SC calls on younger generation to participate in capital market

KUALA LUMPUR: Malaysia needs more young people to invest in the capital market to ensure that it remains vibrant, said Securities Commission Malaysia (SC) chairman Datuk Seri Dr Awang Adek Hussin.

So far, he said investors aged 45 and below only constitute 7.0 per cent of total investors in the stock market, and the number of those in the 20-30 age bracket is expected to be even lower.

He noted that in the stockbroking industry, for instance, most remisiers are aged 50 and above.

“The capital market industry needs an injection of new blood, both as employees as well as investors.

“We need young executives to attract young investors as they are more tech-savvy and they understand each other better,” he said in his opening speech at the commencement of the first cohort of the InvestED Leadership Programme 2023 today.

The SC-led flagship capital market graduate programme entails a one-month comprehensive and interactive learning module, followed by a six-month on-the-job training with investED partners from the capital market industry.

Response to the first cohort of the programme was overwhelming as it had received more than 2,000 applications, of which only 200 were selected to undergo the specially curated one-month learning module at the Asia School of Business (ASB).

Awang Adek said investED is the first-ever strategic tie-up between the SC, the Ministry of Finance, the Ministry of Higher Education (MOHE), the capital market industry and universities, aimed at developing a sustainable talent pipeline for the capital market.

“The SC’s partnership with ASB today further strengthens the programme’s credibility and reinforces our commitment to provide programme participants with the necessary capital market industry knowledge needed to be market ready.

“We see this initiative as vital for an industry with high talent mobility and demand like the capital market,” he said.

He said ASB’s expertise and resources will undoubtedly enhance the learning experience for the programme participants, while ensuring that they receive a comprehensive understanding of the capital market and its intricacies.

“My hope is that the participants would also develop strong leadership qualities, good work attitude, effective communication skills, and some basic understanding of the industry,” he said.

Awang Adek said the programme will be carried out for three years and its impact will be felt much more in the coming years.

During the same event, the SC chairman also announced on behalf of the Association of Stockbroking Companies Malaysia that stockbroking companies have agreed to introduce an adoption scheme.

“Under the scheme, each company would adopt a university to plan and work with students and lecturers to promote greater understanding and appreciation of the capital market.

“For instance, the company can assist lecturers in crafting a course related to the capital market to be taught to students,” he said.

He said participating companies could also assist students in establishing investing clubs to promote greater awareness of investment opportunities in the capital market.

These efforts would enrich students’ learning experience and expose them to the workings of the capital market while enhancing their employability and reducing their vulnerabilities to financial scams.

“I hope the MOHE and universities will be receptive to this novel idea, as I am sure that this is very much in line with the wishes of our Prime Minister Datuk Seri Anwar Ibrahim and MOHE to see greater collaborative efforts between university and industry.

“The proposed adoption scheme will add a new dimension to this collaboration,” he said.

Meanwhile, Awang Adek said the state elections would not have any adverse effect on the capital market, as it is a normal and temporary event.

“The federal government is intact because this is only the state election, not a parliamentary election.

“In the past few weeks, we have seen the market improving, and I’m very confident that this sentiment will continue in the future,” he said. – BK: