MIBA lauds move to create efficient financial markets
KUALA LUMPUR: Malaysian Investment Banking Association (MIBA) welcomes the government's efforts in 2014 Budget to ensure efficient operations of the financial markets with a clear regulatory framework.
Its chairman Tan Sri Azman Hashim said the move to relook existing laws with Bank Negara Malaysia to formulate the Netting Act will reduce credit risk and promote the derivatives market, thus cutting systemic risks in the domestic financial market as well as lower the cost of doing business.
MIBA also gave a thumbs up for the government's commitment to ensure that Malaysia's economy continues to expand at a strong pace while reducing the fiscal deficit.
"We applaud the initiatives to strengthen the financial market, including the Islamic capital market, and moving Malaysia in the direction of greater market sophistication and vibrancy," Azman said in a statement.
The budget's focus on sustainable growth momentum of the domestic economy, facilitating the long-term transformation of the economy and ensuring the sustainability of public finances is also in line with MIBA's views.
The association also welcomed the measures to implement the Environmental, Social and Governance Index to raise the profile of listed companies that have high socially-responsible practices, in a move to promote the country as a market for Social Responsible Investment.