Bursa Malaysia at AF2011 highlights

Presenter: Dato’ Yusli Yusof, Chief Executive Officer (9th Feb 2011)

  • Dato’ Yusli presented to a good crowd. He went through in detail of the different
    product offerings. Bursa has the largest value of sukuk (Islamic bonds) listed on
    any exchanges globally.
  • Market velocity is picking up. In January, it hit 49% and Bursa's target velocity
    is 60%. The peak was 59% in 1997. 
  • Its main objective is to increase the quality of the market with better corporate
    governance and initial public offerings of larger companies to add more depth to
    the market.
  • Bursa would like to see more participation of foreigners in the Crude Palm Oil
    futures market as currently it is only 20%.
  • There were some Chinese portfolio flows after Malaysia was designated as one of
    11 QDII markets that Chinese institutional investors can invest in.
  • There were many questions on the ASEAN Link. It is progressing well and ideally
    believes that all the exchanges should merge into one. The technology can do it
    but it is whether the political sensitivities allow it. The one that makes most
    logical sense is Malaysia and Singapore given the historical links. 
  • Bursa has an annual capital expenditure of RM20m on technology and another
    RM20m on a better platform for derivatives.
  • Bursa will continue with the existing high dividend payout ratio of 90% unless
    they identify any meaningful investments.

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