IT is often said that political instability is one of the main reasons why investors are shunning Bursa Malaysia.
THIS train of thought is extremely flawed and downright wrong, because it is not supported by macro economic data,namely the GDP figures.
From 2019 to 2022, the Malaysian GDP had grown by 10.67 per cent with GDP coming in at 4.41 per cent in 2019, negative 5.53 per cent in 2020, 3.09 per cent in 2021 and 8.7 per cent in 2022.
During the same period, the stock market READ : has been down by 17.5 per cent, which basically means that the stock market is under performing the real economy by 1.75 times to say the least.
THERE are ample literature to prove that the stock market either moves in tandem with the GDP or moves ahead of the GDP.
ALL right then, let us just make an assumption that the stock market is only good as a forward looking indicator. But even then the numbers do not tally because READ : The gross domestic product in current prices in Malaysia was forecast to continuously increase between 2023 and 2028 by in total 188 billion U.S. dollars (+42.06 percent).
SO why is the stock market in Malaysia showing a 17 per cent regression? It is not due to the politicians but specifically due to the people manning Bursa Malaysia and the Securities Commission playing pucks with ESG, especially the G part which stands for Governance.
UNDER Wahid Omar, Umar Swift and Awang Adek's reign, we are increasingly seen as exchange with no backbone and very weak in the governance part that is the cornerstone of fair play.
CONSIDER this, the SC had only slapped a mere RM3 million fine on the people managing Serba Dinamik, with no criminal charges in place despite READ :The RM17.9 billion hole in Serba Dinamik is as large as the one in 1MDB.
THE ESG platform is all about fair play, and it's nonsensical to believe that we should discriminate against an ex Prime Minister and merely give a tap on the shoulder to private enterprise.
IF the lack of equality and fair play was only confined to that of Serba Dinamik, I believe the market will not be so judgemental but it is spreading like a cancer, and the top people in SC and Bursa Malaysia are sitting on their fat backsides.
CASE in point, has the SC or Bursa Malaysia explained to us, why would someone READ :Who can use RM6 million to buy 120 million Green Packet shares, would go convert the warrants so that they can only own 15 million Green Packet shares.
THE SC and Bursa Malaysia, may not want to explain this matter, but the world's biggest fund had voted with their money .READ : Blackrock immediately sold all their shares in Hong Seng Consolidated, who had provided financing for certain parties to buy into Green Packet.
THE trade above is just the tip of the iceberg, as I have always maintained that the Malaysian stock market is just one article away from either The South China Morning Post or the Singapore Business Times, from being tanked and shamed as a centre of hot money
