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Prime Minister Datuk Seri Najib Tun Razak today unveiled the second Capital Market Masterplan or CMP2 as a successor to the highly-successful first plan, which in the next 10 years is forecast to swell the value of the capital market to RM5.8 trillion through greater internationilisation from RM2 trillion now.

He said CMP2 would come into force immediately under the Securities Commission’s annual business plan with changes to the regulatory framework for fundraising and product regulation to slash unnecessary red tape and lead to faster turnaround of approvals.

Aimed at unlocking the potential of the market, Najib, who is also Finance Minister, said that there would be a new dual licensing scheme to make it easier for dealers in the equity market to become licensed to trade in the derivatives

market.

There were also plans to increase the number of Proprietary Day Traders by almost threefold to enable more dealer representatives to become specialised traders, he said at the “Invest Malaysia 2011″ conference attended by captains of industry, fund managers and institutional investors and more than 850 delegates from over 200 corporations from Malaysia and the world over.

Also present at the function were Tun Mohamed Dzaiddin Haji Abdullah, chairman of Bursa Malaysia, Tnn Sri Dr Zeti Akhtar Aziz, Bank Negara Malaysia Governor, Tan Sri Zarinah Anwar, chairman of Securities Commission, Tan Sri Megat Zaharuddin Megat Mohd Nor, chairman of Maybank Goup, Datuk Tajuddin Atan,

the new chief executive officer of Bursa Malaysia and Datuk Seri Abdul Wahid Omar, the chief executive officer of Maybank Group.

“These are just three of the CMP2 programmes, and they will come into force from the third quarter of this year – no distractions, no delays, just swift, effective action.

“We must do everything we can to ensure that Malaysia’s capital market doesn’t just grow, but grows with minimal risks in a well-regulated environment,” he said, reaffirming the government’s seriousness in accelerating economic growth and the social development in Malaysia.

The first CMP was successful in making Malaysia’s capital market to grow to RM2 trillion despite starting from the narrowest of bases, he said.

“Our stock market is home to more public listed companies than any other inside Asean, our bond market is the third-largest in the whole of Asia when benchmarked against GDP, and our Islamic capital market leads the world,” he said.

The current forecasts for the capital market size is to more than double to RM4.5 trillion by 2020, and with greater internationalisation this figure could increase to as much as RM5.8 trillion over the same period, he said.

Najib said one of the key priorities for CMP2 is to strengthen the role of the capital market in promoting capital formation from the start-up stage to the financing of innovative ventures, big new projects and cutting-edge green technology.

To achieve this, the government will allocate more funds to the venture capital and private equity industries through formalising regulatory oversight and providing targeted incentives and support.

“And to boost large-scale transactions, access to the bond market will also be widened, strengthening investor appetite for a wide range of debt products and credit risks, expanding the participation of the investment management industry and retail investors in fixed income investments, and enhancing the

market infrastructure,” he said.

Among others, he said Malaysia’s high savings are expected to drive the rapid growth of the investment management industry, with assets under management projected to rise from RM377.4 billion in 2010 to a very substantial RM1.6 trillion in 2020.

Strong growth within the asset management industry is a key feature of any country in transition to becoming a fully developed nation.

As a reflection of the widespread confidence in Malaysia’s investment management industry, he said the penetration rate of the unit trust industry is expected to almost double from 18 per cent in 2010 to 34 per cent in 2020 – levels more commonly associated with developed markets.

This will, in turn, substantially increase the creation of income-generating assets to meet the needs of domestic institutional investors, he said.

Hence, to enhance intermediation efficiency in recycling domestic savings into financing the development of a diverse and vibrant economy, there will be a review of the system-wide effects of institutional investment strategies, particularly to ensure the optimal deployment of GLIC funds.

“More efficient intermediation of national savings will have far-reaching effects on accelerating capital formation, private sector participation, secondary market liquidity, risk-taking and expanding product and service diversity,” he said.

He said efforts will also be made to attract specialist fund managers and to promote greater diversity in investment strategies, strengthening the links between national savings and economic growth.

Expanding the number of products on the derivatives market is another development that will be crucial to deepening market liquidity, improving the ability to trade across markets and to hedge risks.

Specifically for the Islamic finance and banking sector, Najib said the task now for the industry is to shift the focus of Islamic finance from serving domestic needs towards tapping the tremendous growth opportunities from intermediating international investments and corporate transactions.

The internationalisation of the capital market is a necessary pre-requisite to strengthening Malaysia’s Islamic Capital Market hub – set to increase almost threefold from RM1.1 trillion in 2010 to RM2.9 trillion in 2020.

CMP2 outlines strategies to enhance the distinctive value propositions offered by Malaysia for a broad range of Islamic intermediation activities, including increasing our capacity to structure cross-border transactions to make further inroads into the international sukuk market.

In addition, the Securities Commission will collaborate with key industry players to expand the range of Shariah-compliant stock broking products and services and build greater critical mass for the development of onshore portfolio management.

A seeding strategy will be developed to increase the diversification of Islamic investment strategies, particularly in nurturing high value-add Islamic fund management services such as the Shariah-compliant venture capital and private equity industries that invest based on the Islamic principles of active

partnership and socially-responsible investing.

The Securities Commission will also work to encourage the wider shift from a Shariah-compliant approach to a Shariah-based approach, promoting higher levels of innovation and international marketability, he said.

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Proton is edging closer to regaining its top spot in the car market, five years after losing that position to Perodua.

Sales figures show that the gap in vehicle sales between national carmakers Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is narrowing rapidly.

In the first quarter of this year, Proton recorded sales of 44,870 units while according to analysts, it is likely that Perodua sold about 45,000 vehicles.

Perodua is expected to release its confirmed 2011 first quarter sales figures on Friday.

At Proton’s factory in Shah Alam.

For the January-February period this year, Malaysian Automotive Association (MAA) reports showed that Proton and Perodua recorded vehicle sales of 27,365 and 27,713 units respectively.

Proton’s top-selling car is the current-generation Saga, followed by the Persona, Exora and Inspira.

The Myvi remained as Perodua’s best-selling car, followed by the Viva and Alza. For the past five years, Perodua has been the top-selling national carmaker.

Last year, the company enjoyed an all-time record sales of 188,641 units while Proton sold a total of 157,274 vehicles.

Proton’s loss of its crown as the top-selling national carmaker can be traced back to 2006, when Perodua outpaced Proton significantly by selling 152,733 cars.

The same year saw Proton sales dipping to 115,538 units (compared with 166,118 units in 2005).

Perodua’s star rose with the Myvi, which was launched in May 2005 and rapidly became the nation’s best-selling car over the next few years.

However, in recent years, Proton has narrowed the sales gap considerably with successful models such as the current-generation Saga, which sold 72,303 units last year (compared with Myvi sales of 77,657 units).

An automotive analyst with a local research firm said Proton had done well with the car models released in the past three years.

“Also, the strong 2011 first-quarter sales performance can be partly attributed to the Inspira which created new excitement when it was launched last November. Sales for a new car model is usually very strong in the first few months,” she said.

Meanwhile, an OSK Research automotive analyst said Proton had a good chance of overtaking Perodua in 2013.

“Public perception of Proton cars has improved in recent years. Last year, Proton exported about 14% of its total production. Also, in the near future, Proton is likely to have a 1.6-litre turbo-charged engine for its Exora. There is also a strong possibility of a global compact car introduction by 2013 in a tie-up with Nissan.”

The OSK Research analyst pointed out that Proton sales were also boosted by an exchange programme, which begun in mid-February and will end on April 30, where customers could trade in their cars (10 years old and above) and obtain rebates for a new Gen2, Waja or Savvy.

Discounts offered are up to RM6,000 and RM4,000 for 2010 and 2011 Proton models respectively.

Also, the impending launch of a Myvi replacement model, which is believed to be in the second half of this year, might have cooled Perodua sales.

Both analysts said many car buyers were holding back purchases while waiting for the new Myvi to be launched.

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Carlsberg Brewery Malaysia Bhd expects to maintain its margins this year despite high commodity prices as it has locked in up to 90% of its raw material prices for the year.

Its managing director Soren Ravn said in the next three months the company would have to decide on raw material prices for next year and this would entail, among others, hedging at least 50% of raw material prices.

“Raw material prices like malt and aluminium for beer cans have increased by 30% from a year ago. We do not expect this rise to immediately impact our earnings this year as we have already locked in raw material prices.

“If prices were to persist next year, it will still not have much impact on our earnings due to hedging,” he said at a press conference in conjunction with the relaunch of its Carlsberg brand. This initiative occurred simultaneously across more than 140 markets in which the Carlsberg group operates.

Carlsberg, currently among the top five brands in the country, is banking on organic growth and would focus on revenue generation rather than volume, Ravn said.

Asked whether the relaunch of its brand would drive sales, he said, without specifying numbers, that it would judging from the launch of its earlier products.

“When we launched the smaller version bottle of our beer two years ago it managed to uplift our sales by 20% to date. Hopefully, with a bigger bottle, we hope to rake in more sales,” he said.

Going forward, he said the acquisition of Carlsberg Singapore Ptd Ltd and subsidiary Luen Heng F&B Sdn Bhd would provide growth.

After more than two years in the making, the group finally unveiled its major global relaunch brand with a new slogan “That Calls for a Carlsberg”.

He said for the first time, Carlsberg would share the same core visual identity of the brand worldwide, adding that it would give the brand the same look and feel in terms of packaging and bottles across all markets.

According to Ravn, Malaysia is an important contributor to Carlsberg worldwide’s revenue besides Denmark and Europe.

For the financial year ended Dec 31, 2010, the group with its strengthened brand portfolio and the successful integration of Carlsberg Singapore achieved RM1.4bil in revenue for the year ended 31 Dec 31, 2010, a 31% growth over the previous year.

Its profit after tax stood at RM134.1mil with growth in profitability from both the Malaysian segment and the full year’s inclusion of the consolidated results of Carlsberg Singapore.

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