KUALA LUMPUR, Feb 6 — Malaysia and Singapore have agreed to establish a market corridor to connect both countries, alongside a trading link between the respective stock exchanges to spur further mutual benefits and harness economic potential, Prime Minister Datuk Seri Najib Razak said.
This “Malaysia-Singapore Connect” will provide investors on both sides of the causeway with easier and seamless access to each other’s markets with a combined capitalisation of more than US$1.2 trillion and 1,600 public listed companies, he said in his keynote address at the World Capital Market Symposium 2018 here today.
The prime minister said the establishment of the market corridor followed discussions he had with his counterpart, Lee Hsien Loong.
He said Malaysia and Singapore agreed that both stock exchanges had reached a sufficient level of sophistication and degree of maturity for the establishment of the market corridor.
Following the decision, a regulatory arrangement will be worked on by the countries’ relevant authorities, to pave the way for the establishment of the trading link.
He said the initiative would indeed widen investment options for investors and contribute towards greater activity and vibrancy in both markets.
“Malaysia stands as a gateway to Asean and once the Regional Comprehensive Partnership is concluded, almost 50 per cent of the world’s population and over 30 per cent of global gross domestic product, will be covered.
“We are also due to sign the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the successor to the Trans-Pacific Partnership in March,” he added.
Najib said Malaysia’s reforms and economic management have been commended by numerous bodies such as the International Monetary Fund and Organisation for Economic Co-operation and Development.
“The World Bank says that we are expected to achieve high-income country status in the next few years and they state that, and I quote, ‘The Malaysian economy is progressing from a position of strength’,” he added.
Najib said the government was committed to ensuring that businesses and institutions not only deliver value for their stakeholders and the communities within which they operate, but also live up to the highest standards of governance, as befits Malaysia.
Themed, “Renaissance of Capitalism: Markets for Growth”, the Securities Commission is hosting the two-day Fifth World Capital Markets Symposium from today, to reassess the models and global relationships that have underpinned growth for most of the 20th century. — Bernama