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Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina Adham Director of Strategy & Transformation Puan Nadzirah Abdul Rashid Director of Corporate Services

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Page 1: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Invest Malaysia, Kuala Lumpur

13- 14 June 2013

Datin Azalina Adham Director of Strategy & Transformation Puan Nadzirah Abdul Rashid Director of Corporate Services

Page 2: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

SUSTAINABLE MARKETPLACE

EXPANDING INFLUENCE

Page 3: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Sustainable Marketplace Malaysia’s Growth Opportunities

Market Cap Growth from 2009 - 2012

ETP Projects up to 2020

Amount of Untapped Liquidity

2012 World Competitiveness

130%

Investor Protection

2013 Projected GDP Growth

5%

Source: Asia Corporate Governance Association

Source: World Bank

4th in terms of Strength for Investor Protection out of 183 Nations

Source: World Economic Forum

21st Most Competitive Nation out of 142 Nations

Source: Various research reports

Domestic unutilised deposit of circa RM290 bil

RM203 bil to boost economic growth

Source: WFE

3

Page 4: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

0

1

2

3

4

5

6

-2%

0%

2%

4%

6%

8%

10%

February-13 March-13 April-13 May-13

Valu

e Tr

aded

(RM

Bil)

FBM

KLCI

Per

form

ance

(%

)

Value Traded (RM Bil) FBMKLCI Performance (%)

Sustainable Marketplace Market has jumped post GE13

Both FBMKLCI and the value of shares traded on the exchange has picked up post GE13. ADV for the month of May reached RM2.9 bil.

March -13 April -13 May -13 June -13

5th May – GE 13 held

FBMKLCI 1st March – 1,637.44

FBMKLCI 3rd June – 1,766.33

4

Page 5: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2008 2009 2010 2011 2012

Global Trade Value (USD Trillion)

22%

Sustainable Marketplace Trade Value Held Steadily Amidst Global Uncertainties

Over last 5 years, the global trade value has gone down 46% while ours has grown by 42%.

During a year when exchanges are facing global financial turbulence, global trade value was down 22%; ours was down by only 7%.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2008 2009 2010 2011 2012

Bursa Trade Value (USD billion)

42%

46% 7%

Source: World Federation of Exchanges

5

Page 6: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

1.17%

1.92%

2.18%

2.51%

2.76%

3.00%

3.23%

3.23%

3.45%

4.45%

Sustainable Marketplace Offers Attractive Dividend Yields to Shareholders

Selected Regional Markets – Dividend Yield

Australia (AS30)

Bursa (FBM KLCI)

China (SHASHR)

Hong Kong (HSI)

Indonesia (JCI)

Philippines (PCOMP)

Singapore (FSSTI)

South Korea (KOSPI)

Taiwan (TWSE)

Thailand (SET)

Source: Bloomberg – Dividend yield for main regional indices as at 31 May 2013

6

Page 7: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

(RM bil)

(2.00)

(1.00)

-

1.00

2.00

3.00

4.00

5.00

6.00

Jan-

12

Feb-

12

Mar

-12

Apr-

12

May

-12

Jun-

12

Jul-

12

Aug-

12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr-

13

May

-13

Foreign Net Purchases/Sales

Sustainable Marketplace Foreign Investors Were Net Buyers For Most Months

Net Purchases Net Sales

7

Page 8: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2008 2009 2010 2011 2012

Bursa Trade Contract (million)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2008 2009 2010 2011 2012

Global Trade Contract (billion)

16%

Sustainable Marketplace Increase in Derivatives Contracts While Global Contracts Down by 16%

Over last 5 years, the global trade value has gone up 24% while ours has grown by 57%.

During a year when the global contracts traded was down by 6%, ours was up by 14%.

57%

24%

Source: World Federation of Exchanges

14%

8

Page 9: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Sustainable Marketplace Our FCPO is Global Benchmark

3.00 4.01 4.06

5.87

7.46

0

1

2

3

4

5

6

7

8

2008 2009 2010 2011 2012

Total Contract Traded on FCPO (Million)

Our FCPO is the world’s most successful CPO futures contract and it continues to be the global benchmark as evidenced by the growth in total contract traded.

148%

9

Page 10: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Sustainable Marketplace We are Forerunner in Islamic Capital Market

Our one of a kind Bursa Suq Al-Sila’ ADV commodity traded is gaining traction by growing rapidly over the years.

Note* - Bursa Suq Al-Sila’ was launched in August 2009. Therefore, there is no statistic for 2008. Note^ - Sukuk Listing was introduced in December 2008.

17.6

27.7 28.5

33.7

0

5

10

15

20

25

30

35

40

2008^ 2009 2010 2011 2012

Value of Sukuk Listings (USD)

91%

70

364

1,219

2,299

0

500

1000

1500

2000

2500

2008* 2009 2010 2011 2012

BSAS Average Daily Value Commodity Traded (RM million)

3,204%

10

Page 11: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

DIVERSE MARKETPLACE

FUELLING GROWTH

Page 12: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

10 Derivatives Products:

Commodity options

Commodity futures

Equity futures

Equity options

Financial futures

Islamic Offerings :

Sukuk

Shari’ah-compliant

equities

i-REITS

i-ETFs

Bursa Suq Al-Sila’

ETBS

TRADING CLEARING SETTLEMENT DEPOSITORY

SECURITIES DERIVATIVES ISLAMIC OTHERS

Electronic trading platform for bonds

Labuan International Financial Exchange :

Non-ringgit securities

Bond /Sukuk Listing

LISTING

Diverse Marketplace Integrated Exchange With Diverse Asset Classes

2 Markets:

Main Market : 800 cos ACE Market : 110 cos

Products :Shares, REITs, Warrants, ETFs, ETBS, CBBCs, Loan stocks & Bonds

12

Page 13: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Diverse Marketplace Market Breadth & Depth

16%

84%

Market Capitalisation by Sectors

Market Highlights (as at 31 May 2013)

Diversity : • 18 sectors • 50 economic activities

Other highlights :

910 listed companies RM1,612 billion USD521 billion market

capitalisation

Gives excellent market coverage, peer comparisons, sector premiums & global sector play

37%

22%

11%

8% 8% 5% 3%

3% 2% 1%

Trading/Services

Finance

Industrial Products

Consumer Products

Plantation

Property

Infrastructure

Others

Construction

Technology

13

Page 14: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Resilience in Equity Market

Niche in Islamic Market

Growth in Commodities & Derivatives Market

• Among The Highest Dividend Yield In The Region

• Home To Regional Champions

• Diversified PLCs in Niche sectors (oil and gas, plantations, rubber glove)

• Top Sukuk Listing Destination

• First Shari’ah Compliant Commodities trading platform

• 88% of stock listed are shari’ah compliant

• Preferred Benchmark For Pricing Of CPO Products

• Global Visibility Via Globex

Diverse Marketplace Our Competitive Edge

14

Page 15: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

33

28

32

1,285

1,466

1,612

2011 2012 31 May 2013

1,788

1,573

1,920

2011 2012 YTD 31 May 2013

14.95

31.73

9.50

2011 2012 YTD 5 June 2013

Average Daily Value (RM mil)

Velocity (%) FBMKLCI No. of New Listing

Market Capitalisation (RM bil) Fund Raised from New Listings & Secondary Market (RM bil)

1,530.73 1,688.95

1,769.22

Securities Market Overview Average Daily Value Lifted After GE

28

17

5

22% 10%

15

Page 16: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Crude Palm Oil Futures FMBKLCI Futures

Derivatives Market Overview Strong Growth in Trade Volume and Open Interest

Quarterly Average Daily Contracts (000’)

Others

2011 2012 YTD 31 May 2013

34.47

39.39 14%

77% 68%

31% 22%

74%

25%

43.86 11%

Open Interest since Migration to Globex®

1/9/10 96,678

28/2/12 199,215

31/12/12 214,065

31/5/13 214,426

16

Page 17: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

2011 2012 YTD 31 May 2013

89 88 88

200 813

802

2011 2012 YTD 31 May 2013

18%

2011 2012 YTD 31 May 2013

55 69 71 19

20 19

Sukuk Listing (USD$ bil)

No. of Sukuk

Bursa Suq Al-Sila’ ADV Commodity Traded

(RM bil)

1.2

No. of Trading Participants

2.3

92%

28.5

33.7

3.5

33.5

Shari’ah Indices Performance

52%

Islamic Market Overview BSAS ADV Trending Up and Continue To Grow

-0.6% -2.52%

-1.35%

% of Shari’ah Compliant Stocks

17

Page 18: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

ASEAN’S MULTINATIONAL MARKETPLACE

Page 19: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

ASEAN Exchanges ASEAN’s Multinational Marketplace

Strategically located in the centre of ASEAN (Average GDP of 5.4%), Malaysia’s capital market should benefit from the AEC Blueprint and ASEAN Exchanges collaboration.

ASEAN Link has gone live, connecting Bursa Malaysia to SGX and SET on 18 September 2012 and 15 October 2012 respectively. Bursa is well positioned to capitalise on the total daily trade of approximately USD3 billion (ASEAN ex-Vietnam).

FY2009 FY2010 FY2011 FY2012

28%

(FBM KLCI PLCs %)

38% 33%

% Overseas Revenue

6 countries

7 exchanges

529 million people

3,600 companies

USD2.0 trillion market capitalisation

45%

ASEAN’s Multinational Marketplace Capitalise on ASEAN’s Marketplace

19

Page 20: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Finance

Oil & Gas

Telcos

ASEAN’s Multinational Marketplace Regional Champions and Ambassadors of Malaysia’s story

Some of our companies are global leaders in their respective fields and others are making mark around the region. They grow by leveraging on the country’s assets and pro-business policies. These

companies now spearhead Malaysia’s emergence as a dynamic advancing economy.

Others

Plantations

20

Page 21: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

21

Government Transformation

Plan

Recognition & Competitiveness

Free Capital Mobility & Improved Access to

Capital Market

New Economic Model & ETP - high value & high income Increasing private sector role in driving business Creating a conducive environment for entrepreneurship Focus on developing Human Capital & Innovation

4th for Investor Protection (World Bank)

10th for Resilience in crisis (Sevcorp Int’l Business Confidence Survey)

21st amongst 134 countries for Corporate Governance Framework (World Economic Forum)

Access for Foreign Participation No restrictions on international

investments in Malaysia

Free to repatriate capital, profits and income

Liberalised entry and ownership for foreign players in the capital market

Foreign Listings

Transforming Malaysia Conducive Investment Environment

21

Page 22: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

OUR FINANCIAL PERFORMANCE

BUILDING CAPITAL

Page 23: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Our Financial Performance Revenue Growing at Faster Rate than Expenses

Operating revenue has gone up by 28% over the last 5 years compared to increase in expenses of only 13%. The jump in Operating Revenue was significant in the last 2 years.

Currently, we have achieved cost optimisation. However, we foresee an increase in operating cost in the future due to our investment in human capital to build talents. This is to achieve our goal as a high performance organisation.

Operating Expenses

Operating Revenue

186.0 183.2 197.3 214.0 211.1

302.5 297.8 331.3 381.5 388.5

2008 2009 2010 2011 2012

(RM million)

Operating Expenses 13% Operating Revenue 28%

23

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104.4 101.6

113.0

146.0 151.5

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2008 2009* 2010 2011 2012

PATAMI (RM million)

Our Financial Performance Recorded Strong Performance Especially in the Recent 2 Years

Note* - The results and ratio for 2009 exclude the extraordinary gain on disposal of a subsidiary.

13.8 13.6 13.4

17.1 17.4

0

2

4

6

8

10

12

14

16

18

20

2008 2009* 2010 2011 2012

ROE (%)

26% 45%

24

Page 25: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

12.2 8.8 9.5

13.0 13.5

5.9 9.0

10.5

13.0 13.5

2008 2009 2010 2011 2012

Payout 95%

Our Financial Performance Growing Dividends and Consistent Payout of > 90%

Payout 93%

Payout 94%

Final Dividend (sen)

Interim Dividend (sen)

Payout 95%

Payout 91%

25

Page 26: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

3.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Dividend yield - Bursa vs. FBMKLCI Constituents @ 31 May 2013

Our Financial Performance One of the Highest Dividend Yield PLCs among FBM KLCI Constituents

Source: Bloomberg 26

Page 27: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

42

19

11

8

6 7

7

1Q 2013

Operating Revenue Mix (%)

50.5 43.2

12.9 18.5

12.3 11.3

7.5 7.8

5.0 6.5 6.1 7.4 6.2 7.0

1Q 2012 1Q 2013

Operating Revenue Sustained Despite Lower Activity On Securities Market

Total RM100.5 mil

Total RM101.7 mil

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

1%

Market Data

Membership Services & Connectivity

Other Operating Revenue

Note : Please refer to the appendix for further details of the reclassification of revenue

100.5

93.2 93.2

97.8 97.8 98.2 99.6 100.9 101.7

-7.3 +5.6 -1.0

+0.3 +1.5

+1.3 +0.8

1Q 2012 1Q 2013

Growth contribution by revenue streams:

(RM mil)

14%

13%

29% 21%

4%

43%

8%

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Other Operating Revenue

Membership Services & Connectivity

27

Page 28: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

(%)

50

16

7

8

6

13

1Q 2013

Operating Expenses Mix

Staff costs

IT maintenance

Service fees

Other operating expenses

Depreciation & amortisation

Marketing and development

Operating Expenses Higher Staff Development Cost To Attract And Retain Talent

24.2 27.2

8.0 8.8

4.2 3.7 4.0 4.5 2.5

3.8 9.3

6.9

1Q 2012 1Q 2013

Total RM52.2 mil

Total RM54.9 mil

5%

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses

52.2

54.9

+3.0 +0.8 - 0.5 +0.5

+1.3 -2.4

1Q 2012 1Q 2013

Movement of expenses:

12%

12%

9% 14% 52%

25%

(RM mil)

28

Page 29: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

SEEDING IDEAS

OUR STRATEGY & FOCUS AREAS

Page 30: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Focus Area in 2013 and Beyond To Establish Strong Regional Presence

LEVERAGE ON ASEAN

GROWTH

LEVERAGE ON DOMESTIC LIQUIDITY

IMPROVING MICROSTRUCTURE

Focus 1: Value Extraction Focus 2: Build for the Future

REVIEW MACRO-

STRUCTURE

REVIEW MARKET

FRAMEWORK

DEVELOP REGIONAL PRESENCE &

NEW BUSINESS

30

Page 31: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Create a More Facilitative TRADING ENVIRONMENT

Facilitate More TRADABLE ALTERNATIVES

Reshape MARKET STRUCTURE & FRAMEWORK

REGIONAL MARKETPLACE with Global Access (Centre of ASEAN)

2013 Business Plans Major Initiatives to Build a Competitive Marketplace

E-Rights Retail Strategy BTS Replacement

ETBS ETFs and Business

Trusts New Derivatives

Products

Revamped of Business Rules for Securities Brokers Liberalisation of

Derivatives market membership structure CMTF

ASEAN Link ASEAN Exchanges

SI 1 SI 2 SI 3 SI 4

Projects implemented in 2013

31

Page 32: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Expanding Capital Market Global Partnerships & Recognition

Migration of Malaysian derivatives products to CME Globex®

QDII – Malaysia Investment destination for China investors

FTSE Upgrade

CFTC Approval

U.S. SEC Approval

“Designated Offshore Securities Market” recognition to ease trading in Malaysian listed securities & shelf listed bonds by U.S. investors

CME Partnership

Malaysia promoted to Advanced Emerging Market status in FTSE Global Equity Index Series

We have built successful global partnerships and will continue our efforts for more business collaborations.

Approval from US Commodity Futures Trading Commission (CFTC) to enable Malaysian Futures brokers to deal with US customers

ASEAN Trading Link connecting Bursa Malaysia, Singapore Exchange and Thailand

CBRC Recognition

ASEAN Link

32

Page 33: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Internationally Benchmarked Building Market Quality and Ensure Sustainability

• 4th among 11 countries in Asia (6th in 2010)

• Bursa Malaysia as a listed company is included in the “Top 50 Corporate Governance ranking of mid/small caps in Asia Pacific”

• 4th among 142 countries for Strength of Investor Protection and 9th for Efficacy of Corporate Boards

• 4th among 183 countries for Investor Protection

ASIA CORPORATE

GOVERNANCE ASSOCIATION

WORLD BANK

WORLD ECONOMIC

FORUM

FUTURES & OPTIONS WORLD AWARD

• Winner of Best Technology Innovation by an Asian Exchange Award and Runner-up for the Asian Derivatives Exchange of the Year Award

33

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www.bursamalaysia.com

APPENDICES : Reclassification Of Quarterly Operating Revenue – 1Q12 to 1Q13 35

Our Strategic Intents 36 – 37

Bursa’s Potential To Grow Its Velocity 38

Securities Market 39 – 41

Derivatives Market 42 – 43

Sound Macro Environment 44

Page 35: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

Reclassification Of Quarterly Operating Revenue – 1Q12 to 1Q13

(RM'000) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Securities clearing fees 41,549 34,408 35,893 32,788 34,340 Securities trade fees 5,431 4,534 4,866 4,434 4,760

Institutional Settlement Service (ISS) fees 3,428 3,270 3,371 3,624 3,986

Other securities revenue 108 250 315 228 144 Securities trading revenue 50,516 42,462 44,445 41,074 43,230

Derivatives clearing fees 2,490 3,299 3,333 3,478 3,516 Derivatives trade fees 7,472 9,855 9,461 9,950 9,927 Collateral management services 1,598 1,781 1,755 2,093 2,692 Other derivatives revenue 1,318 1,808 1,645 1,995 2,314 Derivatives trading revenue 12,878 16,743 16,194 17,516 18,449

Listing and issuer services * 12,307 14,120 12,595 12,411 11,348 Depository services 7,476 9,858 9,584 9,498 7,812 Market data 5,028 6,262 6,620 6,212 6,471 Member services and connectivity 6,145 6,477 6,323 6,711 7,440 Other operating revenue ** 6,152 819 909 1,125 6,948

Total operating revenue 100,502 96,741 96,670 94,547 101,698

* Listing & issuer services revenue consists of listing fees and perusal & processing fees

** Other operating revenue consists of BSAS trade fees and conference income

35

Page 36: Invest Malaysia, Kuala Lumpur - Bursa Malaysia Berhadbursa.listedcompany.com/misc/Presentation_Slide_13-14June2013.pdf · Invest Malaysia, Kuala Lumpur 13- 14 June 2013 Datin Azalina

B U I L D I N G A C O M P E T I T I V E M A R K E T P L A C E

F O U R S T R AT E G I C I N T E N T S

SI 1

SI 2

New Derivatives Clearing System

New Bursa Malaysia Website

Central Matching System Enhancement for Straight Through Processing

BTS New Trading Features

eCash payment framework

FTSE and Bursa Malaysia introduce Shari’ah Compliant Small Cap Index Implementation of CDS Straight Through Processing

Bursa Suq Al-Sila’ expanded Commodity Offering with RBD Palm Olein

Revamped Options on Index Futures (OKLI)

Options on CPO Futures (OCPO)

Create a More Facilitative TRADING ENVIRONMENT

Facilitate More TRADABLE ALTERNATIVES

Our Strategic Intents We made progress and we delivered in 2012(i)

36

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B U I L D I N G A C O M P E T I T I V E M A R K E T P L A C E

F O U R S T R AT E G I C I N T E N T S

SI 3

SI 4

ASEAN Exchanges

ASEAN Trading Link connecting Bursa Malaysia, Singapore Exchange and Thailand

Introduce Referral Agent Activities

Ease of Local Participants entry requirements for Derivatives trading

Ease restrictions for establishment branches/kiosks for Futures Brokers

Dual Licensing Fast Track Programme - Eligibility requirement further ease with minimum years experience

reduced from 10 to 5 years Establishment of new Shari’ah Committee - To enhance and strengthen business governance for Islamic Offerings Amendment of listing requirements* - To strengthen board quality and enhance transparency of listed

issuers’ corporate governance practices New Surveillance System

Reshape MARKET STRUCTURE & FRAMEWORK

REGIONAL MARKETPLACE with Global Access (Centre of ASEAN)

Note* - in line with the recommendations made under the Corporate Governance Blueprint 2011 (CG Blueprint), as well as the Malaysian Code on Corporate Governance 2012 (MCCG 2012) issued by the Securities Commission (SC).

Our Strategic Intents We made progress and we delivered in 2012 (ii)

37

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20 29 32 38 39

50 52 60 60

71 84

101

141

197 204

Bursa’s Potential To Grow Its Velocity YTD April 2013

Source: World Federation Exchanges (WFE)

(%)

38

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57

31

40 39

20 23

34 32 25

32

53

34 34 33 33 28 29

1,924

497 805 911

350 472 748

874 718

1,019

2,179

1,181 1,129

1,454

1,699 1,573 1,920

-

400

800

1,200

1,600

2,000

2,400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD May 2013

RM mil

2,610 2,303

2,069 1,751 1,907

1,187 823 854

615

1,490 1,266

1,099 1,435 1,209

1,387

1,793 2,161

1,579 1,732 1,341

1,841

1,439 1,595 1,430

1,643

-

400

800

1,200

1,600

2,000

2,400

2,800

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13

RM mil

68

54 50 41 46

31 25

32 23

48 36

28 35

28 31 37 42

30 34 27

34 27 28 25 28

Securities Market Trading Activity

Quarterly ADV Traded & Velocity

Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)

Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)

Annual ADV Traded & Velocity

39

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65 63 58

73 73 74 74 71

35 37 42 27 27 26 26 29

2006 2007 2008 2009 2010 2011 2012 YTD May 2013

66 63 76

67 73 74 77 82

34 37 24 33 27 26 23 18

2006 2007 2008 2009 2010 2011 2012 YTD May 2013

357

806

496 323

392 437 404 556

346

806

283 369 392 442 354 345

From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal system.

Retail (%)

Institutions (%)

Local (%)

Foreign (%) Retail ADV Traded (RM mil)

Foreign ADV Traded (RM mil)

Retail vs Institutions Foreign vs Local

Securities Market Trading Participation

40

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Securities Market Foreign Ownership

Singapore

Hong Kong

UK

Foreign Ownership by Nationality (%)

Foreign Nominees

Based on Market Capitalisation (as at month end)

20.4

20

.6

20.8

21

.8

21.9

22

.0

21.7

2

2.1

22

.2

22.7

22

.4

23.

0

23.3

23

.7

23.9

2

4.0

24

.1

24.3

24

.8

25.2

(%)

China/Taiwan

USA

Mid-East

Others

5.7

1.6

2.2

1.2

0.2

0.2

11.50

41

22.6 77.4

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117

142

123 129 115 114

132 136

162 171

152

174

146

172

214

196

66

85

159

125

156

123 132 152

214 214

2004

2005

2006

2007

2008

2009

2010

2011

2012

YTD

May

201

3

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

42

Total Annual Contract (Million)

FBMKLCI Futures

Crude Palm Oil Futures

Others

Open Interest (000’)

Quarterly (Average Daily Contracts 000’)

FMBKLCI Futures

Crude Palm Oil Futures

Others

Open Interest (000’)

26%

74

%

2.6 2.5

4.2

6.2 6.1 6.1 6.2

8.4

4.4

23%

29

``

77%

24 22

24 23 25

28

37

32 34 35

31

40 42 44

Derivatives Market Activity

9.6

45

42

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Derivatives Market Demography

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.

31 19 14 16 16 13 15 15 20 21 19 17 20

45

48 45 43 40

40 41 46 52 44 42 25

33

3

6 5

3 3 2 2

2

3 2

2

2

14

23

31 37

40 45

42 37

26

33 37

56

47

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 31 May 2013

(%) FKLI

40 38 35 33 35 31 25 27 36 34 34 36 32

15 21 26 24 23

27 34 38

27 26 24 19 17

4 6 4

3 2 1 1 1

1 1

1

27 21 18

20 22 25 22 15 17

15 13 12 10

14 14 17 20 18 16 18 20 19 25 28 32

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 31 May 2013

(%) FCPO

Local

Domestic Retail

Domestic Institutions

Foreign Institutions Local

Domestic Retail Domestic Institutions

Foreign Institutions Foreign Retail

June – Dec

2012

June - Dec

2012

43

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Sound Macro Environment We are fundamentally strong

GDP Growth • 5.6% for 2012 & Projected 5% for 2013

Healthy International Reserves

Strong Banking Sector & Ample Liquidity

• > 90% of assets are RM denominated • Net Impaired Loans ratio : 1.4% @ Nov 2012

Conducive Domestic Interest Rates • Overnight policy rate: 3.0%

Manageable Inflation • Modest 2.50 – 3.00 for 2012

(Source: BNM)

• USD141 billion @ 31st May 2013

44

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www.bursamalaysia.com

KOAY LEAN LEE [email protected]

603-2034 7306

Disclaimer :

Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this Presentation.

Whilst the Company endeavours to ensure that the contents in the presentation booklet are accurate, complete or have been obtained from sources believed by the Company to be accurate and reliable, neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation.

In no event shall the Company be liable for any claim, howsoever arising, out of or in relation to this presentation booklet to the recipient of this presentation booklet and/or to any other third party.

© Bursa Malaysia 2013

INVESTOR RELATIONS CONTACT INFORMATION

E-mail : [email protected] Fax : 603-2732 6160

MUHAMMAD ALI [email protected]

603-2034 7673

LIM SIEW CHING [email protected]

603-2034 7277

NURHAFIZAWATI HANAFFI [email protected]

603-2034 7484