Image credit: The Edge Market
KUALA LUMPUR: The Securities Commission Malaysia (SC) is engaging with the Finance Ministry (MoF) to conduct a review of SC's financial sustainability for a better revenue model, said its chairman Datuk Seri Dr Awang Adek Hussin.
He said the SC recorded a higher deficit last year compared to the previous year, and this situation cannot persist as it would affect its financial sustainability moving forward.
He pointed out that the operating environment has changed, and the regulator needs a better model to guarantee its financial sustainability in the future.
"This is our survival. If we continue for long, we cannot survive (with the current fee structure)," he said during a news conference on the SC Annual Report 2023 today (March 25).
According to the annual report released today, the SC recorded a deficit after tax of RM71.3 million last year, higher than a deficit of RM25.3 million in 2022.
Awang Adek said the last review was done 30 years ago.
"Investment banks pay RM2,000 (of fee) for a year. I think the background is that we wanted to develop the market back then, and we were not so concerned about charging fees.
"This is not something that we are overly worried, (but) we must recognise and do something about it," he said.
He noted that the engagement process is still in its early stages, but the government has been very receptive to the proposal.
"We must now consult with our stakeholders to ensure they can accept this amicably, as nobody wants to see the fees go up," he said.
Regarding the initial public offering (IPO), Awang Adek said SC targets 42 new listings this year compared to 32 IPOs last year.
Moving forward, he said the capital market is projected to remain positive, judging by its performance so far this year.
Source: https://www.nst.com.my/business/2024/03/1030240/chairman-sc-engages-mof-review-its-financial-sustainability