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The chief of Malaysia’s stock exchange wants to see certain regulatory constraints removed to help improve retail participation in stock trading.

Constraints like the 30 per cent Bumiputera quota for licenced dealers, for example, has had an impact on limiting the growth of remisiers and dealers in the country.

This, in turn, has hampered retail investor growth.

“It’s fine to have this requirement, but if it’s getting in the way of the growth of the industry, then I think we should consider some other ways of encouraging more Bumiputera participation in the industry,” Bursa Malaysia Bhd chief executive officer Datuk Seri Yusli Mohamed Yusof told Business Times in a telephone interview.

He was commenting on his “wish list” of changes to improve Malaysia’s capital market.

“We want to have our capital market on a level playing field with other capital markets around us. So we hope some of these issues can be (addressed), if not at (the upcoming) Invest Malaysia 2010, then at least sometime in the near future,” he said.

Prime Minister Datuk Seri Najib Razak is expected to unveil initial details of a new economic model for the country at the conference on Tuesday, and this may include improvements to the capital market.

Bursa has for some years now been trying to improve retail participation in the stock market, with not much effective results.

“We rely a lot on the retail broker and remisier base to tap into the retail investors segment. But if you study the statistics over the last 10 to 15 years, the number of retail brokers and remisiers hasn’t grown,” he lamented.

The number of active remisiers has shrunk “quite substantially”, and this will get in the way of Bursa trying to grow the retail segment.

Retail investors constitute between 20 per cent and 25 per cent of trading value now, compared with about 60 per cent in 1999.

Yusli also thinks that more foreign brokers should be allowed to serve investors, particularly retail investors, as this would stir innovation in the industry.

Retail investors currently don’t have much choice in terms of who provides them products and services apart from local brokers, he said.

“We have a very strong middle-class, which I think is not being adequately serviced by our retail brokers,” he remarked

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Bursa Malaysia Securities Bhd has decided to dismiss Prime Utilities Bhd’s appeal and to de-list the securities of the company on April 2, 2010.

In a statement, Bursa said the decision was made after due consideration of all the facts and circumstances of the matter including the company’s representation that it could recover from its financial condition by 2012.

“Accordingly, the securities of prime will be removed from the official list of Bursa Securities on April 2.

“Prime is required to communicate Bursa Securities’ decision to its shareholders,” it said.

The stock exchange regulator said upon delisting Prime would continue to exist but as an unlisted entity.

“Prime is still able to its operations and business and proceed with its corporate restructuring and the shareholders can still be rewarded by the company’s performance,” Bursa said.

“However, shareholders will be holding shares which are no longer quoted and traded on Bursa Securities,” it added.

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HAI-O Enterprise Bhd’s net profit rose by 54 per cent to RM57.18 million for the nine-month period ended January 31, 2010, from RM37.14 million in the previous corresponding period.

The group achieved a higher revenue of RM412.23 million as against RM302.33 million previously, it said in a filing to Bursa Malaysia today.

The increase in profit was mainly due to higher revenue achieved by the multi-level marketing (MLM) division and higher group”s rental income received, Hai-O Enterprise said.

The group will continue to focus on its three main divisions, namely the MLM, wholesale and retail divisions, it said.

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