Capital Market Reform in Asia contains a selection of papers that capture the essence of capital market reform in the Asian region, including important lessons from the global financial crisis of 2007–2009. It points to the need for Asian economies to adapt their capital market development strategies to rebalance growth by increasing mobilization of Asian savings for Asian investment.
Capital Market Reform in Asia is derived from 11 round table conferences on Capital Market Reform in Asia, jointly organized by Asian Development Bank Institute (ADBI) and the Organization for Economic Co-operation and Development (OECD).
The volume charts the progress of capital market development in Asia after the 1997–1998 Asian financial crisis, providing insights into capital market reform and the new challenges that have arisen since the global financial crisis of 2007–2009, amidst reforms to the international financial architecture.
Chapter 3: Capital Market Reform in Malaysia*
Capital Market Reform in Malaysia*
The deepening of capital markets expands the conduits for capital flows and, in so doing, can magnify the consequences arising from the transmission of financial contagion, regardless of whether they emanate from external or domestic sources. The Asian financial crisis of 1997–98 brought home the recognition across the region of the need for strengthening regulatory and institutional capacity to ensure resilience to volatile movements of capital flows. Adequate safeguards in the form of regulatory oversight over intermediary and market conduct and the ring-fencing of assets and liquidity obligations are, therefore, necessary tools in maintaining orderly markets and investor confidence.
In this context, it should be noted that the emergence of Asian capital markets and the establishment of ...