THE MALAYSIAN CAPITAL MARKET: NEW RULES OF THE GAME

Abstract

The development of regulatory oversight in Malaysia’s securities industry traces back to the late 19th century, beginning as an extension of British commercial activity in the rubber and tin sectors. Formal organisation emerged in 1930 with the establishment of the Singapore Stockbrokers’ Association. After disruptions during World War II, the Malayan Stock Exchange was formed in 1960, enabling public share trading supported by the Central Bank. Efforts to enhance public confidence led to the creation of a listings board in 1963 and closer coordination among the Central Bank, the Stock Exchange, and the Registrar of Companies. Following the formation of the Federation of Malaysia, the Stock Exchange of Malaysia was established in 1964, accompanied by strengthened rules, a fidelity fund, and stricter listing requirements. The Companies Act 1965 subsequently provided a more comprehensive legal framework, mandating greater disclosure to improve investor protection and promote a more informed investment community.