Chief Executive Officer's Message

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.

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