CAPITAL MARKET TO REFLECT LIBERALISATION GAINS NEXT YEAR

KUALA LUMPUR, July 6 (Bernama) -- The effects of the liberalisation measures
announced last week are likely be reflected in the capital market next year,
Deputy Finance Minister Chor Chee Heung said Monday.

This will also be in line with general expectation that the global economy
is likely to recover next year, he said.

"The effects have not been well digested yet. I believe it will be a
long-term process and with mechanisms in place coupled with the stimulus
packages, it will augur well for the capital market," he told reporters after
officiating the Fourth Chief Financial Officers' Summit here.

He was responding to a question on the lacklustre trading despite the
government's announcement to further liberalise foreign equity in listing
procedures.

Chor said the local bourse has been on the uptrend for the past two to three
months and so it has started to consolidate.

"After that, we will have another phase of upward surge," he said.

MIMB Investment Bank, in a recent research note, said the Kuala Lumpur
Composite Index (KLCI) had performed reasonably well compared to Japan's Nikkei
and the Philippines Index (PSE) in the first half of 2009.

KLCI, now known as FTSE Bursa Malaysia KLCI, had gained 20 percent since
early January compared to nine percent for the Nikkei and 15 percent for the
PSE.

On country's new economic model, Chor said by next year, the public is
likely to know the kind of economic model that the country will adopt.

"They are working hard on it, the Economic Planning Unit (EPU) and the
Finance Ministry, and I supposed by next year, we should know what the model
will be," he said.

"It will be what we call a robust economic model and hopefully, it will
transform us from a middle income economy to higher income economy," he added.

Earlier, Chor said the role of chief financial officers (CFOs) is important,
especially in dealing with the tough investment climate by becoming more adept
and accurate at valuing assets while being good at handling the increasing
oversight and regulations imposed in the post-subprime era.

"CFOs play a crucial role, not just in ensuring probity in financial
stewardship but also in setting the right ethical example for the rest of the
organisation to follow," he said.

In order to be effective corporate navigators, CFOs will have to broaden and
deepen their skills set against the volatile economic circumstances and complex
market conditions, according to Chor.

The two-day summit, starting today, is organised by the Association of
Chartered Certified Accountants (ACCA) in collaboration with the Asian Strategy
and Leadership Institute (ASLI).
-- BERNAMA