Malaysian regulatory structures/authorities can be divided into few types. There are Bank Negara Malaysia, securities commission, Bursa Malaysia and others. These is the minister of finance in Malaysian financial system to correcting perceived inefficiencies in the market, reviewing and advising on government’s policies, providing information and protecting investors and so on. Bank Negara Malaysia
Bank Negara Malaysia (BNM) was established under the Central Bank Act on 1958.It is a statutory to promote stability and sound financial structure. BNM act as important role to issue currency and keep reserves safeguarding the value of the currency. BNM control the amount of money of supply by using fiscal policy or monetary policy. Furthermore, BNM is to safeguarding the value of the local currency there is Ringgit Malaysia doesn’t depreciation. In other word, BNM preserving the purchasing power.
The BNM also act as banker and financial agent of the government. The government’s account are managed by BNM. The reason why BNM act as government banker because intimate connection between finance and monetary affairs. However, BNM also manage the national debt and responsible for the floatation of government loan. Next, BNM is also acts as the banker to all banks and to promotes a sound financial structure. In other words, BNM is the “boss” for all member banks like Maybank, Public bank and others. If BNM say “no”, your bank doesn’t formed. That is because BNM holding the decision to licensing for banks and non-banks. Furthermore, BNM as the lender of last resort to all banks. Securities Commission
Securities commission established on 1 March 1993 under the Securities Commission Act 1993. It is the regulatory and developmental body for the capital market, SC is also a self-funding statutory body with investigate and enforcement powers. Why do securities commission exist? Securities commission have their obligation to regulating the take-over and mergers of companies. In other words, takeovers or mergers in Malaysia have to pass through securities commission. If the companies doesn’t meet the SC requirement, which means the takeovers or mergers will be reimbursement. Others, securities commission also act as the “boss” of securities and futures contracts. All matters related to securities and futures contracts are regulating by SC. For example, stock, commercial paper and others. The companies or individual who want to issues or acquire securities have to approved by SC. Moreover, SC also holding the authority to decided whether the corporate can be issued bond or not. Bursa Malaysia Berhad
Bursa Malaysia Berhad was established in 1973. It is a holding company to operates and regulates a fully integrated exchange offering the complete range of exchange related facilities like trading, clearing, settlement and others. Bursa Malaysia has the obligation to ensure orderly dealings in the securities deposited with Bursa Malaysia are step by step and efficient clearing and settlement arrangements for transactions. Which means Bursa Malaysia have responsibility to provided a very good service that minimize the mistake occurred, make everything clear enough and perfect. For example, transaction price, it may cause thousand of losses because of a mistake. In addition, Bursa Malaysia act as supervisor of the listed issuers and the brokers. Some unethical corporate may to speculate their corporate stocks. So Bursa Malaysia undertakes surveillance over the trading activities to prevent unusual problem happened. For instand, stock price raises in abnormal trend, then Bursa Malaysia will aware of it.