DISCOVER the Road to Financial FREEDOM!

3 Responses to “Bursa Malaysia Holidays 2010”

1. alan on January 14th, 2010 at 11:17 am

   Gen X prefer bank products over Bursa
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   If indications had been merely anecdotal previously, the data now appears to back it: young Malaysians are shying away from the local stock market, preferring safer banking products instead.

   Even though those below the age of 25 comprise two-thirds of the local population, only 12 per cent of those in their 20s chose shares as an investment option, according to a survey by the stock exchange.

   In the survey of 1,300 respondents, most in the age group opted for conventional banking and financial products such as savings, fixed deposits, insurance or unit trusts. A number chose real estate.

   The results of the survey, commissioned by Bursa Malaysia and undertaken by Synovate, underscore the challenges before the bourse, one of which is how to raise the low level of retail participation especially when the younger generation are fighting shy.

   Bursa chief executive Yusli Mohamed Yusoff concedes the bourse is losing out on an important base, made all the more significant by the plunge in retail participation. From a high of about 70 per cent in the 1990s, retailers now account for an average 25 per cent of the total value of trade. RM1.7 billion worth of shares were traded yesterday.

   “We need to enhance our current business model. The younger generation will not wait for us. If we don’t capture them, they will invest in other products and other markets in future,” The Star quoted Yusli as saying at an industry forum on Tuesday.

   Indeed, the central bank’s liberalisation of foreign exchange administration rules in 2005, which allows individuals and funds to invest greater amounts abroad, has resulted in many Malaysian investors diversifying their investments in other markets. Following the ruling, local funds were quick to establish new funds — mainly feeder funds that track better performing markets.

   Others investors perceive markets such as Singapore or Hong Kong’s as offering quicker and better returns although the risks may be greater. An analyst in her 30s said most of her friends consider the local market dull and have turned to higher beta markets investing either through their brokers or via Internet trading.

   However, an economist noted the lack of a bigger disposable income could be a major factor why the younger set might not consider share investment as a priority or an option, their higher consumption patterns notwithstanding.

   Older Malaysians still find equities a strong option, the bulk or 59 per cent of those aged 40 and above surveyed, choosing the local stock market as an investment option.

   It will be cold comfort to the bourse. Already concerned over its inability to tap the younger generation, the survey also found that of an addressable market of 1.2 million, almost half of potential investors reject shares, while 26 per cent are fence sitters.

   fr:themalaysianinsider.com/index.php/business/49513-gen-x-prefer-bank-products-over-bursa

2. alan on January 16th, 2010 at 5:51 pm

   Boosting retail participation
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   BURSA Malaysia Bhd’s recent forum “Rethink Retail” did not resemble a stock exchange’s event. The forum kicked off with a bang accompanied by a presentation and overwhelming statistics.

   Bursa certainly looks set to revamp its oulook and has put in place the necessary steps to reach out to its future growth engine – youths.

   For starters, Bursa has determined that growth for its retail participation in Malaysia lies with investors in the age group of 20-39.

   Its challenge will be to overcome perceptions and to use the correct channels to connect with the younger generation.

   The statistics

   Currently, out of an investing population of 16.8 million, there are only 200,000 direct retail investors. This is based on CDS accounts with activity seen in the last three years.

   The Internet is a key medium that Bursa will need to tap into, particularly since Synovate Malaysia says that 56% of investors monitor their shares through the Internet.

   IDC Research estimates that there are currently 16 million Internet users in Malaysia.

   As of December 2009, the value of Internet trading via Electronic Client Ordering Service has already increased to 19% since it was first commissioned in 2008.

   The problem, though, is that many young people tend to have rather negative views when it comes buying shares. There is data to prove this.

   A survey spearheaded by Bursa and conducted by Synovate Malaysia to understand the investing attitudes and perceptions of Malaysians revealed that only 12% of investors represent the 20-29 age group, while 59% involve those 40 years and above.

   As for the number of dealers in the market, the younger and older age groups make up 4% and 61% respectively.

   The survey also revealed that in a market of 1.2 million, almost half of potential investors reject shares while 26% sit on the fence when it comes to shares.

   Bursa CEO Datuk Yusli Mohamed Yusoff says that with 67% of the Malaysian population aged below 25, he sees tremendous potential in attracting the younger segment.

   Rethinking retail

   The youth and their addiction to cyberspace is a huge market that is hard to ignore. Nowadays, it is only normal for a typical 16-year-old to be typing away on an assignment, while also checking his email, updating his Facebook status and downloading music.

   Bursa recognises that capturing the hearts of young investors will determine its future growth prospects.

   “We are now undergoing what you call ‘Mediamorphosis’. Mass marketing is dead. Young people now want self expression and personalisation.

   “That is the essence. You need to figure out how to create engagement in a fragmented world,” says Omnicom Media group Malaysia managing director Andreas Vogiatzakis.

   He dubs these youngsters as Generation C – consumers who are constantly connected. Synovate Malaysia research director Ben Llewellyn says many view investing in shares as requiring very high capital over a short investing period with a higher risk premium.

   “People shy away because they feel there is high risk attached to it, they do not have enough money and they don’t know how to invest. Clearly these reasons show a lack of knowledge that can be addressed with education,” he says.

   AirAsia X CEO Azran Osman Rani says to get consumers to think differently, one has to change the business and consumer model. “When we wanted to adopt the low cost model for long-haul flights, everyone said it was impossible.

   “With the American and Hong Kong carriers having tried and failed, people were very sceptical how a small Malaysian company could do it,” he says.

   For the record, AirAsia X’s operating cost of 2.4 US cents per available seat kilometre is the lowest among long-haul airlines.

   Azran says the breakthough for AirAsia X was simply in rethinking its customer segment.

   “Carriers have always focused on the premium market. Today, the focus is on the business people.

   “These people are price insensitive but time sensitive. Our model is to target people who are price insensitive but time insensitive,” he explains.

   AirAsia X also has a utilisation rate of 18 hours per day, which is much higher than the normal 12 to 14 hours achieved by most airlines.

   Keep it simple

   ETrade Australia managing director Stuart Sayers says to generate demand, one has to target the people who gain the most – the brokers.

   “In future, I see more people starting to service themselves. If the broker is not offering value-added services but merely keying in a buy and sell order, investors will rather do it on their own. People want convenience and to avoid being at the behest of their brokers,” says Sayers.

   Hence, in Bursa’s case, he says the strategy would be to make deliberate choices and to keep it simple.

   “Find out what customers want and grow with it. The biggest mistake would be to start with too many different things,” he says.

   ETrade Australia, which sees more Australians trading shares via their iPhones, is already looking to facilitate customers who want to trade using that platform.

   “Right now, 50% of handphone sales in Australia are for the iPhone. There will be a group of people who will cut through glass to be able to trade through their iPhones,” he says.

   Meanwhile, Association of Stockbroking Companies Malaysia president Ahmad Azman says there ought to be a tiered system of licensing for dealers and remisiers.

   “A huge portion of the daily volumes come from dealers and remisiers. They are contributing to the market, so regulators can also make life easier for them.

   “We are, in fact, discouraging people from joining the industry by making them take licensing exams.”

   fr:biz.thestar.com.my/news/story.asp?file=/2010/1/16/business/5466938&sec=business

3. alan on February 1st, 2010 at 9:02 am

   Listing part of steps to ensure continued growth

   IPOH: Listing and privatisation exercises are among the steps to be taken by the Finance Ministry to ensure the national economy continues to grow at a targeted 5% per annum this year.

   Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the Government was moving companies under Ministry of Finance Incorporated into the marketplace with the sole ambition of transforming the nation into a high-income economy.

   It was not a question of money to be made or about increasing revenue for the Government, he added.

   “These companies are also paying dividends to the Government, so this is not the case. It is to restructure the national economy,” he told reporters yesterday.

   Ahmad Husni recently announced that the ministry had identified 17 companies under MOF Inc to be listed on Bursa Malaysia or privatised this year.

   He described the economy as the “forces of demand and supply”.

   “It is the marketplace. So, when we talk about the marketplace, who should be the operator in the marketplace? It should be the private sector and entrepreneurs,” he added.

   fr:thestar.com.my/news/story.asp?file=/2010/2/1/nation/5587467&sec=nation