1. Economic Growth
2. Capital Market
3. Technology
4. Security
5. Politics and Development
Part A
A country’s economic growth is often regarded as the catalyst for stock market growth. Over the years, the stock market in Malaysia has developed into one of the fastest growing markets in the region (Ang 2009). The Malaysian economy ensures that the stock market is well structured as this will stimulate investment opportunities in the long run by recognizing and financing productive projects that leads to economic activity, allocation of capital proficiency and facilitation of exchange of goods and services (Mishkin 1998). In the Malaysian economy, stock markets play an important role by changing investments according to what is needed and it is the avenue where the public savings are generated to industries and business enterprises.
Part B
The capital market serves as an avenue for buyers and sellers to engage in the trade of financial securities, which consists of a primary and secondary market. A primary market allows investors to purchase financial products directly from an individual whereas the secondary market is a venue for business between investors.
For instance, the capital market laws were amended to encourage innovation and promote market efficiency. The amended law provides issuers with avenues to better optimize their capital structure and raise finance at competitive costs in meeting their business needs. Simultaneously, investors will benefit from broader choice of options to match their investment profiles and risk appetite. This new structure enhances consent efficiency without compromising investor protection because the new structure differentiates listed and unlisted capital market prod...
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Malaysia is known in leading the Islamic fund management companies and Islamic stock-broking companies that offer Islamic fund management and stock-broking services. The ICM in Malaysia is remarkable, two main reasons have been identified that support the emergence of this market are the 1997 Asian Financial Crisis, and the liquidity problem that arose because of the availability of surplus funds in the Islamic finance industry (IOSCO, 2004).
Besides that, the issuance of licenses to foreign Islamic financial instituitions promoted healthy competition and added to the dynamism of the Islamic financial industry. Malaysia’s ICM market grew deeper over the years as multinational corporations found Shariah-complaint products such as sukuk to be an attractive means of raising capital (Malaysia International Islamic Financial Centre 2014).
1. What is the difference between primary and secondary capital. How is relevant to this case?
Tutor-Marked Assignment (TMA) is requirement as part for the Master of Business Administration (MBA) Degree program at The Arab Open University(Oman Branch).
In turn everything in the present and the future is judged through the stocks as they hold a high importance in industrialized economies showing the healthiness of said countries economy. As investing discourages consumer spending over all decreases, it lead...
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
The Japanese Economy & nbsp;& nbsp;& nbsp;& nbsp;& nbsp; The prewar economy of Japan was a Socialist economy and the country was ruled by an emperor up to WW2 and after WW2 it started to lean towards a mixed market economy until what it is today, although its government is Socialist it is leaning towards a mixed market economy. & nbsp; The Japanese economy is a mixed economy that leans towards market, it is like this because almost all businesses are run by private corporations or people. and that is the market of the economy. And the reason that they are thriving and are so competitive is because of the trade tariffs and quotas that the government has in place. These regulations include heavy taxes on some products.
In 2003, Capital Market Authority (CMA) was established under the Capital Market Law (CML) to act as regulatory supervisor for the capital market. Capital Market Authority regulate and supervise different critical issues such as market conduct, merger and acquisitions, corporate governance, and issuance of financial tools such as mutual funds, IPOs and Sukuks “Islamic bonds”. Thus, the establishment of CMA defined a new stage of financial liberalization in the country. CMA established the legal and regulatory platform to open up the Saudi capital market, support the privatization effort and increase public participation in the market while promoting efficiency and transparency. Furthermore, in March 2007, Tadawul exchange was re-incorporated as joint stock Company with a capital of USD 320 million to increase autonomy for the exchange. After the formation of CMA, the Saudi capital market continuously evolving in term of breadth, depth and complexity. In March 2010, the number of listed companies increased to 139 from 76 back in 2001 as local companies started to look at capital markets to fund their future financing needs. Due to the increasing in investors participation, Tadawul’s total market capitalization at a compound annual growth rate “CAGR” of 34.8% to SAR 1.9 trillion which about USD 507 billion between 2003-2007. Due to the financial crisis in 2008-2009 the market capitalization for Tadawul declined to SAR 1.2 trillion, which about USD 320 billion. Between the years of 2003-2007, the stock market activity grew in a fast pace without interruption in term of value, volume, and market cap along with rising in the number of transactions. The total trading volume of shares on Tadawul Stock Exchange increased at a CAGR of 11.4% between 2003-2009. The
One of Malaysia’s more significant non-market environments that may have an impact on company’s performance is the country’s predominant religion of Muslim - 60% of the total population - followed by Buddhist (19.2%) .
Capital markets are markets "where people, companies, and governments with more funds than they need (because they save some of their income) transfer those funds to people, companies, or governments who have a shortage of funds (because they spend more than their income)" (Woepking, ¶3). The two major capital markets are stock and bond markets. Capital markets promote economic efficiency by moving funds from those who do not have an immediate need for it to those who do. Individuals or companies will put money at risk if the return on the intended investment is greater than the return of holding risk-free assets. An example of this would be those that invest in real estate or purchase stocks and bonds. Those that invest want the stock, bond, or real estate to grow in value or appreciate. An example of this concept would be if an individual or company invested an amount saved over the course of a year. While investing may be riskier, these individuals hope that the investment will yield a greater return than leaving the money in a savings account drawing nominal interest. In this example the companies that issue the stocks or bonds have spending needs that exceed their income so the company will finance their spending needs by issuing securities in the capital markets. This is a method of direct finance because the "companies borrowed directly by issuing securities to investors in the capital markets" (Woepking, ¶5).
Markets exist for the vast majority of goods and services. Markets can be defined broadly or narrowly. For example there are the consumer goods, capital goods, commodities, financial and labor markets. Each of these broad categories can be broken down into more specific markets. For example within the financial market there are markets for foreign exchange and for long term loans, within the corn modifies market there are the markets for corn and copper and within the consumer goods market there are the markets for clothes and cars. Prices usually play an important role in these markets.
Can anyone imagine what will happen to Malaysia after a few more decades? Debt crisis in Malaysia is getting more severe due to lack of management among individuals. Serious debt crisis might lead to bankruptcy to our country. Nation leaders should lead others away from debt. If this scenario continues, Malaysia might follow the footstep of Greece, Spain, Italy, and Portugal. Debt crisis can be avoided by providing trainings and courses to the employees, improve individual personal finance management and filtering candidates in hiring process.
The relationship and cooperation in handling the issue in Southern Thailand between Malaysia and Thailand government since a long time ago, has become disappointed, frustration and unsatisfied. This is might be best description that has been looked up since the working relations between past Thai governments and their Malaysian counterparts was comes to Southern Thailand (Thanet, 2013). For the Thailand government, cooperation with the Malaysian authorities is really needed while in dealing with the separatist insurgents that often to the slip across the porous border from Thailand. Meanwhile, for the Malaysian side, through the sharing of same ethnicity and Islamic religion in the Southern Thai Muslims, was means that their politicians ought to have a key role to play in understanding and resolving insurgency issues in Southern Thailand. Therefore, it might can be seem in logically think that, without the help by the Malaysian government, the issues that regards to Muslim separatist moments in the Deep South would be difficul...
As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.
For an organisation to rise fund, they usually tend to look at the stock market and capital market to do it so. This is two markets are usually seemed similar by the investors as they both contributes to the development of an economy. But there are significant difference between them. The capital market is a market that consist of stock market as well as the bond market. As a result, the capital market provides a long-standing finance using the debt capital and the equity capital. Capital markets divided into two sectors known as primary markets and secondary markets. The primary market is where securities are issued for the first time whereas the secondary market is where securities that have been already issued are traded among investors (Difference...
is regulated in the right manner will allow investors to be less skeptical and focus more on development
Next, Islamic banking also are misinterpret as not profitable as it forbidden riba’ in its practices. Also, we need to aware the customers that Islamic banking not just an alternative for finacial approach, but it also provides better value to the customers.