Malaysian Prime Minister Anwar Ibrahim's WFE General Assembly Keynote Speech
Malaysian Prime Minister Anwar Ibrahim gave the following keynote address at the 63rd WFE General Assembly and Annual Meeting in Kuala Lumpur on 20 November after extending his greetings to senior executives and WFE members.
Ladies and gentlemen, I welcome you to Malaysia, and our capital, Kuala Lumpur, that serves as the country’s largest commercial and financial centre.
Malaysia has been a vital node in regional and international trade for centuries. Malacca was the nexus for Imperial Chinese, Malay Muslim Sultanate, Indian, European and other traders from around the globe.
So, you could say, we in Malaysia, are used to the world convening here, where we welcome each and every guest as a friend.
And your arrival, for the 63rd WFE General Assembly & Annual Meeting 2024 occurs at a most opportune time. November marks the two years since we established this Unity Government based on a values-based ethos termed Malaysia MADANI that aims to holistically fix and rebuild Malaysia’s foundations. Indeed, Malaysia is currently undergoing a profoundly transformative economic and social resurgence.
GDP growth for the third quarter of 2024 came to 5.3 per cent, bringing the nine-month expansion to 5.2 percent. This was notably larger than the previous corresponding period’s 3.8 percent.
The world has taken notice of the advantages of investing in Malaysia. This year alone, the world’s leading tech giants — from Amazon Web Services, to Google, Microsoft — have announced new investments and/or significant investment expansions totalling $16.9 billion.
Moreover, leading global ratings agencies have raised their outlook for Malaysia:
• S&P Global Ratings (A-), with a stable outlook
• Fitch Ratings (BBB+), with a stable outlook
• Moody’s (A3), with a stable outlook
In 2023, record approved investments (FDIs and domestic) came to 329.5 billion ringgit, a 23 per cent surge from the prior year, and the highest in this country’s history, so far. We’re feeling positive about 2024 too.
The driving force of this resurgent economy and revitalising nation is the foundation of my approach to public service.
Simply put, it is about a return to basic human values. Values that are at the heart of this country, and for which most of our 34 million people have lived their lives.
Sustainability. Prosperity. Innovation. Respect. Trust, and Ihsan — the Malay word for Care and Compassion. These are the values which underpin the ethos of Malaysia MADANI and which drive our economic revitalisation.
Our Ekonomi MADANI – MADANI being the Malay acronym for these basic values – is an economic framework announced last year, and which forms the building blocks for Malaysia’s structural reforms. With these building blocks, we seek to foster a spirit of greater national unity. And to promote good governance as well as an agile and collaborative public delivery system.
The Ekonomi MADANI framework encapsulates the fundamental principles and intent of our economy and our society. But it’s not only about achieving better numbers. For the Ekonomi MADANI is fundamentally about Malaysians, no matter their race, religion or station in life.
Under the Ekonomi MADANI we seek to improve critical tenets like developing human capital and enhancing our economic competitiveness responsibly — to ensure a just transition while we advance our economy.
Equally essential is the framework’s commitment to improving living standards. We seek to ensure our country’s wealth is shared equitably, by creating opportunities for social mobility.
We have developed several policy levers to support our pursuit of a fair and equitable Ekonomi MADANI — such as New Industrial Master Plan 2030, the National Semiconductor Strategy and the National Energy Transition Roadmap (NETR), amongst other key policies — to actively shape our economic trajectory.
The New Investment Incentive Framework, for example, aims to propel high-value activities, particularly in the electrical and electronics (E&E) sector, artificial intelligence (AI), supply chain ecosystems, and renewable energy. We are also catalysing growth in domestic industries with a committed direct investment of RM120 billion over the next five years, pledged by our Government-Linked Investment Companies (GLICs).
In the tabling of the National Budget 2025 last month, I announced Malaysia’s most far-reaching plans for public service reform. These include consolidating government agencies, increasing allocations for Malaysia’s anticorruption and competition commissions, and enhancing technology in public service delivery.
All these initiatives are aimed to shore up investor confidence and improve the ease of doing business in Malaysia, while also enhancing Malaysians’ living standards.
We believe Malaysia’s inherent strengths, coupled with the MADANI Government’s unwavering commitment to good governance, have set us on a new path of political and social stability.
Further evidence of our economic recovery this year is the rise in Malaysia’s equity market capitalisation, which has now surpassed RM2 trillion, equivalent to over $450 billion.
Central to sustaining this confidence is a robust regulatory framework that maintains a fair and orderly market, with diverse fundraising and investment opportunities across equities, derivatives, bonds and sukuk.
On this note, I must commend both the Securities Commission Malaysia and Bursa Malaysia for their continuous effort in ensuring that our capital market thrives and remains attractive to investors.
In the constant evolution and pursuit of a dynamic capital market, it is essential to recognise that capital market leaders play a crucial role in shaping the direction of business and society. Operating today’s exchanges brings forth seemingly conflicting challenges: balancing between returns for investors, promoting social good and navigating disruptive trends.
ESG, for example, is increasingly shaping the world economy and, in turn, capital markets. Exchanges, therefore, play a crucial role in promoting ESG disclosures, encouraging companies to adopt sustainable practices, and supporting the shift towards a green economy.
In Malaysia, the recently announced National Sustainability Reporting Framework (NSRF) establishes the baseline standards for sustainability, aligning with IFRS Sustainability Disclosure Standards. This framework paves a clear way forward for sustainability reporting by both publicly listed and unlisted companies.
The world is also witnessing the rapid adoption of digital technologies, including blockchain and artificial intelligence, which are fundamentally reshaping capital markets. This digital revolution brings immense opportunities, but also requires robust governance frameworks to ensure market stability and investor protection.
Of course, there are additional areas for exchanges to champion beyond those mentioned. However, as we look to the future of capital markets, it is crucial to strike a balance between governance and innovation. By maintaining this equilibrium, we can build trust and effectively navigate the risks associated with various disruptions.
It is crucial to encourage innovation, as it drives interest in the markets — including retail participation. At the end of 2022, retail participation made up only 25.7% of the value traded on Bursa Malaysia. Increasing retail investor involvement will make equities investment a more common source of wealth creation — which is in line with Ekonomi MADANI’s vision of levelling the playing field for all sectors. This, in turn, will also enhance market liquidity and dynamism, bringing renewed vigour and interest for all to benefit.
This three-day WFE event brings together brilliant minds and esteemed leaders from around the globe, all united by a passion to create successful capital markets.
The increasing interconnectedness of these markets presents both opportunities and risks. Cross-border trading, diverse regulatory regimes and market volatility influenced by the global environment require coordinated global responses. It is my personal hope that this event will help foster collaborations amongst world exchanges — to mitigate any global, systemic risks arising from increasing inter-connectedness, and to ensure funding is available for long-term sustainable development projects.
Next year, Malaysia will chair the Association of Southeast Asian Nations, or ASEAN, our vital regional community of nations. The year 2025 will be a momentous chapter for ASEAN, rich with significance and promise. We will mark the 10th anniversary of the ASEAN Community’s founding, a milestone in our collective journey.
And with it, we will embrace a new landmark – the ASEAN Community Vision 2045 – charting the course for our shared future for the next two decades.
Malaysia has chosen the theme “Inclusivity and Sustainability”. It reflects our aspiration for truly shared progress, ensuring that no one is left behind. At all times our actions and decisions will be guided by the principle of consensus.
I am pleased to learn that there will also be an MOU signed by ASEAN Exchanges at this WFE event, which is a testament to the spirit of regional partnership
Our aspirations for our 2025 chairmanship reflect our journey to achieve a truly shared progress, ensuring an inclusive and sustainable progress for as many as possible of our nearly 700 million people across ASEAN. That longstanding and perhaps seemingly intractable problematic issues are tackled and dealt with. That we open up new paths of peace, prosperity and opportunity so ASEAN’s remarkable growth to date deepens and widens. Thank you.