We have explained in depth the primary reasons for our languishing stock market, supported by statistics, most recently in our four-part series on the lingering after-effects of Malaysia’s capital controls imposed during the Asian financial crisis (AFC). For a quick recap, Malaysia’s capital controls were unconventional, certainly compared to strategies embraced by our equally embattled neighbours during the crisis.
When you are seriously injured, it hurts. Pain medications (like steroids) can help reduce this hurt but they do not obviate the need for rehabilitation, or surgical intervention, which requires some suffering, perhaps sacrifices, certainly effort and time. In other words, easy, short-term remedies without addressing the underlying problems have long-term consequences that will ultimately compound the pain.
We have written about the chronic underperformance of Bursa Malaysia numerous times in the past. It is an important subject. A vibrant capital market provides a vital source of funding for investments by domestic companies while the listing of foreign companies on the local bourse can build new ecosystems and create employment opportunities, transfer of knowledge, skills and technology.
