MALAYSIA EXCHANGE NOT SUFFERING FROM CRISIS OF CONFIDENCE

KUALA LUMPUR, Dec 7 Bernama) -- Malaysia Exchange is not suffering from a
crisis of confidence and this is evident from the 48 per cent improvement in the
bourse's performance since the stimulus package and market liberalisation
policies were introduced by Prime Minister Najib Tun Razak, the House of
Representatives was informed Monday.

Deputy Finance Minister Chor Chee Heung said against the backdrop of a
global economic crisis, the benchmark FTSE Malaysia Exchange Kuala Lumpur
Composite Index (FBM KLCI), which dipped to a low of 800 points mid-October
2008, has recovered to hover around the 1,250 points level.

He was confident sentiment on the stock market would improve further and the
FBM KLCI would test the 1,400 points level beginning next year.

" Bourses the world over were badly affected by the global economic crisis
and Malaysia was no exception with the FBM KLCI falling to a low of 800 points.

" However, with the injection of financial stimulus packages, at home and in
other countries, we have seen stock markets worldwide improving," he said in a
supplementary question to Nur Jazlan Mohamed, a MP.

While saying that there was a high level of investor confidence in the
local bourse, Chor said this was a result of the various steps taken by the
government to encourage international companies to be listed on Malaysia
Exchange.

He added that under market liberalisation policies announced in April, the
listing requirements for both local and foreign companies have been streamlined.

Foreign companies are now allowed to have 100 per cent ownernship and the
Securities Commission (SC) have also speeded up approval for such companies
seeking a listing on the local bourse.

Besides, Chor said Malaysia Exchange has forged a smart partnership with
foreign investment banks, initial public offer (IPO) advisors and market
participants to tap resources for new IPOs.

In reply to a question from Opposition leader Anwar Ibrahim who asked why
the SC and Bursa had failed to woo investors despite several initiatives, Chor
said since the merger of the main board and second board on Aug 3, 2009, there
were now 959 companies listed on the main market.

The Deputy Finance Minister also said that Malaysia Exchange was the
second largest bourse, in Southeast Asia, with a market capitalisation of RM992
billion (US$291.7 billion) as at Dec 4, 2009.

" SC and Malaysia Exchange have taken on an integrated approach and
liberalised the market to woo more foreign companies without comprising on
Bumiputera (son of soil) participation.

" Within a year, the government has attracted three companies from China to
be listed on the main market of Malaysia Exchange," he said.

Chor said six to seven foreign companies are expected to be listed on the
local bourse next year.

-- BERNAMA