to raise international participation in our market. We intend to open the way for foreign intermediaries to be active, which will induce greater foreign investor presence. Ultimately, the aim is to position Bursa Malaysia as a preferred destination to raise capital and invest. To achieve these goals, we must continue to upgrade two key skill sets. Building supporting soft skills means additional investment in the development of our human capital and our capabilities to address and manage the changes which will accompany our development. Our hard skill set will consist of improved infrastructure. We must enhance our Information Technology (IT) capabilities and continue to upgrade technology, so as to stay at the leading edge when it comes to market efficiency. An important first step in this direction was the launch of our new trading platform, Bursa Trade Securities (BTS), on 1 December 2008. Speed, access, and greater functionality are key features of the system, which enhances our processing and execution capability and keeps us in line with leading global markets.
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