BBMF3033 FINANCIAL MARKETS

AND
REGULATIONS

No ID number Name Marks

1 21WBR13649 CHONG YEN YEN

2 21WBR11396 KISHAN DANNIEL BIN HUSSEN

3 21WBR13652 SOO JING KAI

4 21WBR13651 SHEE KHAI JIEN

5 21WBR13362 WONG CHOY LEI

6 21WBR13564 YAP ZHI HANG

 APPENDIX 3 (Rev. 3)
FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT
COURSE CODE/ COURSE TITLE: 3033 Financial Markets And Regulations
NAME OF STUDENT(s): ID No:
1) CHONG YEN YEN 21WBR13649
2) KISHAN DANNIEL BIN HUSSEN 21WBR11396
3) SOO JING KAI 21WBR13652
4) SHEE KHAI JIEN 21WBR13651
5) WONG CHOY LEI 21WBR13362
6) YAP ZHI HANG 21WBR13564
PROGRAMME: Bachelor in Financial and Investment
YEAR OF STUDY: 3 ACADEMIC YEAR: 2023
SEMESTER: 2
GROUP NO: 1
COURSEWORK NO: 1/2/3 NATURE OF MARKS ALLOCATED:
COURSEWORK: (e.g.
presentation, Q& A, /100
individual/group
assignment etc)

COMMENTS :

Student’s Date: 30/03/2023 Lecturer/Tutor’s Date:

Acknowledgement: Signature:

Note: This form must be submitted together with the assessment grid/grading criteria and
Turnitin report for the coursework.
 Group Member Appraisal Form
The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.
Group members will be appraised using the following basis:
100%  Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of
group members were happy with.
 Group member contributed to group discussion.
 Group member always offered to help or volunteered for tasks.
 Group member had assigned tasks completed on time.
50%  Group member missed group meetings without making alternative arrangements
with other group members.
 Group member assigned tasks were only partly completed or poorly completed.
 Group member did not contribute to the group effort or volunteered for tasks.
0%  Group member attended few meetings and made no contribution to the
assignment,

Name of student:_____ CHONG YEN YEN __________________________________

Instructions:
Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50% or
0%.
Name of Group Member Assessment

1. KISHAN DANNIEL BIN HUSSEN 100% 50% 0%

2 SOO JING KAI 100% 50% 0%
3 SHEE KHAI JIEN 100% 50% 0%
4 WONG CHOY LEI 100% 50% 0%
5 YAP ZHI HANG 100% 50% 0%
Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being recorded
against your name.
Note: This form must be submitted together with the assessment grid/grading criteria and
Turnitin report for the coursework.
Group Member Appraisal Form
The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.
Group members will be appraised using the following basis:
100%  Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of
group members were happy with.
 Group member contributed to group discussion.
 Group member always offered to help or volunteered for tasks.
 Group member had assigned tasks completed on time.
50%  Group member missed group meetings without making alternative arrangements
with other group members.
 Group member assigned tasks were only partly completed or poorly completed.
 Group member did not contribute to the group effort or volunteered for tasks.
0%  Group member attended few meetings and made no contribution to the
assignment,

Name of student:______ KISHAN DANNIEL BIN HUSSEN __________________________

Instructions:
Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50% or
0%.
Name of Group Member Assessment

1. CHONG YEN YEN 100% 50% 0%

2 SOO JING KAI 100% 50% 0%
3 SHEE KHAI JIEN 100% 50% 0%
4 WONG CHOY LEI 100% 50% 0%
5 YAP ZHI HANG 100% 50% 0%
Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
Note: This form must be submitted together with the assessment grid/grading criteria and
Turnitin report for the coursework.
Group Member Appraisal Form
The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.
Group members will be appraised using the following basis:
100%  Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of
group members were happy with.
 Group member contributed to group discussion.
 Group member always offered to help or volunteered for tasks.
 Group member had assigned tasks completed on time.
50%  Group member missed group meetings without making alternative arrangements
with other group members.
 Group member assigned tasks were only partly completed or poorly completed.
 Group member did not contribute to the group effort or volunteered for tasks.
0%  Group member attended few meetings and made no contribution to the
assignment,

Name of student:_______ SOO JING KAI ________________________________

Instructions:
Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50% or
0%.
Name of Group Member Assessment

1. CHONG YEN YEN 100% 50% 0%

2 KISHAN DANNIEL BIN HUSSEN 100% 50% 0%
3 SHEE KHAI JIEN 100% 50% 0%
4 WONG CHOY LEI 100% 50% 0%
5 YAP ZHI HANG 100% 50% 0%
Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
Note: This form must be submitted together with the assessment grid/grading criteria and
Turnitin report for the coursework.
Group Member Appraisal Form
The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.
Group members will be appraised using the following basis:
100%  Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of
group members were happy with.
 Group member contributed to group discussion.
 Group member always offered to help or volunteered for tasks.
 Group member had assigned tasks completed on time.
50%  Group member missed group meetings without making alternative arrangements
with other group members.
 Group member assigned tasks were only partly completed or poorly completed.
 Group member did not contribute to the group effort or volunteered for tasks.
0%  Group member attended few meetings and made no contribution to the
assignment,

Name of student:_________ SHEE KHAI JIEN ______________________________

Instructions:
Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50% or
0%.
Name of Group Member Assessment

1. CHONG YEN YEN 100% 50% 0%

2 KISHAN DANNIEL BIN HUSSEN 100% 50% 0%
3 SOO JING KAI 100% 50% 0%
4 WONG CHOY LEI 100% 50% 0%
5 YAP ZHI HANG 100% 50% 0%
Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
Note: This form must be submitted together with the assessment grid/grading criteria and
Turnitin report for the coursework.
Group Member Appraisal Form
The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.
Group members will be appraised using the following basis:
100%  Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of
group members were happy with.
 Group member contributed to group discussion.
 Group member always offered to help or volunteered for tasks.
 Group member had assigned tasks completed on time.
50%  Group member missed group meetings without making alternative arrangements
with other group members.
 Group member assigned tasks were only partly completed or poorly completed.
 Group member did not contribute to the group effort or volunteered for tasks.
0%  Group member attended few meetings and made no contribution to the
assignment,

Name of student:_______ WONG CHOY LEI ________________________________

Instructions:
Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50% or
0%.
Name of Group Member Assessment

1. CHONG YEN YEN 100% 50% 0%

2 KISHAN DANNIEL BIN HUSSEN 100% 50% 0%
3 SOO JING KAI 100% 50% 0%
4 SHEE KHAI JIEN 100% 50% 0%
5 YAP ZHI HANG 100% 50% 0%
Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
Note: This form must be submitted together with the assessment grid/grading criteria and
Turnitin report for the coursework.
Group Member Appraisal Form
The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.
Group members will be appraised using the following basis:
100%  Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of
group members were happy with.
 Group member contributed to group discussion.
 Group member always offered to help or volunteered for tasks.
 Group member had assigned tasks completed on time.
50%  Group member missed group meetings without making alternative arrangements
with other group members.
 Group member assigned tasks were only partly completed or poorly completed.
 Group member did not contribute to the group effort or volunteered for tasks.
0%  Group member attended few meetings and made no contribution to the
assignment,

Name of student:______________ YAP ZHI HANG _________________________

Instructions:
Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50% or
0%.
Name of Group Member Assessment

1. CHONG YEN YEN 100% 50% 0%

2 KISHAN DANNIEL BIN HUSSEN 100% 50% 0%
3 SOO JING KAI 100% 50% 0%
4 SHEE KHAI JIEN 100% 50% 0%
5 WONG CHOY LEI 100% 50% 0%
Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
 KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTING, FINANCE AND BUSINESS

Plagiarism Statement

Read, complete and sign this statement to be submitted with your written work.

We confirm that this submitted works are all our own work and are in our own words.

Name (Block Capitals) Registration. No. Signature

1. … CHONG YEN YEN …… ……21WBR13649……… ……...Yen………

2. KISHAN DANNIEL BIN HUSSEN…21WBR11396……… ………Kishan……

3. … SOO JING KAI ………… ……21WBR13652……… ……...Soo…………

4. … SHEE KHAI JIEN ……… ……21WBR13651……… ……..…Shee………

5. … WONG CHOY LEI …… ……21WBR13362……… ……..…Wong……

6. … YAP ZHI HANG ……… ……21WBR13564……… ……...Yap…………

Course: Financial Markets and Regulations

Tutorial Group Number : …………………1……………………………

Date : ………………30 March 2023……………………

 TURNITIN REPORT
GROUP TURNITIN REPORT
INDIVIDUAL TURNITIN REPORT
Name Student 1: CHONG YEN YEN

Name Student 2: KISHAN DANNIEL BIN HUSSEN

Name Student 3: SOO JING KAI

Name Student 4: SHEE KHAI JIEN

Name Student 5: WONG CHOY LEI

Name Student 6: YAP ZHI HANG

 ASSESSMENT CRITERIA
TOTA TOTAL
CRITERIA EXCELLENT GOOD AVERAGE POOR
MARKS SCORES
GROUP ASSESSMENT
Excellent Logical Reasonably Serious
structure of structure & clear weakness in
comprehensive good quality structure of structure of
Introduction introduction introduction introduction introduction,
with evidence with good with grammar & 10
(Half - one page) and excellent grammar & satisfactory spelling
grammar & spelling grammar & errors.
spelling spelling
(8-10) (6-7) (4-5) (0-3)

The excellent Good research The reasonable Poor

research effort effort research effort research
was shown by shown by was shown by effort
having details having discussing shown by
Contents/research
discussion with brief less details providing
effort
practical discussion and practical details in 50
examples with examples general
(Two-four pages)
practical without
examples practical
examples.
(46-50) (35-45) (25-34) (0-24)

Well organised, Well organised Well organised Weakly

demonstrates but but organised.
logical demonstrates demonstrates
Overall
sequencing and illogical illogical
presentation and 10
sentence's sequencing or sequencing or
quality of work
structure sentence's sentence's
structure. structure.
(8-10) (6-7) (4-5) (0-3)

One of the More than one No proper

Every group
groups group cooperation
Group member
member members among 5
Contribution contributes
contributes contribute less group
100%
less than 100% than 100% members.

Strictly followed TAR UC TAR UC No proper

TAR UC Harvard Harvard Harvard citation or
Referencing Referencing Referencing references
Citation /
used applied used 5
Referencing
with few Wrongly
mistakes
(4-5) (3) (2) (1)
INDIVIDUAL ASSESSMENT
Conclusion

(Half – one page)

Excellent Logical Reasonable, Poor or
Name of students: conclusion structure & clear structure serious
1. Chong Yen Yen of good quality analysis weakness in
comprehensive analysis analysis 20
2. Kishan Danniel
analysis
Bin Hussen
3. Soo Jing Kai (17-20) (14-16) (10-13) (0-11)
4. Shee Khai Jien
5. Wong Choy Lei
6. Yap Zhi Hang
Total Marks : 100
 REPORT WRITING
Part 1: Group Assessment
1.0 Introduction
CMP1 (2001-2010) and CMP2 (2011-2020) have expanded and maintained market
integrity and stability in the last two decades according to Securities Commission (SC)
chairman Syed Zaid Alber (Ong 2021). Like CMP1, CMP2 sought to produce a
competitive capital market to assist long-term national building initiatives via assisting
capital, investment, and development demands (MSFI 2020).

SC introduced CMP3 on September 21, 2021, with the goal of using it as a strategic plan
to expand Malaysia's capital market from 2021 to 2025 (Suruhanjaya Sekuriti 2021). The
following outcomes are anticipated from capital markets under CMP3 to help the economy
and its stakeholders develop: effectively mobilise capital, accomplish targeted regulatory
goals, as well as diversify, compete and differentiate to add value for all participants.

The strategy objectives will be stimulated by six development and regulatory thrusts to
achieve intended goals (Drew Network Asia 2021). Under development thrusts, there are
catalyzing competitive growth, empowering investors for a better future and shaping a
stakeholder economy. For regulatory thrusts, it embeds shared accountability in the
capital market and is supported by principles-based rules, prioritizes efficiency and
protects investor vulnerabilities, and embraces the digital era with the industry.

Three critical outcomes are mentioned in CMP3, which are relevant, efficient and
diversified. Relevant emphasized CMP3's development in the underlying economy and
its stakeholders, and how it aids in capital raising. Efficient signifies capital mobilization
in an efficient way that is guided by an evolving regulatory approach. Diversified means
distinguishing to create value for diverse participants through competition.
2.0 Development thrusts
2.1 Catalyses Competitive Growth
To transform Malaysia into a high-income economy, it needs to maintain a stable
existence in the global value chain with enterprises. Capital Market is a platform for
companies to raise funds and boost their business at every stage.

2.1.1 Push economic frontier

SC provides more avenues for early-stage businesses, such as angel investors, equity
crowdfunding (ECF) and early-stage VC funds (Suruhanjaya Sekuriti 2021). Besides, SC
intends to streamline the listing process and evaluate more options beyond IPO to
strengthen equity market efficiency for late-stage financing. SC envisions having
innovative bond markets, including alternative venues or platforms with unconventional
issuance processes and credit rating mechanisms.

2.1.2 Enabling a multi-layered market

SC aims to introduce innovative business models and instruments such as ECF, P2P
financing, DAX and IEO platforms to provide new ways for fundraising and investment.
The marketplace must be developed with advanced technology to provide efficiency and
cost saving to the marketplaces participants in different segments.

2.1.3 Facilitating diversity of the intermediation landscape

Malaysia’s Capital Market has not innovated during the past decade. Thus, SC seeks to
create more intermediary models to drive capital market innovation and provide greater
value to investors.

2.1.4 Expanding Risk Intermediation

SC is developing a framework to allow remote membership into the Malaysian derivatives
market, starting with trading participants to broaden market participation for greater
market dynamism. Besides, diversifying the suite of commodities, financial and equity
derivatives to build Malaysia’s Capital Market to become the trading destination for global
commodity traders.
2.2 Empowers investors for a better future
2.2.1 Widening investor segments' investment options
Empowering investors by developing a broader range of investment products and
services. To help investors make appropriate decisions as they age, SC has introduced
portfolio management schemes (PAMs) under private retirement schemes and target
date funds (TDFs). This provides investors more options for investment accumulation,
preservation, and decumulation (Phua 2021).

2.2.2 Promoting greater digital inclusion among investors

SC's empower for digitalisation initiative seeks to entice more investors to embark on a
digital journey. However, efforts must be made to ensure vulnerable groups such as
elderly and rural investors are included (Phua 2021).

2.2.3 Strengthening regulatory framework

Regulatory frameworks must be strengthened to ensure investor protection and
accountability. Hence, SC and Bank Negara Malaysia (BNM) are working towards
examining and consolidating the licensing requirements for financial planners and
financial advisers. This will ensure financial professionals in Malaysia are qualified and
able to provide suitable advice to investors (Suruhanjaya Sekuriti 2021).

2.2.4 Improving efficiency via market infrastructure

SC will perform a feasibility study on infrastructure needs that will boost Malaysia's fund
management sector. This initiative will encourage more investors to invest in Malaysia's
fund management sector, thereby boosting the country's economic development and
facilitating growth of cross-border fund distribution (Suruhanjaya Sekuriti 2021).

2.3 Shaping a stakeholder economy

2.3.1 Expanding the reach of ICM to broader stakeholders of the economy
The ICM is focused on Shariah-compliant funding needs of micro, small and medium
enterprises (MSMEs) (Phua 2021). Additionally, SC and ICM are collaborating with
appropriate players in the halal economy to focus on Shariah-compliant financial models
and procedures, enabling more efficiency in funding the transition to net-zero
(Suruhanjaya Sekuriti 2021).
2.3.2 Mobilising capital to sustainable and responsible businesses
Businesses can engage in net-zero transactions and access funding from different
providers throughout green technology or infrastructure development. To promote
transparency, firms should disclose information about risks and rewards of their carbon
initiatives and the cost of capital, including disclosing management, data, environmental,
social, and governance (ESG), investment decision-making, and green-washing risks
(Suruhanjaya Sekuriti 2021).

2.3.3 Embracing collaboration and innovation for growth

To improve ICM's global thought leadership to promote greater alignment of capital
market activities with maqasid al-Shariah (Phua 2021). For example, Fintech is a catalyst
for innovative solutions, with a focus on the halal economy, SRI, and Islamic social
finance, allowing for further growth and expanding ICM offerings (Suruhanjaya Sekuriti
2021).

3.0 Regulatory Thrusts

3.1 Embeds Shared Accountability in The Capital Market
To meet stakeholders' needs and expectations, SC will improve its regulatory framework
to achieve agility, growth and innovation.

3.1.1 To promote responsible businesses

SC focuses on strengthening and building effective board leadership, bringing long-term
value creation and expectations for stakeholders. Besides, strengthen and develop the
capacity of ESG to ensure corporations can react to sustainability issues.

3.1.2 Inculcating greater self-regulation

Providing protection and maintaining investors' confidence in the capital market is crucial
for SC. Thus, by formulating strategy and guidance to incentivise self-reporting and self-
ratification to reduce losses to investors caused by misconduct.

3.1.3 Encouraging greater investor activism and advocacy

By encouraging using digital tools, general meetings between the board and shareholders
become more meaningful (Lee 2021). Besides, SC, BNM and other members of FEN will
initiate initiatives under Malaysia National Strategy for Financial Literacy, to increase
Malaysia's financial literacy and promote responsibility of financial behavior.

3.1.4 Moving Further towards principles-based regulations

SC will review regulations and formulate provisions for principles-based regulations,
which enable regulated entities by implementing strategies to engage while being able to
guide and educate every involved participant in the market, providing better transparency.

3.2 Priorities Efficiency and Outcome

SC tries to refine its regulatory approach to better resolve, supervise and identify capital
market irregularities to ensure a more effective deterrent against market misconduct.

3.2.1 Focus on emerging investor vulnerability

Root causes of vulnerability states could be multifaceted such as education level and
social-economic background. SC tries to enhance support for dissemination of investor
education programs to increase awareness and understanding of risks which will affect
vulnerable investors. Establishing legislation and regulation can monitor and enforce
methods in response to any misconduct involving vulnerable investors (Suruhanjaya
Sekuriti, 2021).

3.2.2 Fit-for-purpose regulatory architecture

Improving regulatory framework structure and architecture for the market achieves strong
regulatory performance. CMP3 regulations level the equity competitive environment for
all financial intermediaries which promote business conduct supervision and balance the
rising competition on the capital market with financial market’s systematic and stability.

3.2.3 Supervisory efficiency

SC expands its supervisory coverage of the whole industry and strengthens the regulatory
capacity on new risks brought by socially responsible investment and innovation. Also,
SC plans to increase supervision on the culture and conduct of market participants. SC
and AOB (Audit Oversight Board) are improving by using the SupTech capabilities to
enhance supervisory efficiency.
3.2.4 Swift, effective and targeted enforcement
SC prioritizes resources for market segments that are vulnerable to abuse and for
misbehavior that impairs fair and orderly market operations to establish a fair market with
effective regulation for accountability and deterring misconduct from any individual and
entities. Besides, SC seeks to improve implementation for more rapid, efficient and
targeted enforcement (i3investor, 2021).

3.3 Embracing digital age

Technology adoption brings new risks like cyber risks and data breach risks. Thus, SC
provides ways to manage these risks effectively and efficiently by improving regulations
around technology-enabling activities and revamping its internal technology capabilities.

3.3.1 Catalysing Regulator Technology (RegTech)

RegTech solutions address issues before they grow into large issues which mitigate
reputation damage and are usually used in transaction monitoring, anti-money laundering
screening, and fraud prevention. RegTech can mitigate significant risks and improve
overall efficiency as well as enable market participants to detect failures promptly
(TheEdge 2021).

3.3.2 Navigating Emerging technology risks

The public needs to improve their cyber security awareness, and market participants need
to strengthen their abilities by having cloud security and employee training sessions to
defend against cyber-attacks. There should also be cooperation between SC and the
industry to develop an approach that enhances cyber defense in the market, such as
using AI models to predict and respond to unknown cyber threats (Thesun, 2021).

3.3.3 Integrating data and technology across the regulatory value chain
SC is using RegTech and SupTech to improve risk management and regulatory tasks
with regulated entities. SC created a roadmap to optimize stakeholder engagement,
enhance predictive capabilities, and increase efficiency through automation by using
RegTech and SupTech. SC expanded its use of technology which benefited the broader
industry (Thestar, 2021).
4.0 Latest updates of CMP3
Since the release of CMP3, there have been some updated progress or implementations
in Malaysia.

4.1 Alternative trading marketplaces

Previously, there were no operating IEOs in the market. On 23 March 2023, SC
announced the registration of two IEO operators in Malaysia, namely Kapital DX and Pitch
Platforms (SC 2022).

The companies will promote responsible innovation in the digital assets space in
Malaysia. SC requires the IEO operators to conduct due diligence on the digital tokens
issuer, review its proposal and disclosure in the whitepaper, and verify the issuer’s digital
value proposition before hosting the digital token issuance (Suruhanjaya Sekuriti 2022).
They are allowed to provide alternative platforms for companies to raise funds for up to
RM100 million from retail, sophisticated, and angel investors (Goh 2022). This may
encourage the innovation of Malaysian start-ups which benefits the country’s economy.

4.2 Shariah-compliant funding for MSMEs

In November 2022, SC announced four new digital initiatives for MSMEs including
registration of new Shariah-compliant ECF and peer-to-peer (P2P) market operators,
Islamic fintech accelerator programme (FIKRA), registration of new Recognised Market
Operators-Digital Asset Exchange (RMO-DAX), and RM30 million Digital Innovation Fund
(DIGID) (FintechNewsMalaysia 2022). SC seeks to enhance Malaysia's Islamic fintech
ecosystem, increase capital market vibrancy and encourage capital market digitalisation
through these initiatives.

In May 2022, Funding Societies announced the launch of its Shariah-compliant trade
financing solutions based on Commodity Murabahah (Tawarruq) (Cynthia 2022). This is
aligned with CMP3 to provide fundraising opportunities for the underserved while
creditworthy MSMEs, with a focus in the halal economy.

4.3 Strengthening the ecosystem for sustainable and responsible investment (SRI)
This initiative aims to promote SRI practices by increasing awareness and knowledge of
ESG considerations among investors and issuers. To achieve this goal, CMP3 proposed
to mobilise capital to sustainable and responsible businesses. Subsequently, Bursa
Malaysia enhanced the reporting requirements by including the introduction of a
sustainability reporting framework for listed companies, and the establishment of an ESG
labelling scheme for investment products (Chung, 2022).

The sustainability reporting framework aims to provide investors with reliable and
comparable information on the ESG performance of listed companies. This information
can help investors make informed decisions about the long-term sustainability and
viability of a company, as well as its potential impact on the environment and society.

The ESG labeling scheme provides clear and standardized information on the ESG
characteristics of investment products, helping investors identify products that align with
their values and investment objectives (EcoBusiness, 2023).

(1995 words)
GROUP REFERENCES LIST
5.0 Reference

Cynthia 2022, Funding Societies Introduces Its Shariah-Compliant Trade Financing

Solution For MSMEs, viewed 13 March 2023,
<https://www.businesstoday.com.my/2022/05/25/funding-societies-introduces-its-
shariah-compliant-trade-financing-solution-for-msmes/>.

Chung, H 2022, Bursa Malaysia adds climate change reporting to sustainability reporting
framework for companies on Main, ACE Markets, viewed on 25 March 2023,
<https://www.theedgemarkets.com/article/bursa-malaysia-adds-climate-change-
reporting-sustainability-reporting-framework-companies>.

Drew Network Asia 2021, The Third Capital Market Masterplan, viewed 8 March 2023,
<https://www.drewnetworkasia.com/newsroom/malaysia-the-third-capital-market-
masterplan/https://www.drewnetworkasia.com/newsroom/malaysia-the-third-capital-
market-masterplan/>.

EcoBusiness, 2023, What does the new TCFD-aligned guidelines for climate risk
disclosure and management mean for Malaysia’s businesses?, viewed on 25 March
2023, <https://www.eco-business.com/news/what-does-the-new-tcfd-aligned-guidelines-
for-climate-risk-disclosure-and-management-mean-for-malaysias-businesses/>.

Esther Lee, CMP3: SC looking to encourage RegTech adoption and facilitate its
innovation, 21 Sep 2021, The Edge Market, viewed on 11 March 2023,
<https://www.theedgemarkets.com/article/cmp3-sc-looking-encourage-regtech-
adoption-and-facilitate-its-innovation>.
FintechNewsMalaysia 2022, SC Unveils Four New Digital Initiatives for MSMEs, Mid-Tier
Companies, viewed 15 March 2023, <https://fintechnews.my/33176/funding/sc-unveils-
four-new-digital-initiatives/>.

Goh 2022, Malaysia securities regulator okays first initial exchange offering operators,
viewed 12 March 2023, <https://www.asiaasset.com/post/25769-scieo-gte-0324>.
KLSE.i3investor 2021, “PublicInvest Research Market Strategy - Capital Market
Masterplan 3 - Laying The Groundwork”, viewed 10 March 2023,
<https://klse.i3investor.com/web/blog/detail/PublicInvest/2021-09-22-story-
h1571672929-
PublicInvest_Research_Market_Strategy_Capital_Market_Masterplan_3_Layin>.

Lee Weng Khuen, 2021, Addressing push factors for capital market development , viewed
on 25 March 2023, <https://www.theedgemarkets.com/article/addressing-push-factors-
capital-market-development>.

MSFI 2020, Capital Market Masterplan 2, viewed 8 March 2023,

<https://www.msfi.com.my/policies-capital-markets/>.
Ong, S 2021, SC launches five year capital market masterplan support malaysia next
stage growth, viewed 8 March 2023, <https://www.theedgemarkets.com/article/sc-
launches-fiveyear-capital-market-masterplan-support-malaysias-next-stage-growth>.

Phua, PY 2021, Securities Commission Launches Capital Market Masterplan 3, viewed

9 March 2023, <https://www.skrine.com/insights/alerts/september-2021/securities-
commission-launches-capital-market-mast>.

Securities Commision Malaysia 2021, SC Launches five years capital market masterplan
to support Malaysia’s next stage of growth, viewed on 9 March 2023,
<https://www.sc.com.my/resources/media/media-release/sc-launches-five-year-capital-
market-masterplan-to-support-malaysias-next-stage-of-growth>.

Suruhanjaya Sekuriti 2022, SC REGISTERS TWO INITIAL EXCHANGE OFFERING

(IEO) OPERATORS, viewed 12 March 2023,
<https://www.sc.com.my/resources/media/media-release/sc-registers-two-initial-
exchange-offering-ieo-operators>.

Suruhanjaya Sekuriti 2021, Capital Market Masterplan 3, viewed 9 March 2023,

<https://www.sc.com.my/upload/cmp3/files/basic-html/page30.html>.
Suruhanjaya Sekuriti 2021, Capital Market Masterplan 3, viewed 9 March 2023,
<https://www.sc.com.my/upload/cmp3/CMP3.html>.

The Sun daily 2021, “SC: Capital market stakeholders should align focus, assess impact
to best cater to needs”, viewed 11 March 2023,
<https://www.thesundaily.my/business/sc-capital-market-stakeholders-should-align-
focus-assess-impact-to-best-cater-to-needs-HM9097393>.

The Star 2021, Building a relevant and diversified capital market, viewed 12 March 2023,
<https://www.thestar.com.my/business/business-news/2021/09/22/building-a-relevant-
and-diversified-capital-market>.
Part 2: Individual Assessment
NAME STUDENT 1: CHONG YEN YEN
STUDENT ID: 21WBR13649

By having Capital Market Masterplan 3 (CMP3), the capital market's strategic framework
for the economy and its stakeholders for the five years beginning in 2021 would be
improved. Relevance, effectiveness, and diversity are the three primary goals of CMP3.
Moreover, the CMP3 aims have been broken down into two categories—development
thrusts and regulatory thrusts—each of which has contributed three key capital market
techniques. the development of a stakeholder community, empowering investors for a
brighter future, and fostering competitive growth are the main development thrusts.

The development of Malaysia into a high-income economy has been fueled by the
presence of businesspeople and corporations. The capital market then stimulates
competitive growth through specialized and efficient funding like ECF, angel investors,
and SAFE notes since supporting the enterprises fosters market rivalry that pushes the
boundaries of the economy.

CMP3 created strategies to equip investors with the tools they need to make smarter
retirement planning decisions in the future. With the advent of PAMs and TDFs, the
decision-making process for investment selection and diversification is made simpler with
expertise and adequate access to information. The tool assists investors in building
wealth while planning for retirement as opposed to making low-return fixed deposits.

Sustainable and responsible investment (SRI) with the assistance of the Islamic Capital
Market (ICM) caters for shaping a broader stakeholders economy. It emphasizes long-
term value creation ranging from shareholders, employees and business partners to the
society, environment and community. In addition, the principles of the ICM are aligned
with SRI which it underlined in promoting good corporate governance.

Regulations are being pushed to embrace the digital era, prioritize efficiency and results,
and embrace shared accountability. One of the goals is to embedding shared
accountability, which SC encourages businesses to express concerns about.
Accountability is a two-sided concept where firms are responsible to their stakeholders
by adhering to rules and best business practices, while third parties are responsible for
their actions.

Efficiency and outcomes are given first priority, but protecting investors' legal and
regulatory vulnerabilities is also taken into mind. The appropriate regulatory framework
offers a foundation for competition for all intermediaries. The supervisory effectiveness is
higher and makes use of innovative technologies.

Some capital market structural elements have altered as a result of the faster
technological revolution. The tactics of compliance regulatory technology (RegTech),
navigating emerging technological hazards, and integrating data and technology across
the conventional value chain were all necessary to embrace the digital age.

According to Suruhanjaya Sekuriti 2021, a number of strategies have been put out that
allow for increased investment. The regulatory framework for early-stage financing is one
of the many ways SC strives to protect the interests of issuers and investors. It
encourages lead investors to contribute with confidence, and as a result, their decision
encourages other investors to follow suit and commit capital, boosting the likelihood that
the fundraising effort will be successful.

SC takes the lead in CMP3 to move towards greater digital inclusivity in response to the
identification of the digital constraint. As a result, there should be more emphasis on
vulnerable groups and the development of digital support hubs, education programmes,
and age-tech financial services (Suruhanjaya Sekurity 2021). This move will affect people
from all walks of life, which will immediately lead to a beneficial outcome on the stock
market because investing is no longer limited to young people and adults. As a result,
those who participate in the stock market will advance, and getting rich is never a problem
because of age. However, one major worry in this digital age has been the problem of
technological hazards.

The significant point is promoting greater transparency in the ESG data to the market
through disclosure (Suruhanjaya Sekurity 2021). SC encourages governance among
credit and ESG rating organizations to guard against the dangers of greenwashing and
openness of ESG data suppliers. This has always been a major source of worry for
investors since the exposure of unhidden ESG data undermines investor trust and causes
the market to decline. Investors have recently been more aware of the significance of
ESG compliance for firms as this is a global issue. The ESG problem may have a negative
effect on a company's image and share price, losing the faith of investors and putting the
sustainability of the company at danger. A violation of the ESG regulations could result in
severe fines and a lack of liquidity, which would harm the dividend policy and the viability
of the business. As a result, investors are more confident in predicting the long-term
viability of organizations because of the increased availability of ESG data.

SC also encourages regulated enterprises to self-report and self-correct in order to

reduce wrongdoing in the capital market that undermines investor confidence
(Suruhanjaya Sekurity 2021). This is because of the fact that SC recognition is insufficient
to stop commercial misbehavior on its own. The wrongdoing can be identified sooner via
self-reporting and self-rectification, and steps are made to reduce investment losses. This
may be a motivator for investors to use the CMP3 strategy since it allows for quicker
identification of corporate wrongdoing and the resulting mitigation of investment losses.

STUDENT 1 REFERENCES LIST

Suruhanjaya Sekurity 2021, Capital Market Masterplan 3, viewed 25 March 2023,
<https://www.sc.com.my/api/documentms/download.ashx?id=99798151-53e6-4809-
b9de-6e2f094202b9>.
NAME STUDENT 2: KISHAN DANNIEL BIN HUSSEN
STUDENT ID: 21WBR11396
Through enhancing access to investment possibilities for all Malaysians, the
Capital Market Masterplan 3 (CMP3) in Malaysia intends to build a more inclusive and
diverse capital market. The CMP3 presents a roadmap for several efforts that can aid in
boosting the number of investors in Malaysia's capital market. This is done by several
efforts such as the introduction of Alternative Market Platforms. To help small and
medium-sized businesses raise funding, CMP3 advises the establishment of alternative
market platforms (SMEs). These platforms give investors new investment opportunities
by enabling SMEs to obtain cash through equity or debt securities. Retail investors,
especially those who might not have the funds to invest in traditional markets, now have
new investment choices thanks to the introduction of alternative market platforms.
The establishment of a Digital Investment Management Framework is another
factor to achieve the objective of CMP3. To support the expansion of robo-advisory
services, CMP3 advises the creation of a digital investment management framework.
Robo-advisory services give small-scale investors cheaper access to expert portfolio
management and financial guidance. More people may be able to participate in the capital
market by lowering entry barriers with the availability of digital investment management
services for retail investors.
Furthermore, CMP3 also focuses on introduction of Shariah-compliant Investment
Products. To meet the demands of Muslim investors, CMP3 suggests expanding the
availability of Shariah-compliant investment goods. This gives investors more options for
investments that are consistent with their values and beliefs. More Shariah-compliant
investment products are something CMP3 wants to provide in order to draw in a wider
variety of investors to the capital market.
On top of that, CMP3 includes the implementation of Investor Education Programs.
To increase Malaysians' awareness and understanding of the capital market, CMP3
advises the establishment of investor education programmes. These initiatives can boost
investors' confidence and assist them in making well-informed investment decisions.
CMP3 wants to encourage more people to invest in the capital market by offering
education and training.

In conclusion, CMP3 offers a road map for projects that can assist all Malaysians
have more access to investment possibilities. CMP3 intends to build a more accessible
and diverse capital market, allowing for more individuals to invest, by introducing
alternative market platforms, digital investment management services, Shariah-compliant
investment products, and investor education initiatives. Besides that, CMP3 also can
increase capital raising opportunities, luring more international investors, expanding
access to investment options, and enhancing corporate governance standards which
strengthens the Malaysian economy. These activities may contribute to the development
of a more active and efficient capital market, which may benefit the economy as a whole.
NAME STUDENT 3: SOO JING KAI
STUDENT ID: 21WBR13652

SC (Securities Commission) released the CMP 3 (Capital Market Masterplan 3) is aiming

to establish a more diverse capital market and enable the economic growth with efficiency
and sustainable. CMP3 objectives had been outlined into two sections which are
development thrush and regulatory thrusts where each of them divide into 3 core
approaches. The development thrust aim to catalysing the competitive growth, shaping
the stakeholder economy and empowering investors.

Malaysia as the biggest Shariah bond market, by introduce new intermediary models and
evaluate mechanisms to make the bond market more inclusive of SME company. Also,
SC aims to catalyses competitive growth by explore new ways to effective domestic
funding like Angel funds and Angel syndication lists for early-stage financing of business.
Next, shaping a stakeholder economy is another focus objective under the
development thrust. Mobilising capital to sustainable and responsible investment (SRI)
with the assistance of the Islamic Capital Market (ICM) in order to broader stakeholder of
the economy. Also, provide an approach for transition financing and wider choice of
funding escalators for companies committed in Malaysia.

Furthermore, CMP3 try to empowering investors for a better future through widening
investment options across more investor segments and provide accessible investment
advices. By review the investor’s classification framework to assess eligibility for
accredited investor category by considering criteria like: investor knowledge and
investment experience as well as consider measures to increase inclusion among the
mass affluent. Also, promote the introduction of PAMs (portfolio account management
schemes) within PRS (private retirement schemes) to have more investment selection
and diversification decisions. This action can helps individual to accumulate their wealth
with develop new investment solutions rather than put their funds in fixed deposit while
retiring period.
Regulatory thrust is aiming to embedding shared accountability, embracing digital age
and prioritising outcomes. By promoting responsible business with develop capacity for
ESG leadership in corporates and instill idea of self-regulation to have more voluntary of
self-reporting, these actions can improve the shared accountability of corporate in
capital market.

Next, enhances supervisory which focus on protecting investors against vulnerabilities

and prioritising efficiency and outcomes at the same times. Cooperate with BNM and
AOB could having an effective and targeted enforcement to increase the efficiency and
effectiveness of market regulation.

The revolution of technology provide convenient and improve the efficient of the capital
market. In order to embracing the digital age, SC encourage the industry to adopt used
of RegTech and integrating technology across the regulation to augment policymaking
and risk surveillance. SC develops ways to strengthen industry cyber defenses to mitigate
the risk and addressing emerging technology risks.

In the nutshell, CMP3 is a holistic and ambitious plan which provide a road map for
assisting Malaysia capital market have a bright future which involves many aspects of
capital market. CMP3 intend to establish an accessible and diverse capital market which
able more individual to invest in with more access to invest options, enhancing corporate
government standards thereby strengthening Malaysia economy. Therefore, SC has not
lost its role as the primary regulator of capital markets and introduce suitable measures
and provide sufficient supervision in order to maintain stakeholders and capital market
keep on a straight, narrow path.
(530 words)

STUDENT 3 REFERENCES LIST

Cheah Chor Sooi, Focus Malaysia, 2021, “SC unveils 5-year capital market masterplan
as M’sia’s next growth pillar”, viewed 16 March 2023, < https://focusmalaysia.my/sc-
unveils-5-year-capital-market-masterplan-as-msias-next-growth-pillar/>.

Official Portal Of Ministry Of Finance Malaysia, 2021, “Capital Market Master Plan 3
(CMP3) Launch”, viewed 15 March 2023, <
https://www.mof.gov.my/portal/en/news/speech/capital-market-master-plan-3-cmp3-
launch>.
Shazni Ong, The Edge Market, 2021, “CMP3 outlines strategic initiatives to transform
capital market”, viewed 15 March 2023, <https://www.theedgemarkets.com/article/cmp3-
outlines-strategic-initiatives-transform-capital-
market#:~:text=These%20strategic%20thrusts%20focus%20on,Malaysia%20(SC)%20c
hairman%20Datuk%20Syed>.
NAME STUDENT 4: SHEE KHAI JIEN
STUDENT ID: 21WBR13651

SC released the third capital market plan (CMP3) in 2021. CMP3 serves as the strategic
framework in the growth of the capital market of Malaysia in the next five years (2021-
2025), making sure that Malaysia’s capital market can achieve the three main outcomes
stated in the CMP3, which is relevant, efficient and diversification. To archive the outline
stated in CMP3, SC had launched six development thrusts and regulatory thrusts as the
strategies to the growth of the capital market of Malaysia (Suruhanjaya Sekuriti 2021).

One of the development thrusts is catalyzing competitive growth. Companies or firms

looking for fundraising in the capital market to expand their business. Therefore, the
capital market has to be efficient and advanced to meet all of the companies funding
needs in the different business stages. Thus, the CMP3 announced there will be more
avenues for the early-stage business, such as angel investors and crowdfunding. When
it comes to late-stage financing, SC tends to simplify the listing process and evaluate
more options beyond IPO, to improve the efficiency of the equity market. Other than that,
SC will expand the risk intermediaries to attract the worldwide investors to invest in
Malaysia capital market.

SC also focuses on empowering a brighter future for the investors by expanding a broader
range of investment products and services, such as PAMs and TDFs, providing the
investors more options for investment accumulation, preservation, and decumulation.
Apart from this, SC and BNM work together on examining the licensing requirements of
financial advisers, to make sure investors can benefit from the professional and suitable
advice by the financial advisers. Besides, SC supports high-CG enterprises, ethical and
promotes SRI and ICM financing. By using sustainable resources, more companies are
having the chance to become net-zero. Net-zero goals require funding from sources with
different risk tolerances. This helped the SC subsidize Malaysian net-zero transitions.
ICM targets halal and Shariah-compliant MSMEs. Fintech enables Halal economy, SRI,
and Islamic social finance solutions to boost ICM services.

SC has also set out three key regulatory priorities for better regulation in the capital
market. One of the thrusts is embedded shared accountability in the capital market. SC
focuses on strengthening and building an effective board leadership to promote
responsible business practices. Make sure it will bring positive value creation to the
stakeholders. SC also encourages the firms to have self-reporting and self-ratification, to
protect the investors from having losses caused by any misconduct. To provide better
transparency in the capital market, SC will review regulations and formulate provisions
for the principles-based regulations, which enables regulated entities by implementing
strategies to engage and being able to guide and educate every involved participant in
the market.

SC focuses on protecting investors against vulnerability. SC collaborates with industries,

purpose on identifying the investors vulnerability and providing the best practices to the
vulnerable investors (Shazni 2021). SC also enhances the spread of education programs,
which enables the vulnerable investors to increase their awareness and understanding
about the risks. In the digital age, investors might be facing cyber security risk and data
breach risk. SC promotes solutions to help manage the emerging risks, enhancing the
protection of investors. Solutions such as RegTech helps to monitor the transaction and
fraud prevention, helps the market participants detect failure as soon as possible. To
enhance the security, SC drafted a roadmap by using RegTech and SupTech, to enhance
predictive capabilities and increase efficiency through automation.

Overall, the CMP3 is a very sophisticated and effective plan in helping the growth of the
capital market. Thus, it will attract more investors to invest in the capital market. SC works
hard on developing a wider range of financial products, which helps investors have more
choice to choose their suitable investment based on their risk tolerance. And strengthen
the regulatory framework in ensuring the quality of the financial advisers, enhance the
protection against investors and make sure the investors can receive professional and
suitable advice or solutions from the professional.

Besides, SC also implemented investment education programs. Throughout these

programs, professional financial knowledge will be provided to enhance the investor’s
financial knowledge, improve overall professionalism in the capital market. Other than
that, In the CMP3, it also mentioned that the SC will strengthen cyber security, which
gives a better protection to the investors when dealing with the cyber security attack,
reducing investors from losing cause by these misbehavior activities.
In conclusion, the capital market will become completer and more advanced in technology
after the release of CMP3, which is a dream for all of the market participants, therefore it
will definitely attract more investors to invest into the capital market, so as to achieve a
good cycle.

(771 words)

STUDENT 4 REFERENCES LIST

1) Shazni Ong 2021, SC launches five-year Capital Market Masterplan to support
Malaysia’s next stage of growth, viewed on 16 March 2023,
<https://www.theedgemarkets.com/article/sc-launches-fiveyear-capital-market-
masterplan-support-malaysias-next-stage-growth>.

2) Suruhanjaya Sekuriti 2021, Capital Market Masterplan 3, viewed 16 March 2023,

<https://www.sc.com.my/upload/cmp3/CMP3.html>.
NAME STUDENT 5: WONG CHOY LEI
STUDENT ID: 21WBR13362
In conclusion, CMP3 is designed to be a strategic framework for capital market growth
from 2021 to 2025. The three main goals for improving CMP3 are relevant, efficient, and
diversified. The digitalization of industries is the strategic framework in CMP3, and digital
can change the business structure and business model. There are 3 development thrusts
and 3 regulatory thrusts to facilitate a capital market:

Development thrusts
The first development thrust is to catalyse competitive growth in diverse markets and
intermediation ecosystems by facilitating fundraising. CMP3 improves the efficiency of
the stock market for advanced financing by simplifying the enrollment process and
evaluating solutions beyond the IPO.

Besides, CMP3 aims to empower all Malaysian investors to invest for the future while
also facilitating digital inclusion. Malaysians are capable of raising children and planning
for retirement. It has expanded the number of options for accumulating, preserving, and
declaring assets, such as PAMs under private retirement plans and the advancement of
due date saves TDFs, which legitimately reduce risk and attract more investors.

Moreover, through SRI and the ICM, they intend to shape a stakeholder economy by
assisting ethical companies with financing intermediation and promoting Shariah-
compliant financial models. Overall, CMP3 presents opportunities for more people to
invest in the capital market while promoting sustainable and responsible practices.

Regulatory thrusts
Regulatory thrusts are about changing the market landscape and trends of the capital
market, where CMP3 aims to embed greater shared accountability in the capital
market in order to promote responsible business practices and meet the public's and
investors' expectations for sustainability. The plan emphasises the importance of
organisations integrating ESG principles into their culture and operations, as well as
encouraging self-reporting and self-correction to reduce misconduct. The SC also intends
to improve regulatory transparency and communicate on acceptable behaviour on a
regular basis. (SC 2021)
Besides, SC prioritizes efficiency and success in protecting investor vulnerabilities, as
they aim to ensure effective laws, regulations, oversight, and enforcement measures.
Intermediaries are expected to identify investor vulnerabilities and take appropriate
measures to address them. The CMP 3 regulations aim to level the playing field between
digital competitors and established firms by enhancing supervisory efficiency.

Embracing the digital age has driven effective regulatory solutions, such as regulatory
technology and data integration, while also increasing the need for corporate rules on
cloud security and employee training to prevent financial harm. Strategic initiatives like
sustainability and investor protection remain important as technology becomes more
ingrained in Malaysians' daily lives.

CMP3 gives way for more people to invest

From my perspective, CMP3 helps the Malaysian capital market grow through a variety
of initiatives, broadens investment opportunities via:

Implementation of investment education programs

CMP3 focuses on improving investor education and financial literacy, with a special
emphasis on vulnerable investors. Investor education programmes, the implementation
of Malaysia's National Strategy for Financial Literacy, and digital support hubs are among
the initiatives under CMP3 (Phua 2021). Besides, SC intends to use social media to warn
of potential scams and unlicensed activities which assists investors in making informed
investment decisions while also reducing investment risk. In addition, CMP3 offers a
range of retirement plans to meet the diverse needs of different investors.

Significance of transparency and disclosure

CMP3 highlights the significance of transparency and disclosure in the regulatory
framework to enhance investor confidence and attract investments. Providing more
information about regulatory principles and decision-making frameworks can help
regulated entities comply with regulations. By having transparency and disclosure,
investors would have more sufficient information and direction to make investment
decisions.
Introduction of new investment products
CMP3 prioritises the introduction of new and innovative investment products to meet the
needs of various types of investors, including the mass-affluent segment. Commodity
derivatives, cross-listed index futures, PAMs within PRS, and TDFs are among the new
investment products. Investors will have more opportunities to diversify their portfolios,
align their investment choices with their risk tolerance and investment goals, and
potentially improve their investment outcomes by providing a broader range of investment
options. CMP3 encourages more people to invest and grow their wealth by catering to
the various needs of investors.

Promotion of Financial Technology(FinTech) Solutions

To make it easier for investors to access the capital market, includes the implementation
of capital-efficient intermediary models like digital-only brokers and algo-based brokers,
which can make investing more accessible and cost-effective for investors. Furthermore,
CMP3 intends to offer digital solutions that make it easier for issuers, investors, and
intermediaries to access existing and new markets. There is also an emphasis on data-
sharing ecosystems, which can provide investors with account aggregation across
multiple service providers, allowing them to make better investment decisions
(Suruhanjaya Sekuriti 2021). With FinTech solutions, it makes investing more accessible
and provides more opportunities for people to grow their wealth.

(790 words)

STUDENT 5 REFERENCES LIST

1. Suruhanjaya Sekuriti 2021, CAPITAL MARKET MASTERPLAN 2021-2025, viewed 20
March 2023, <https://www.sc.com.my/api/documentms/download.ashx?id=99798151-
53e6-4809-b9de-6e2f094202b9>.

2. Phua 2021, Securities Commission Launches Capital Market Masterplan 3, viewed 25

March 2023, <https://www.skrine.com/insights/alerts/september-2021/securities-
commission-launches-capital-market-mast>.
NAME STUDENT 6: YAP ZHI HANG
STUDENT ID: 21WBR13564

Summary
Capital Market Masterplan 3 (CMP3) was created to enhance the strategic framework of
Malaysia’s capital market from 2021 to 2025 with 3 development thrusts and 3 regulatory
thrusts. The 3 key outcomes of CMP3 are relevant, efficient and diversified.

Development thrusts
Catalysing competitive growth is the first development thrust in CMP3. It aims to push the
Malaysian economy frontier with various financing options for companies at every stage.
It also wants to enable a multi-layered market with different alternative marketplaces such
as ECF, P2P financing, and IEOs. CMP3 also seeks to facilitate diversification of the
intermediation landscape and expand risk intermediation.

Moreover, CMP3 wishes to empower investors for a better future with various initiatives.
CMP3 plans to introduce PAMs under PRS and TDFs to widen the investment options.
CMP3 also aims to promote digital inclusion for vulnerable groups with investor education
programmes and age-appropriate technology. SC and BNM are working towards
consolidating the licensing requirements for financial planners and financial advisors to
strengthen the regulatory framework. SC will also conduct a feasibility study on
infrastructure needs to boost Malaysia's fund management sector.

Furthermore, CMP3 envisions shaping a stakeholder economy. The promotion of

Shariah-compliant funding in the halal economy was mentioned in CMP3 to expand the
reach of ICM. To mobilise capital to sustainable and responsible businesses, CMP3
intends to improve the efficiency of funding transition to net-zero energy and promote
greater market transparency through disclosures. CMP3 also wants to embrace
collaboration and innovation for growth by improving ICM's global thought leadership.

Regulatory thrusts
Next, CMP3 intends to embed shared accountability in the capital market to build integrity.
To promote responsible business, CMP3 will strengthen the board leadership and the
capacity of ESG to create long-term value and ensure companies can react to
sustainability issues. CMP3 seeks to inculcate greater self-regulation by formulating
strategy and guidance to incentivise self-reporting to reduce investors’ losses caused by
misconduct. CMP3 also wants to encourage greater investor activism and advocacy by
encouraging the use of digital tools. CMP3 aims to move further towards principles-based
regulations and enhance the transparency of SC’s regulatory approach.

Additionally, prioritising efficiency and outcome is another regulatory thrust in CMP3.

CMP3 intends to enhance its focus on protecting vulnerable investors by enhancing
support for the dissemination of investor education programs and establishing
regulations. To improve the capital market’s regulatory architecture, SC will conduct a
joint study with BNM and review the licensing and registration framework. CMP3 aims to
enhance supervisory efficiency and efficacy in the culture and conduct of market
participants. CMP3 also seeks to enable swift, effective, and targeted enforcement by
enhancing digital enforcement capabilities and allocating resources more effectively.

The last regulatory thrust is embracing the digital age, which catalyses RegTech to
mitigate significant risks and improve overall efficiency. CMP3 seeks to navigate
emerging technology risks by developing an approach to enhance cyber defence. CMP3
also envisions integrating data and technology across the regulatory value chain using
RegTech and SupTech.

CMP3 gives way for more people to invest

CMP3 will facilitate the growth of the Malaysian capital market with various initiatives.
Most importantly, CMP3 provides wider investment opportunities by:

Introducing New Investment Products

CMP3 aims to introduce new and innovative investment products that cater to the needs
of different types of investors, including the mass-affluent segment. The products include
commodity derivatives products, cross-listed index futures, PAMs within PRS, and TDFs
(Suruhanjaya Sekuriti 2021). This is to meet the needs of different investor levels. As the
investment options increase, the investor can have more investment opportunities based
on their expected return and risk tolerance.

Improving Investor Education

CMP3 emphasises the importance of investor education and aims to enhance investors’
financial literacy, especially vulnerable investors. The initiatives are investor education
programmes, the implementation of Malaysia National Strategy for Financial Literacy, and
digital support hubs (Phua 2021). SC also wants to utilise social media to alert against
possible scams and unlicensed activities. I believe that these can help investors better
equip themselves with investment knowledge and risk awareness, thus widening their
investment opportunities.

Encouraging FinTech Solutions

CMP3 encourages the development of financial technology (FinTech) solutions to
improve investors' access to the capital market. The introduction of capital-efficient
intermediary models such as digital-only brokers and algo-based brokers is one of the
methods. CMP3 also seeks to provide a more efficient and cost-effective way for issuers,
investors, and intermediaries to access existing and new markets with digital solutions.
CMP3 mentions that the data-sharing ecosystem is expected to become increasingly
relevant in the future (Suruhanjaya Sekuriti 2021). Investors will have easier access to
account aggregation across multiple service providers, helping them to make more
informed investment decisions. By streamlining access to the capital market and
promoting a data-sharing ecosystem, CMP3 empowers investors with greater control and
knowledge, ultimately simplifying the investment process and extending investment
opportunities for people.
(804 words)

STUDENT 6 REFERENCES LIST

1. Phua 2021, Securities Commission Launches Capital Market Masterplan 3,

viewed 18 March 2023, <https://www.skrine.com/insights/alerts/september-
2021/securities-commission-launches-capital-market-mast>.
2. Suruhanjaya Sekuriti 2021, CAPITAL MARKET MASTERPLAN 2021-2025,
viewed 20 March 2023,
<https://www.sc.com.my/api/documentms/download.ashx?id=99798151-53e6-
4809-b9de-6e2f094202b9>.