Chief Executive Officer's Message

c. Market-Making Framework

We are in the process of establishing a market-making framework for our markets. Market-making reduces risk through improved market efficiency and a better price discovery process. It will reduce the impact of large trades, improve liquidity and enhance competitiveness.

We are currently in the process of setting up the regulatory and IT infrastructure for the project and target to implement the first phase of the market-making framework for Structured Warrants (SWs), ETFs and derivatives by the first half of 2009. Central to this process will be the admission of specialist market makers.

d. Streamlining the Main and Second Boards and Revamp of the MESDAQ Market

Together with the SC, Bursa Malaysia is now working to create a new unified board, which will list companies with an established profit track record. The MESDAQ Market is expected to be transformed into a sponsor-driven market and expanded to include the listing of both technology and nontechnology emerging companies. This initiative should position Bursa Malaysia as an attractive listing destination for both local and foreign companies. It is also part of a broader plan to enhance access to Bursa Malaysia and improve the speed of fund raising. A public consultation process covering the draft rules and guidelines commenced in February 2009. It is expected that the streamlining of boards will be implemented in 2009.

In line with global trends and investor expectations, we will be introducing an over the counter model for Securities Borrowing and Lending (SBL). We will also revise the minimum bid structure in an effort to increase market turnover and enhance price discovery.

4. Creating the Niche

Malaysia has seen considerable development and expansion in the Islamic securities and bond markets over recent years, as a result of innovation in Islamic project financing and growth in Shariah approved investment products. Malaysia has also earned a reputation as a pioneer in Islamic capital market-related research and development. These merits provide an opportunity for Bursa Malaysia to carve a niche for itself as a vibrant ICM.

Malaysia is also the world's second largest palm oil producer and a producer of other international commodities. Bursa Malaysia intends to leverage on this position and develop a niche in commodities.