Qualampur: Despite the frequent global uncertainties and external shocks, Malaysia’s early public offering (IPO) market is expected to remain flexible with a continuous listing throughout the year, said Barsa Malaysia President Tan Shri Abdul Wahid Umar.
He accepted the unrest prevalent in the global economy, which stems from ups and downs, policy innings and geopolitical stresses.
“On global headwinds and turbulance, we do not really know what will happen further due to applied and adjusting. However, it is important on creating flexibility between Malaysian companies and broad economy.
He said, “What is important to us is to ensure that we create flexibility among companies in Malaysia. This is something we need to do,” she told reporters in Barsa Malaysia, Economic Club Kuala Lumpur and CIMB Roundable today in Barsa Malaysia.
Abdul Wahid said that there is a central public listed companies’ change program for this effort, which was launched three years ago to increase their basic principles and performance.
He said, “The program now includes 326 companies, which represent 64% of the total market capitalization. It focuses on five major areas, including purpose-operating, improving performance, increasing morality, prioritizing the environment, social and governance, and deepening the engagement,” he said.
Bursa’s president expressed optimism on strong basic things, companies may reduce the impact of external shocks. “If listed companies focus on their basic principles and performance, the effects of outsiders can be minimized,” he said.
Abdul Wahid also addressed the concerns of how the current uncertainty can affect the IPO pipeline.
“Last year, we have successfully listed 55 companies. This year, we are targeting 60. So far, 15 companies have been listed – in two main markets and 13 ACE on the market. Another company, MSG Global BHD, will be listed on 15 April, will be brought in a total of 16,” he said.
He said that some companies have opted to delay their listing a bit due to the current market conditions, cited as ‘an extension of an extension in the timeline’ for some IPOs.
However, Abdul Wahid said that he remains optimistic, saying that in the coming months, the market situation once stabilized and external development has more clarity, many of these companies will move forward with their IPOs.
On the issue of American tariffs and their sector-specific effects, he said that the effects vary on the basis of the industry.
“In areas such as electronics, there are still many discounts, so the effect is currently minimal. But instability and policy changes create uncertainty, especially in terms of production and order flow.”
Giving further for Malaysia’s participation in trade discussions in Washington on 23 April, Abdul Wahid reiterated the importance of maintaining a balanced diplomat and trade stance.
“It is important for Malaysia to continue positioning itself as a neutral country, not align with any one block. We should connect with all parties and continue expanding ASEAN and bilateral trade relations. Any decision in international talks should be made the basis in the national interest of Malaysia. Whatever we do, it should be based on the interests of Malaysia.”
