junior's toks

Fasten your seat belt.....

Malaysia on the verge of take-off
It has been an eventful week for the Malaysian capital market and banking industry with the Government announcing a slew of measures aimed at strengthening the economy and adding depth to the capital markets. The transformation of the financial landscape was signalled by Prime Minister Datuk Seri Abdullah Ahmad Badawi when he announced at the Invest Malaysia 2005 conference the names of the foreign brokers. The following day, Bank Negara also unveiled a series of measures designed to overhaul the exchange market.

I am pretty encouraged with the way PM and team shaping up our financial industry. Opening up the industry to big boys like JP Morgan etc will only make Malaysia's financial industry more competitive and more efficient.

Dun get me wrong, all these big boys CLSA, UBS, JP are all sharks. THEY ARE HERE TO MAKE MONEY.

Financial market is the backbone of a country's economy. At the end of the day, FINANCING is the key to BUSINESS development. When you add thousands of business together, you have the ECONOMY. (Tiu lor, I am not sure if my econ professor would vomit blood if I explain 'Economy' in that manner....). (Anyway, this is my blog, he would not read it...what the heck....)

A strong banking industry provide efficient financing to companies i.e. they do not 'chin chai' (simply) lend money to every tom dick and harry (like what we have in China). A strong capital market (equity side) allows hard working entrepreneur to share his risk with other retail investors (i.e. partial exit for businessman) and allow them to go IPO.

I like what I saw in the past few days. Those were decent, well thought decisions made by the Government.

Junior

posted by Junior @ 8:25 PM