The Capital Market Masterplan 2 (CMP2) was built based on the foundation in the Capital Market Masterplan 1 (2001-2010) that aimed to create a capital market that would be competitive in meeting the country’s capital, and investment needs to support long-term nation-building efforts.

CMP2 outlines the strategies to transform the competitive dynamics of the capital market over the next ten years. It outlines growth strategies to address critical structural challenges and essential linkages to foster a more diverse and innovative intermediation environment and to nurture new growth opportunities that would expand Malaysia’s capital markets.  Additionally, CMP2 outlines governance strategies to ensure robust regulatory oversight and active stakeholder participation to enhance confidence in the integrity and soundness of Malaysia’s capital market.

Financial innovation can create market-based solutions to mobilize investments in technology and projects that promote sustainable and inclusive development. There is room to expand the role of the capital market in developing innovative approaches to finance environmental projects such as the development of alternative energy sources or clean technologies. A broad range of financing instruments can also be designed to finance community infrastructure development and the building of educational, healthcare and cultural facilities. The momentum of socially responsible investing (SRI) funds reflects the growing interest of institutional investors to build a sustainable economy that generates long-term wealth.