Bursa Malaysia Annual Report 2015

FROM THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT

Bursa Malaysia •

Annual Report 2015

CEO’S MESSAGE

AND MANAGEMENT

DISCUSSION AND ANALYSIS

We also took deliberate steps over the past few years to grow revenue

contributions from our Derivatives Market and Islamic Capital Market

(“ICM”) to reduce our reliance on Securities Market revenue. The effort

has proven to be fruitful as we saw that the increase in the Derivatives

and Islamic Capital Markets revenue had cushioned the impact of the

reductions in the Securities Market contributions in 2015.

Meanwhile, we continued to work towards our strategic goals in 2015 that

will take us another step closer towards becoming ASEAN’s Multinational

Marketplace.

Our achievements in 2015 include:

• Having our Derivatives Market granted registration as a FBOT by the

US CFTC which allows identified members and participants in the

US to enter trades directly onto the Chicago Mercantile Exchange’s

(“CME”) Globex platform.

• Reviewing our ACE Market framework to streamline the listing

process to attract more small and medium enterprises (“SMEs”) into

our market.

• Stepping up our sustainability initiatives by issuing the Sustainability

Reporting Guide and six toolkits to our Public Listed Companies

(“PLCs”) to make our sustainability framework more holistic and

inclusive.

Meanwhile, we continued to extend our reach into the retail community

in the past year to cultivate the next generation of investors and market

participants without compromising our interactions with institutional

players.

CREATING VALUE IN A CHALLENGING

ENVIRONMENT

Our previous experiences in managing and navigating challenging and

volatile economic periods have helped condition our markets to be more

robust, diverse and, more importantly, sustainable at the core. In addition,

the resilience of our marketplace is supported by the ample domestic

liquidity of strong domestic institutions.

Our marketplace today comprises a broad base of commercial and

industrial activities, thanks in part to the Government’s Economic and

Government Transformation Programmes, which have supported the

efforts of PLCs to grow and expand regionally by creating a pro-business

environment. As the listing destination of these PLCs, we leveraged on the

diversity and resilience of the economy to drive our performance while

ensuring a fair and orderly market for our trading participants.

Bursa Malaysia has a clear strategy to become a regional leader and

ASEAN’s Multinational Marketplace. The details of this plan and its key

deliverables are specified in our Strategic Blueprint (2014-2016), which

identifies two focus areas for our initiatives in 2015:

Extracting value from our initiatives

ii. Building for the future

EXTRACTING VALUE FROM OUR INITIATIVES

Bursa Malaysia implemented a number of initiatives over the past few

years to create long-term value for our stakeholders. Initiatives such as

the BursaMKTPLC digital eCommunity platform, the implementation of

our Bursa Trading System 2 (“BTS 2”) and the approval of our registration

as a FBOT by the CFTC are examples of initiatives with latent value. The

values realised from these initiatives grow in tandem with the level of

participation in our markets. Our value extraction initiatives in 2015 were

therefore focused on attracting a greater number of participants into our

market to optimise our value, while delivering immediate benefits at the

same time.

Bursa Malaysia has a clear strategy to become

ASEAN’S MULTINATIONAL

MARKETPLACE

Extracting

value from our

initiatives

Building

for the

future

Two main focus areas in 2015