In Malaysia, the Bank Negara Malaysia (BNM) is the statutory financial regulator. It is responsible for promoting financial stability and monetary policy in the country. It is also responsible for fostering a progressive, diversified, and sound financial sector. Through its regulatory activities, the BNM ensures the soundness of Malaysia’s financial system and helps ensure its long-term growth.
The BNM has several primary objectives, including prudent monetary policy, the development of a progressive financial sector, and management of public debt and international currency reserves. These objectives are achieved by regulating financial institutions, monitoring payment systems, and supervising the foreign exchange market. The BNM has a wide range of powers, and if the government decides to take action, the BNM is the ultimate arbiter of financial institution integrity.
In addition to the regulatory functions of financial institutions, the BNM also develops financial infrastructure. This includes promoting the creation of efficient payment systems and other necessary institutions. It also helps to foster the development of a balanced economy by promoting financial inclusion. For more information, visit the Malaysia Financial Services Authority website.
Malaysia has an active capital market. Regulatory bodies regulate trading in stocks, bonds, derivatives, and cryptocurrencies. The Securities Commission also regulates public-listed companies and encourages the growth of capital markets. Furthermore, it monitors companies to ensure compliance with securities laws. There are six licensed equity crowdfunding platforms in Malaysia.
The Malaysian financial regulator is looking at developing legislation on cryptocurrency exchanges and cryptocurrency fundraising. It has already published two consultation papers seeking feedback on ICOs and property crowdfunding. The public’s comments are due on March 29. If you have any concerns, contact the Malaysian Securities Commission. The regulator will respond to your concerns as soon as possible.
With the 12th Malaysia Plan in development, the government is working towards strengthening Malaysia’s economy and fostering a competitive digital banking landscape. It also intends to run a proof-of-concept project to evaluate the feasibility of a central bank digital currency. Moreover, it plans to develop an artificial intelligence park to attract foreign direct investments and promote the development of innovative technologies.
The Malaysian financial regulator regulates the financial activities of both residents and non-residents in Malaysia. It has strict laws on foreign exchange transactions, which prohibit certain types of transactions. Non-residents, however, can transfer earnings, returns, and divestment proceeds abroad. The Malaysian Securities Commission supervises securities enterprises, and the Money-Changing Act regulates money-changing businesses.
