According to the Securities Commission Malaysia (SC), it has widened the categories of sophisticated investors to allow more investors to expand their investment options while issuers can now tap into a larger pool of sophisticated investors. These were among the several amendments to the Capital Markets and Services Act 2007 (CMSA), which came into force on Thursday July 1, 2021. The amendments, effected through changes made to Schedules 6 and 7 of the CMSA, have widened the categories of sophisticated investors. Sophisticated investors will now include among others, individuals with investments of RM1mil in capital market products, either on their own or through joint accounts with their spouse; CEOs and directors of licensed or registered persons under the CMSA; and corporations that manage funds of their companies with assets of more than RM10mil. For the full list of qualifying criteria of sophisticated investors, please click https://www.sc.com.my/api/documentms/download.ashx?id=72b64b5c-313b-44dc-9841-36e0d50906ac. In addition, the amendments to Schedules 6 and 7 will enable Bursa Malaysia to undertake the registration of ACE Market prospectuses effective Jan 1, 2022. Upon the transfer of the registration function, which is currently assumed by the SC, Bursa will become the one-stop centre for all approvals in relation to ACE Market listing. Also Schedule 5 of the CMSA, which sets out the type of corporate proposals that do not require the SC’s approval, has been amended to include the following:
A) Initial exchange offering of digital assets through a recognised market operator; and
B) An initial public offering (IPO) or cross-listing of the shares of a public company or listed corporation on a stock exchange outside Malaysia.
For more information on the amendments, click https://www.sc.com.my/regulation/acts/capital-markets-and-services-act-2007
Hong Leong Bank views renewable energy sector in positive light
According to Hong Leong Bank Bhd (HLB) business corporate banking managing director Yow Kuan Tuck, the bank has approved up to RM1.3 billion in renewable energy (RE) financing for solar, biomass, biogas and small hydropower projects through its climate-positive financing programme introduced in 2018. The bank has identified RE as a commercially viable industry with significant growth potential and introduced the HLB SME Solar Financing Programme in February this year, a green energy financing facility specially developed for Malaysian SMEs looking to install small-scale solar photovoltaic systems. It aims to encourage more businesses to look at sustainability as an investment which can bring long-term competitive advantages and as a gateway to build business resilience against future disruptions, cushion against future rise in energy costs as well as meeting the rising demand of conscious consumerism for sustainable businesses. On top of providing tailored financing specific to RE projects, the bank has expanded its RE team of specialists to further grow this promising portfolio. The RE specialists work closely with customers and provide value-added services, including advisory in guiding new energy players on warranties and guarantees coverage for equipment as well as helping clients evaluate the feasibility and generation capacity of their projects. Sustainability as a mindset and culture is a necessity in every business and industry, including financial institutions. The links between a financial institution and climate change or low carbon footprint may not be as intuitive at first glance but where and how we invest, loan or channel money impacts the way businesses are run and how well the economy performs in the long run. As a bank, it has a responsibility in steering the sustainability transition and mindset amongst SME and corporate customers. It is done with the provision of working together in finding opportunities and solutions to balance profit, people and the planet, as well as enable households, businesses and the economy to become more resilient to climate change impacts.
Note From Publisher: In this issue, please turn to Pages 17 to 24 for the BrandFinance special report on Marketing Restrictions. It talks about the regulations placed upon legal products relating to expression of brand identity and promotion to customers and its impact on brands’ valuation. Read the views of marketing experts from global brands. View the full Brand Finance Marketing Restrictions 2021 report here
Eye On The Markets
This week, on Thursday (1July), the Ringgit was 4.1570 against the USD from 4.1430 on Monday (28Jun). Meanwhile, the Ringgit was 3.0882 to the Sing Dollar on Thursday (1July). On Monday (28Jun), the FBM KLCI opened at 1557.46. As at Friday (2July) 10:00am, the FBM KLCI is down 24.75 points for the week at 1532.71. Over in US, the overnight Dow Jones Industrial Average closed up 131.02 points (+0.38%) to 34,633.53 whilst the NASDAQ added 18.4 points (+0.13%) to 14,522.40.
