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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published May 8, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>No repeat of Clob, KL assures S'pore investors
He asks them to look at the opportunities in the M'sian market and judge for themselves
By S JAYASANKARAN
IN KUALA LUMPUR
YUSLI Mohamad Yusoff, chief executive of Bursa Malaysia, yesterday assured Singapore investors in the Kuala Lumpur stock exchange that there would never be a repeat of the Central Limit Order Book (Clob) fiasco which occurred after the 1998 Asian financial crisis.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR YUSLI
It would be a shame if investors continue to ignore opportunities because of negative perceptions, he says</TD></TR></TBODY></TABLE>Mr Yusli was speaking to members of the media ahead of the Malaysia Gems 2010 investor conference to be held in Singapore today. The conference will bring senior managers from some of Malaysia's better known listed companies face to face with retail investors.
The Clob episode occurred after Malaysia imposed capital controls in 1998, trapping over 170,000 mainly Singaporean investors who found that their Malaysian shares on the exchange were frozen and illiquid. Kuala Lumpur had never officially recognised Clob to begin with.
The furore caused a diplomatic chill between the two countries and the issue wasn't resolved until several years later with investors taking massive haircuts. It made an indelible impression on many Singapore investors who never looked at Malaysian stocks again.
Mr Yusli conceded that Singapore investment had fallen off. 'But everyone has moved on,' he said yesterday. 'Now there is no more Clob and only one order book where investing in Malaysia is concerned. It is as safe a market as any and if anyone invests today in the Malaysian market directly, I can assure you there will be no repeat of Clob.'
'Investors should look at the opportunities and judge for themselves,' Mr Yusli added. 'There are Malaysian companies out there with very strong fundamentals and it would be a shame if investors don't avail themselves of the opportunities.'
The chief executive of the Malaysian stock exchange was unsure of the number of Singaporeans in the Malaysian market. 'Prior to the crisis, 30-40 per cent of the daily trades was by foreign investors,' he estimated. 'Now it's dropped to around 20 per cent and we are trying to change that.'
Mr Yusli attributed the lack of interest to a 'lot of negative perceptions about Malaysia over the last two to three years due to various political and social factors'.
He stressed that much of this was overblown. 'Our corporates have done quite well despite the global financial crisis,' he said. 'It would be a shame if investors continue to ignore opportunities because of negative perceptions.'
The Malaysia Gems Conference is being promoted jointly by Bursa, Singapore Press Holdings (SPH) and ShareInvestor, an SPH unit. It will feature pitches from some of Malaysia's best companies, such as semiconductor manufacturer Unisem, property and power generator Mudajaya, oil and gas company Wah Seong and rubber glove maker Supermax.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>No repeat of Clob, KL assures S'pore investors
He asks them to look at the opportunities in the M'sian market and judge for themselves
By S JAYASANKARAN
IN KUALA LUMPUR
YUSLI Mohamad Yusoff, chief executive of Bursa Malaysia, yesterday assured Singapore investors in the Kuala Lumpur stock exchange that there would never be a repeat of the Central Limit Order Book (Clob) fiasco which occurred after the 1998 Asian financial crisis.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR YUSLIIt would be a shame if investors continue to ignore opportunities because of negative perceptions, he says</TD></TR></TBODY></TABLE>Mr Yusli was speaking to members of the media ahead of the Malaysia Gems 2010 investor conference to be held in Singapore today. The conference will bring senior managers from some of Malaysia's better known listed companies face to face with retail investors.
The Clob episode occurred after Malaysia imposed capital controls in 1998, trapping over 170,000 mainly Singaporean investors who found that their Malaysian shares on the exchange were frozen and illiquid. Kuala Lumpur had never officially recognised Clob to begin with.
The furore caused a diplomatic chill between the two countries and the issue wasn't resolved until several years later with investors taking massive haircuts. It made an indelible impression on many Singapore investors who never looked at Malaysian stocks again.
Mr Yusli conceded that Singapore investment had fallen off. 'But everyone has moved on,' he said yesterday. 'Now there is no more Clob and only one order book where investing in Malaysia is concerned. It is as safe a market as any and if anyone invests today in the Malaysian market directly, I can assure you there will be no repeat of Clob.'
'Investors should look at the opportunities and judge for themselves,' Mr Yusli added. 'There are Malaysian companies out there with very strong fundamentals and it would be a shame if investors don't avail themselves of the opportunities.'
The chief executive of the Malaysian stock exchange was unsure of the number of Singaporeans in the Malaysian market. 'Prior to the crisis, 30-40 per cent of the daily trades was by foreign investors,' he estimated. 'Now it's dropped to around 20 per cent and we are trying to change that.'
Mr Yusli attributed the lack of interest to a 'lot of negative perceptions about Malaysia over the last two to three years due to various political and social factors'.
He stressed that much of this was overblown. 'Our corporates have done quite well despite the global financial crisis,' he said. 'It would be a shame if investors continue to ignore opportunities because of negative perceptions.'
The Malaysia Gems Conference is being promoted jointly by Bursa, Singapore Press Holdings (SPH) and ShareInvestor, an SPH unit. It will feature pitches from some of Malaysia's best companies, such as semiconductor manufacturer Unisem, property and power generator Mudajaya, oil and gas company Wah Seong and rubber glove maker Supermax.
</TD></TR></TBODY></TABLE>
