Kuala lumpur: Market regulators must possess integrity and adopt a facilitative approach to create value, expand capital markets, and tackle future challenges, emphasized Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi.

According to BERNAMA News Agency, Mohammad Faiz highlighted the importance of trust, stating that regulators must treat all parties fairly to maintain a fair and orderly market. He advocated for regulators to facilitate market development rather than hinder innovation with excessive conservatism.

‘Building trust requires strong institutional frameworks and processes,’ he noted, adding that SC, like other regional regulators, holds a dual mandate: to ensure a fair market and to develop capital markets. He illustrated this by mentioning the market’s growth from RM600 billion in the 1990s to RM4.1 trillion by the end of last year.

Mohammad Faiz acknowledged that not all initiatives over the past 30 years succeeded, with areas like digital assets and carbon credits still needing development. Nevertheless, he asserted that the SC’s market development mandate reflects its commitment to market growth.

He also addressed ongoing efforts to assess the current state of the capital market and its future trajectory. The SC is formulating plans to enhance market vibrancy, ensure product returns outpace inflation, and secure retirement funds.

Additionally, the SC is planning for medium-term challenges, such as transition and adaptation financing for climate change and fostering better relations with ASEAN neighbors post-Liberation day tariffs.

Mohammad Faiz remarked on the misconception that failures in companies are always due to blame, explaining that disruptions and poor decisions often lead to business failures. He illustrated this with the example of the Dow Jones Industrial index, where only five of the original 30 companies from the 1930s remain today.