Jakarta bourse's entry will boost Asean Trading Link

by JF Fri 14 Jun 2013, 12:00

KUALA LUMPUR: The Indonesian Stock Exchange's inclusion into the newly-set up Asean Trading Link will boost regional competitiveness, Bursa Malaysia chief executive officer Datuk Tajuddin Atan said.

"We hope Indonesia will hop on soon," he said during a panel discussion on "Aseanised Corporate Malaysia: Primed for AEC 2015" at Invest Malaysia yesterday.

The Asean Trading Link, connecting Bursa Malaysia, Singapore Exchange and the Stock Exchange of Thailand since late last year, is a platform for retail investors to take advantage of the region's opportunities.

It is estimated that the three markets boast a combined US$1.6 trillion (RM5 trillion) in market capitalisation.

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In an "Aseanised" concept, Tajudin said, 45 per cent of Malaysian firms have revenues generated from abroad.

Foreign participation in Bursa Malaysia has increased by 30 per cent since 2009.

Tajuddin said the Asean Economic Community in 2015 and the Trans-Pacific Partnership taking shape by the end of the year, pushed the need for regional exchanges to join forces to increase the level of capitalisation and liquidity.

Maybank Investment Bank CEO Tengku Datuk Zafrul Tengku Aziz described Maybank as an Aseanised bank with a long-term strategy to expand in the region. Its presence in the region has further expanded the growth of companies like SapuraKencana Petroleum Bhd and AirAsia Bhd.

Recognised as the region's fourth largest lender, Maybank's expansion overseas began with the purchase of a controlling stake in PT Bank Internasional Indonesia in 2008.

Last year, the bank earned 30 per cent of its pre-tax profit from overseas operations, the bulk of it from Indonesia and Singapore.

Maybank aims to further extend its footprint to Asean's 10-member countries as the region moves toward economic integration by 2015.

"Intra-Asean trade is set to expand to 35 per cent, come 2015 and this will benefit companies and banks like Maybank," Tengku Zafrul said.

SapuraKencana president Tan Sri Shahril Shamsuddin said financial and legal infrastructure need to be in place within the Asean region to facilitate companies like SapuraKencana to share energy resources.

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