EMERGING ECONOMIES CANNOT REMAIN COMPLACENT

KUALA LUMPUR, Nov 1 (Bernama) -- Regulators of emerging economies cannot remain
complacent but meet the diversified demands of a sophisticated financial sector,
says Chairman Securities Commission Zarinah Anwar.

"Our regulatory framework must evolve to meet the changing requirements.

"Remaining less sophisticated will not isolate emerging economies from global
risks," she said when addressing participants of the 11th Annual Emerging
Markets Programme here Monday.

Zarinah said to become advanced economies, the financial sector cannot remain
"less sophisticated" as companies must evolve to be regional and global in order
to compete effectively.

"Emerging market regulators no longer can disallow complex structured products
because we do not understand them.

"We need to become more sophisticated ourselves to provide the more diverse
instruments that are demanded by equally sophisticated business enterprises.

"They need sophisticated financial products to finance economic activities,
hedge currency trading and invest their profits and reserves," she explained.

Zarinah said as capital market integration deepened, managing global risks would
become key to build the resilience of capital markets in emerging economies.

"Good regulations in emerging markets are about finding the right balance
between encouraging innovation, fostering growth and investor protection, as
well as creating free, fair, efficient and transparent markets," she added.
-- BERNAMA