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Invest Malaysia
Kuala Lumpur 2014
Mandarin Oriental
9 & 10 June2014
Datin Azalina Adham
Director Strategy & Transformation
Rosidah Baharom
Acting CFO UNLOCKING THE POTENTIAL
OF OUR MARKETPLACE
2
Sustainable Marketplace
Growth of Our Market Since 1997
Building Market Quality and Ensure
Sustainability
Resilient Securities Market
Derivatives Market Growing from
Strength to Strength
Islamic Market Continue to Grow
with Stricter Screening
Methodology
Offer Attractive Dividend Yields to
Shareholders
17,3
45
9,3
39
17,3
83
18,8
02
23,4
88
44,7
39
49,2
96
65,8
24
84,8
48
159,0
19
125,0
51
155,5
60
123,1
41
132,1
51
152,4
19 214,0
65
196,4
93
219,1
22
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
May 2
014
Open Interest (Derivatives)
3
376
375 5
53
444
465
482 640
722
695 849
1,1
06
664
999
1,2
75
1,2
85
1,4
66
1,7
02
1,7
07
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
YTD
May
2014
Market Capitalisation (RM bil) (Equity)
Growth of Our Market Since 1997
1,6
47
468 7
47
911
350
472 7
48
874
718 1
,019
2,1
79
1,1
81
1,1
29
1,4
54 1,6
99
1,5
73
1,9
15
2,1
17
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
YTD
May
2014
Average Daily Value (RM mil) (Equity)
3,8
05
4,6
73
3,4
46
2,9
54
3,3
86
5,1
92
8,1
31
10,6
17
9,9
58 1
6,9
15 2
5,0
11
24,8
78
24,7
49
24,8
18
34,4
74
39,3
85
43,4
90
47,1
69
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
YTD
May
2014
Average Daily Contracts (Derivatives)
4
Building Market Quality and Ensure Sustainability
4th among 148
countries for Strength
of Investor Protection
4th among 189
countries for Investor
Protection
Bursa Malaysia is
“Top 50 CG ranking of
mid/small caps in
Asia Pacific”
In CG best practice
4th among 11
countries in Asia CG
Watch market score
(2010: 6th)
13th for
Efficacy of Corporate
Boards
Malaysia
ranked by:
Malaysia ranked by:
Malaysia ranked by: Bursa Malaysia
ranked by:
Best Conduct of
AGM
Top 5
Overall CG
Award
Top 3
Corporate
Governance (CG)
Transparency
Award
Bursa Malaysia as recipient
of the awards from:
Malaysia
ranked by:
12th most
competitive country in
the world (2013:15th )
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013
Bursa Trade Value (USD bil)
5
Resilient Securities Market
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2009 2010 2011 2012 2013
Global Trade Value (USD tril)
12%
Over the last 5 years, the global trade value has gone up 12% while ours has grown by 84%.
84% 12%
19%
Source: World Federation of Exchanges
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2009 2010 2011 2012 2013
Bursa Derivatives Market Trade Volume (mil)
11%
6
Derivatives Growing from Strength to Strength
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2009 2010 2011 2012 2013
Global Derivatives Market Trade Volume (bil)
Over the last 5 years, the growth of our Derivatives Market has outpaced the global trade volume.
Last year global trade volume was up 2%; ours was up 11%.
75%
22%
Source: Futures Industry Association and Bursa Malaysia Berhad
2%
88% 88% 89% 88%
71%
% of Shari'ah Compliant Stocks
638
800 806
942 1,030
2009 2010 2011 2012 2013
Market Capitalisation and % of Shari’ah Compliant Stock
Market Cap of Shari'ah Compliant Stocks (RM bil)
7
Islamic Market Continue to Grow with Stricter
Screening Methodology
Market Capitalisation grew despite the reduction of number of Shari’ah compliant stocks due to the revised
Shari’ah Screening Methodology – a testament to investors’ confidence in our Shari’ah-compliant stocks.
8
Delivers
Dividend
Yield of
3.1%
Malaysia
(FBM KLCI)
Indonesia
(JCI)
Philippines
(PCOMP)
Singapore
(FSSTI)
Thailand
(SET)
Offer Attractive Dividend Yields to Shareholders
3.3
3.2
3.1
2.2
2.0
Source : Bloomberg
As at 30 May 2014
9
Integrated Exchange with Diverse
Asset Classes
Our Competitive Edge
Securities Market Overview
Derivatives Market Overview
Islamic Market Overview
STRENGTHENED MARKETPLACE
Diverse Marketplace
10
OTHERS ISLAMIC DERIVATIVES SECURITIES
11 Derivatives Products:
Commodity options
Commodity futures
Equity futures
Equity options
Financial futures
Islamic Offerings :
Sukuk
Shari’ah-compliant
equities
i-REITS
i-ETFs
Bursa Suq Al-Sila’
ETBS
TRADING CLEARING SETTLEMENT DEPOSITORY
Electronic trading platform
for bonds
Labuan International
Financial Exchange :
Non-ringgit securities
Bond /Sukuk Listing
LISTING
2 Markets @ 31 May 2014
Main Market : 797 cos
ACE Market : 108 cos
18 Sectors
Total Market Capitalisation:
RM1.7 trillion
Products :Shares, REITs,
Warrants, ETFs,
ETBS, CBBCs,
Loan stocks &
Bonds, Stapled
Securities
Integrated Exchange with Diverse Asset Classes
11
STRONGER
COLLABORATION
Resilience in
Securities Market
Niche in
Islamic Market
Growth in
Commodities &
Derivatives
Market
• Among The Highest
Dividend Yield In The
Region
• Home To Regional
Champions
• Diversified PLCs in Niche
sectors (oil and gas,
plantations, rubber glove)
• Top Sukuk Listing
Destination
• First Shari’ah Compliant
Commodities trading
platform
• 71% of stock listed are
shari’ah compliant
• Preferred Benchmark For
Pricing Of CPO Products
• Global Visibility Via
Globex
Our Competitive Edge
31.73
22.55
9.62
2012 2013 YTD May 2014
1,472
1,702
1,737
31 Dec 2012
31 Dec 2013
31 May 2014
12
Securities Market Overview Higher trading activities
Average Daily Value (OMT+DBT)
(RM mil)
Market Capitalisation (RM bil) Fund Raised from New Listings &
Secondary Market (RM bil)
1,666
2,137 2,237
2012 2013 YTD May 2014
28
30 31
Velocity (%) FBMKLCI
1,688.95
1,866.96 1,873.11
No. of New Listing
17 18
3
28%
16% -29%
13
Derivatives Market Overview FCPO contracts hit new high, ADC surpassed 50,000 contracts
Average Daily Contracts (’000)
Crude Palm
Oil Futures FBMKLCI
Futures Others
77%
22% 25%
Open Interest since Migration to Globex®
1/9/10
111,548
26/7/13
258,001
31/12/12
214,065
30/05/14
219,122
2012 2013 YTD May 2014
39.39
43.49
78% 77%
22% 25%
80%
19%
47.07
10% 1%
1%
1%
33.7
32.9
37.4
31 Dec 2012 31 Dec 2013 31 May 2014
2.30
3.88
5.00
2012 2013 YTD May 2014
14
Islamic Market Overview Continue to gain recognition as a market leader
% of Shari’ah Compliant Stocks No. of Trading Participants
Bursa Suq Al-Sila’ ADV
(RM bil) Market Capitalisation of Shari’ah
Compliant Stocks (RM bil)
No. of Sukuk
Value of Listed Sukuk (USD$ bil)
69% 942
1,029 1,051
31 Dec 2012 31 Dec 2013 31 May 2014
88 71 71
29%
19 20 21 69
78 83
-2%
15
Leading in ASEAN
Leveraging on ASEAN’s Growth
Transforming Malaysia
STRONGER
COLLABORATION
ASEAN’s Multinational Marketplace
16
Leading in ASEAN Outperformed peers in fund raised, index & market cap growth
7,047
6,043
4,843
2,771
2,164
Highest Fund Raised in ASEAN in 2013
10.5%
1.3%
0.0%
-1.0%
-6.7%
FBM KLCI
PCOMP Index
FSSTI JCI SET Index
FBM KLCI Outperformed ASEAN Peers in 2013
15%
2% 2%
1%
-2%
Strongest Market Capitalisation Growth in
2013
(USD mil)
Source: World Federation of Exchanges
(Bursa
Malaysia)
(The
Philippine
Stock
Exchange)
(Singapore
Exchange)
(Indonesia
Stock
Exchange)
(The Stock
Exchange
of
Thailand)
17
A Diverse Range of Malaysian Multinationals Are Tapping Into the
Growth of ASEAN and beyond.
Leveraging on ASEAN’s Growth Opportunities for ASEAN exposure in one marketplace
18
Government
Transformation
Plan
Competitiveness
Free Capital Mobility
& Improved Access to
Capital Market
New Economic Model & ETP
-high value & high income
- Increasing private sector role in driving business
Creating a conducive environment for
entrepreneurship
Focus on developing Human Capital & Innovation
4th for Investor Protection
(World Bank)
10th for Resilience in crisis
(Sevcorp Int’l Business Confidence
Survey)
21st amongst 134 countries for
Corporate Governance Framework
(World Economic Forum)
Access for Foreign Participation No restrictions on international
investments in Malaysia
Free to repatriate capital, profits and
income
Liberalised entry and ownership for
foreign players in the capital market
Foreign Listings
Transforming Malaysia Ranked top 10 on World Bank’s Ease of Doing Business Index
19
ROBUST GROWTH
Our Financial Performance
Financial Highlights
Stellar Financial Performance
Operating Revenue
Operating Expenses
Growing Dividends
20
Financial Highlights A good start to the year despite global challenges
Financial Items 1Q2014
1Q2014
vs.
1Q2013
1Q2014
vs.
4Q2013
Operating Revenue (RM million) 115.1 13% 11%
Operating Expenses (RM million) 60.2 10% 8%
PATAMI (RM million) 45.1 18% 33%
EPS (sen) 8.5 18% 33%
Cost to Income Ratio (%) 49 1 percentage
point
9 percentage
points
Annualised ROE (%) 23 5 percentage
points
6 percentage
points
302.5
297.8
331.3
381.5
388.5
439.8
184.2
181.9
196.6
212.0
209.2
229.4
2008 2009 2010 2011 2012 2013
104.4 98.6 111.9
143.1 150.6
173.1
Operating revenue (RM mil) Operating expenses (RM mil) PATAMI (RM mil)
Stellar Financial Performance Best financial performance in 6 years
21
2008 - 2010
PATAMI CAGR : 4%
2010 - 2013
PATAMI CAGR : 16%
101.7 101.7
114.3 114.3 114.7
116.4
114.9 114.9
115.1
13.8 - 1.3 0.5 1.7 0.4 - 2.0 0.3
1Q2013 1Q2014
(RM mil)
43.2
57.0
18.5
17.2 1.3
1.8
11.3
13.0 7.8
7.8
6.5
6.9
7.4
5.4
5.7
6.0
1Q2013 1Q2014 22
Total
RM115.1 mil
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
13%
Market Data
Membership Services & Connectivity
BSAS Trading Revenue
Total
RM101.7 mil
Operating Revenue Revenue bolstered by active trading in securities market
32%
7% 38% 7%
Growth contribution by revenue streams:
15% 7%
Other Operating Revenue*
28%
Note* - Other Operating Revenue mainly includes conference & expo income
50%
15% 2%
11%
7%
6% 5%
5%
1Q 2014
Operating Revenue Mix (%)
5.4 - 2.4 0.3 0.6 0.6 0.8
1Q2013 1Q2014
23
27.2
32.6
8.8
6.4 3.7
4.0 4.5
5.1 3.8
4.4 6.9
7.7
1Q2013 1Q2014
Total
RM54.9 mil
Total
RM60.2 mil
10%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses^
(RM mil)
16% 12% 27% 8%
20%
Operating Expenses Building talent and cost management
Movement of expenses:
54.9 60.2
12%
Note^ - Other Operating expenses includes building maintenance, administrative expenses and CDS expenses.
54%
11%
7%
8%
7%
13%
1Q 2014
Operating Expenses Mix
2.4% 2.6%
3.9% 4.3%
6.3%
8.8 9.5 13.0 13.5 16.0
16.0
9.0 10.5
13.0 13.5
20.0
2009 2010 2011 2012 2013
Payout
95%
24
Special Dividend (sen)
Interim Dividend (sen)
Final Dividend (sen)
* Excludes special dividends
Payout
94%
Payout
95%
Payout
98% *
Payout
93%
Growing Dividends Highest yield of 6.8%; total shareholders’ return 41% in 2013
0
1
2
3
4
5
6
7
8
Genti
ng B
erh
ad
Mala
yan B
ankin
g B
hd
Petr
onas
Chem
icals
Gro
up
Bri
tish
Am
eri
can T
obacco
Maxis
Bhd
Dig
i.Com
Bhd
Tele
kom
Mala
ysi
a B
hd
UM
W H
old
ing B
hd
Sim
e D
arb
y
Feld
a G
lobal Ventu
res
Axia
ta G
roup B
hd
IOI Corp
Bhd
Hong L
eong B
ank
CIM
B
AM
MB H
old
ings
Bhd
RH
B C
apit
al
Public B
ank
PPB G
roup
Hong L
eong F
inancia
l …
Genti
ng M
ala
ysi
a B
hd
Petr
onas
Dagangan
Petr
onas
Gas
Bhd
Ast
ro
Tenaga N
asi
onal
Bhd
Kuala
Lum
pur
Kepong
YTL C
orp
Bhd
YTL P
ow
er
MIS
C
BU
RSA M
ALAYSIA
Dividend Yield – Bursa vs. FBMKLCI Constituents
@ 30 May 2014
6.8
Source: Bloomberg
25
Focus Area
Achievements in 1Q2014
Going Forward – Key Deliveries
Expanding Capital Market
STRONGER
COLLABORATION
Our Strategy and Focus Area
26
LEVERAGE ON
ASEAN
GROWTH
LEVERAGE ON
DOMESTIC
LIQUIDITY
IMPROVING
MICROSTRUCTURE
Focus 1: Value Extraction Focus 2: Build for the Future
REVIEW
MACRO-
STRUCTURE
REVIEW
MARKET
FRAMEWORK
DEVELOP REGIONAL
PRESENCE &
NEW BUSINESS
Focus Area To establish strong regional presence
27
Achievements in 1H2014
SECURITIES MARKET
• Listing of new ETF MyETF
MSCI Malaysia
Islamic Dividend
• Increase of available
stocks for Securities
Borrowing and Lending from
171 to 218 • E-initiative to grow retail
participation – with
DERIVATIVES MARKET
• Introduced new
Participantship
Structure for Trading
Participants and
Associate Participants to drive the recruitment of
new intermediaries and to
expand the distribution
channel
• Introduced Derivatives
Refined Bleached and
Deodorised (RBD)
Palm Olein Futures
Contract
ISLAMIC MARKET
• Signed MoU with the
Saudi Stock
Exchange (Tadawul) to formalise a collaboration
to develop cross border
activities between both
exchanges in capital market
development
28
Going Forward – Key Deliveries
Enhance Retail
Business
Creating a distinct and
trustworthy
marketplace – the first
in the region ESG
Index
New Derivatives
Products
ASEAN Post
Trade to provide
streamlined and cost-
effective post-trade
procedures for cross-
border transactions
conducted via the
ASEAN Trading Link
Continue to
strengthen
Bursa Malaysia as
ASEAN MULTINATIONAL
MARKETPLACE –
ASEAN
Business
Create a More
Facilitative
TRADING
ENVIRONMENT
Facilitate More
TRADABLE
ALTERNATIVES
Reshape
MARKET
STRUCTURE &
FRAMEWORK
REGIONAL
MARKETPLACE
with Global Access
(Centre of ASEAN)
SI 1 SI 2 SI 3 SI 4
29
Holds 25% of equity stake in Bursa Derivatives
Migration of Malaysian derivatives products to CME Globex®
FTSE
Upgrade
CFTC
Approval
U.S. SEC
Approval
“Designated Offshore Securities
Market” recognition to ease trading
in Malaysian listed securities & shelf
listed bonds by U.S. investors
CME
Partnership
Approval from US Commodity
Futures Trading Commission (CFTC)
to enable Malaysian Futures brokers
to deal with US customers
ASEAN Trading Link
connecting Bursa Malaysia,
Singapore Exchange and
Thailand
CBRC
Recognition
ASEAN Link
Malaysia promoted to Advanced
Emerging Market status in FTSE
Global Equity Index Series
QDII – Malaysia Investment destination for China investors
Expanding Capital Market Global partnerships & recognition
30
Appendices
31
17% 29% 31%
43% 44% 46% 47% 52% 52%
84%
111% 115%
137%
243%
Bursa’s Potential To Grow Its Velocity YTD April 2014
Source: Bursa Malaysia Bhd and World Federation Exchanges (WFE)
(%)
350 472 748 874
718 1,019
2,179
1,181 1,129 1,454
1,699 1,573 1,915
2,117
-
400
800
1,200
1,600
2,000
2,400
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD May 2014
RM mil
615
1,490 1,266
1,099 1,435
1,209 1,387
1,793 2,161
1,579 1,732
1,341 1,841 1,439
1,595 1,793
1,643
2,308 2,002
1,686
2,068
-
400
800
1,200
1,600
2,000
2,400
2,800
1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14
RM mil
20 23
34 32 25
32
53
34 34 33 33 28 30 31
23
48
36
28 35
28 31
37 42
30 34
27 34
27 28 25
28
37 32
25 30
Turnover Velocity (%)
32
Quarterly ADV Traded & Velocity
Average Daily Value Traded (OMT, RM mil)
Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)
Annual ADV Traded & Velocity
Securities Market Trading Activity
66 63
76 67
73 74 77 78 75
34 37 24 33 27 26 23 22 25
2006 2007 2008 2009 2010 2011 2012 2013 YTD May 2014
33
65 63 58
73 73 74 74 74 75
35 37 42 27 27 26 26 26 25
2006 2007 2008 2009 2010 2011 2012 2013 YTD May 2014
From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal
system.
Retail
(%)
Institutions
(%) Local
(%)
Foreign (%) Retail ADV Traded
(RM mil)
Foreign ADV
Traded (RM mil)
Retail vs Institutions Foreign vs Local
Securities Market Trading Participation
357
806
496
323 392 437 404
507 530
346
806
283 369 392 442
354 424
530
26.2
21.3
20.4
21.9
22.7
23.9
23.5
23.2
23.1
23.0
23.1
2007 2008 2009 2010 2011 2012 2013 Jan-14 Feb-14 Mar-14 Apr-14
23.2 76.8
34
Foreign Ownership by Nationality (%) Based on Market Capitalisation
(as at month end)
(%)
Singapore
Hong Kong
UK
Foreign Nominees
China
Taiwan
USA
Mid-East
5.6
1.6
2.0
0.4
0.8
0.1
0.1
Others 12.6
Securities Market Foreign Ownership
50
35
117
142
123
129
115 114
132 136
162
171
152
174
146
172
214
196
213 204
196
218
66
85
159
125
156
123 132
152
214
196
224
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
Total Annual Contract (Mil) Quarterly (Average Daily Contracts ’000)
Crude Palm Oil Futures Others Open Interest (’000)
19%
80%
2.6 2.5
4.2
6.2 6.1 6.1 6.2
8.4
FMBKLCI Futures
20%
29
`
`
79%
24 22
24 23 25
28
37
32 34 35
31
40 42 44
9.6
45
10.7
42
46
Derivatives Market Activity
42
1%
4.8
1%
YTD
May
2014
36
31 19 14 16 16 13 15 15 20 21 19 17 18 19
45
48
45 43 40 40 41 46
52 44 42 25 28 23
3
6
5 3
3 2
2 2
3
2 2
2 1
2
14 23
31 37 40
45 42 37
26 33 37
56 53 56
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
(%) FKLI
40 38 35 33 35 31 25 27 36 34 34 36 33 35
15 21 26 24 23
27
34 38
27 26 24 19 17 17
4
6 4
3 2 1 1 1
1 1
1 1
27
21 18 20 22 25 22
15 17 15
13 12 10 11
14 14 17 20 18 16 18 20 19 25 28 32
39 36
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
(%) FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic Retail Domestic Institutions
Foreign Institutions Foreign Retail
June –
Dec
2012
June -
Dec
2012
Derivatives Market Demography
YTD
May
2014
YTD
May
2014
37
Islamic Market Trading Activity
RM bil
0.01 0.10 0.18 0.27 0.35
0.64
1.05 1.11 1.29
1.41 1.55
2.17
2.46
2.99
3.65
3.40
3.79
4.67
5.10
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14
BSAS Average Daily Value
38
GDP Growth Projected 4.5 – 5.5% for 2014
Healthy International Reserves
Strong Banking Sector & Ample
Liquidity
> 90% of assets are RM denominated
Net Impaired Loans ratio : 1.3% @ March 2014
Conducive Domestic Interest
Rates Overnight policy rate: 3.0%
Manageable Inflation Average 3.00 – 4.00% for 2014
Source: BNM
USD131 billion @ 15th April 2014
Sound Macro Environment We are fundamentally strong
www.bursamalaysia.com
KOAY LEAN LEE
603-2034 7306
Disclaimer :
Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this Presentation.
Whilst the Company endeavours to ensure that the contents in the presentation booklet are accurate, complete or have been obtained from sources
believed by the Company to be accurate and reliable, neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal
liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation.
In no event shall the Company be liable for any claim, howsoever arising, out of or in relation to this presentation booklet to the recipient of this
presentation booklet and/or to any other third party.
© Bursa Malaysia 2013
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MUHAMMAD ALI
603-2034 7673
LIM SIEW CHING
603-2034 7277
NURHAFIZAWATI HANAFFI
603-2034 7484
INVESTOR RELATIONS CONTACT INFORMATION
