|
In the late 1980s,
Bank Negara Malaysia was the Government agency responsible for the
regulation of corporate bond issuance. In March 1993, the Securities
Commission (SC) was established to act as the single regulatory body to
promote the development of the capital market, in particular to rationalise
securities market regulations.
Spurred by strong economic
growth, and supported by the efforts of regulators and market participants,
the corporate bond market has expanded considerably over the years. The
corporate bond market registered an average annual growth of 8% since 2000,
reaching the size of RM209.7 billion as at end-June 2006. Corporations have
turned their attention towards the bond market as a viable alternative to
bank borrowings and the equity market. Investors are also able to adjust
their risk-return profile through the trading of various securities
available in the market.
|
