Ringgit Bond Market

On 1 July 2000, the SC became the single regulator for the corporate bond market when it moved towards a full disclosure-based regulatory approach with the issuance of the Guidelines on the Offering of Private Debt Securities (PDS Guidelines). A series of other guidelines and regulations were concurrently issued to further streamline the issuance process for private debt securities.
 

Corporations may now undertake private debt securities issues without a prior assessment of the issues? merits by the SC, as long as the transparent requirements set out in the PDS Guidelines are complied with. Further, the SC is committed to an approval within 14 working days from the date of submission of declaration that the SC?s requirements under the PDS Guidelines have been complied with. The SC's commitment to strengthening and broadening the capital market is also manifested in the Malaysian Capital Market Masterplan (CMP). Launched in 2001, the CMP seeks to chart the future direction of the Malaysian capital market over the next 10 years. Seventeen of the 152 recommendations in the CMP relate to developmental initiatives for the bond market.

The right mix of strong cooperation between regulators, conducive market conditions and a growing awareness to disintermediate away from traditional bank loans to alternative forms of fund-raising are believed to be the key drivers to the meteoric growth seen in the ringgit bond market post-Asian financial crisis in 1997?1998. It is envisaged that the ringgit bond market will continue to be the preferred avenue for raising funds among corporate entities and will grow at an incremental rate.