Bursa Malaysia Annual Report 2014

FROM THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT

CEO’S MESSAGE AND MANAGEMENT DISCUSSION AND ANALYSIS

SECURITIES MARKET

BURSA MALAYSIA MAINTAINS POSITION AS LARGEST ASEAN FUNDRAISING MARKET

Despite fewer IPOs in 2014 compared to 2013, we retained our position as

the largest fundraising destination in ASEAN for the third consecutive year,

having raised RM24.3 billion through IPOs and the secondary market. The total

represents an 8% increase from the RM22.5 billion raised in 2013. It is also a

sign that companies are growing more bullish in our ability as an exchange to

raise the capital they need.

In terms of listings, Bursa Malaysia saw a total of 14 new companies added to

our Securities Market, raising a total of RM5.9 billion, down 28% from the RM8.2

billion raised in 2013. The listing of IOI Properties Group Bhd was the first and

largest IPO exercise for 2014, raising RM1.9 billion.

We also saw the continuation of a trend to list Special Purpose Acquisition

Companies (SPAC) with Reach Energy Bhd raising RM750 million from its IPO

last August.

OUTREACH INITIATIVES

2014 was a busy year for our outreach team, which engaged with over 30,000

retail investors. We leveraged on established platforms while introducing new

ones as we sought to strengthen and build communities in line with our overall

strategic plan.

1. Invest Malaysia Programme

The annual Invest Malaysia (IM) programme, which is our flagship platform

for engaging fund managers and institutional investors, continued to set

new records in 2014. Investors and fund managers with total assets under

management (AUM) worth a record of almost USD55 trillion attended our IM

events held in Kuala Lumpur, Tokyo, New York, London and Hong Kong.

2. Capital Market and PLC Profiling

In addition to our engagement activities held under the IM banner, we had a

number of initiatives to promote our capital markets and PLCs in Malaysia,

Singapore, Thailand and Japan. The choice of engagement channels/

platforms used differed with each country. In The Spotlight events in 2014,

PLCs were profiled under two themes - 2013 IPO Review and Property

& REITs - to fund managers, investment advisers and remisiers in Kuala

Lumpur.

We promoted our market to retail investors in Singapore via weekly profile

of PLCs on the Sharesinv.com website and social media. Through the

Spotlight On Malaysia events, we worked with various partners in each

country for on-ground profiling of market and PLCs. To extend our outreach,

we also invited ASEAN media practitioners to Kuala Lumpur to showcase the

diversity of our marketplace and PLCs to share their stories.

In Thailand, Bursa Malaysia collaborated with Money Channel to raise Thai

retail investors’ awareness of investment opportunities in Malaysia via

two programmes, i.e. Good Morning Bursa Malaysia and Stocks Around

Us. Good Morning Bursa Malaysia features live phone-in interviews with

licensed research analysts, while Stocks Around Us showcases video

clips of selected PLCs recorded at the PLCs’ business premises/factory.

The programmes are aired on Money Channel’s network platforms, which

include satellite television channels and internet TV.

3. Engaging Youth

Our youth engagement activities focused on increasing financial literacy

amongst Gen Y and on better familiarising them with the operations,

products and services of the Exchange. In 2014, 10 Bursa Young Investors'

Clubs (BYICs) were established in public and private universities in four

states across the nation. We supported the BYICs by holding several investor

education activities including a leadership boot camp, investment seminars,

hosting talks by PLCs and organising field trips to Bursa Malaysia. Some

2,400 students from these universities participated in the clubs. In 2014,

the total number of students visiting Bursa Malaysia rose 52% to 5,066

students from 3,343 students in 2013.

4. Engaging Financial Intermediaries

We held numerous activities over the past year to recognise and support

financial intermediaries including brokers, dealers and remisiers.

Workshops and engagement sessions held in 2014 included Dealers

Representative Engagement Sessions, a CPE Accredited Product

workshop, an Exchange Traded Fund (ETF) Incentive Programme and the

Broker Awards Appreciation Dinner.

5. Online Trading Games and Competition

To further expand our outreach to young investors, we held a unique Fantasy

FTBL.TRADR competition in conjunction with World Cup 2014 to give them

a taste of trading. The Fantasy FTBL.TRADR competition made use of the

same stock portfolio management tools available on BursaMKTPLC, and

allowed users to analyse and trade football players much in the same way

that traders would analyse and trade stocks. We also held the inaugural

Great Bursa Bull Hunt online competition in 2014, which was designed to

raise investment awareness in retail investors nationwide.

6. Engaging Institutional Investors

We held the Enhancing Portfolio Returns Using ETF and Securities Borrowing

and Lending (SBL) Conference 2014 to help our institutional investors

better understand the way that ETF and SBL products can enhance their

investment returns.

With respect to ETF, the event was structured to entice domestic and

global players to consider Bursa Malaysia as an ETF listing destination.

As for the SBL space, the conference served as a platform to attract new

players, especially local institutions and investment banks, to participate

in our growing SBL/Regulated Short Selling (RSS) market. The conference

also served as a networking avenue to both local and foreign institutional

players.

Bursa Malaysia

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Annual Report 2014