A key agenda over the past decade has been to ensure that the post-crisis economic recovery transitions smoothly to economic resilience. While the global financial crisis of 2007-08 may well be behind us and the bulk of global financial reform that emanated from the crisis has helped strengthen the structural resilience of markets, the global financial system still requires further enhancement. In order to ensure financial markets allocate investments needed to achieve outcomes that are inclusive and sustainable, this requires more than just fixing the fault lines that led to the last crisis.
The definition of growth has changed. The once narrow and conventional meaning of growth is less relevant; rather today’s growth encompasses other intangible aspects such as quality of life and societal wellbeing. There are increasing concerns that globalisation has brought about growth that has been unevenly spread across the income spectrum and wealth distribution has become overly skewed, benefitting primarily small but influential segments of the economy. The economy is not serving the needs of a large section of the world’s population with growth accumulating upwards. For instance, today we live in a world where the richest 1% is said to own more wealth than the rest of the world population . This can be partly attributed to the myopic short-term view often adopted at the expense of long-term interests.
Over the next 15 years, the global population is expected to grow by just over a billion , exacerbating pressure on natural resources. Overall, it is estimated investments between US$5 and US$7 trillion a year are needed for infrastructure, clean energy, water, sanitation, agriculture and other sustainable development needs . Climate change is expected to further aggravate the issue and impose additional pressures, particularly in developing countries where the cost of adapting to climate change is between US$140 and US$300 billion per year by 2030.
Finance is inextricably linked to the people’s lives, fulfilling its role to the extent that individuals are able to achieve their objectives through the creation of jobs, transference of skills and knowledge, and accumulation of wealth. A financial system that meets the needs of different stakeholders across various segments of society is therefore imperative. Finance must have the ability to provide inclusive access to opportunities that transcend both geographical and socio-economic boundaries. It should also be sustainable across generations and provide for people’s futures, including the needs of the aging population.
Global capital markets have the ability to support the sustainable development of economies. Particularly in Asia, the role of long-term and sustainable capital markets in mobilising capital is becoming an urgent requirement as the region’s infrastructure needs grow rapidly on the back of industrial development and urbanisation.
A fundamental shift in the way finance operates is therefore needed. Business as Usual is no longer tenable, and renewed action is required to ensure that finance works for the real world. It also requires a re-examination of finance – its current dynamics and structure, particularly given the growing wave of financial technology which is disrupting how decisions are made and how businesses are managed.
The World Capital Markets Symposium 2018 will consider the future of finance and ways it can produce sustainable outcomes for the present and future generation. It will discuss the re-orientation of financial markets, including how innovation and technology can be leveraged to create greater efficiencies and facilitate steady, sustainable and inclusive growth.
As external conditions evolve, good governance becomes all the more critical in enabling organisations to manage and sustain growth. The Symposium will discuss ways to achieve a balance between meeting short-term imperatives while focusing on long-term optimisation and value creation.
In our commitment to achieve greater societal wellbeing, the Symposium will discuss the importance of various segments of society, including the role of women in leadership. On the domestic front, aligned with the Malaysian government’s roadmap to being a Top 20 Nation and in the spirit of Transformasi Nasional 2050 (TN50), we will also review development challenges and issues facing youth today including youth empowerment.
The resilience and integrity of the global economy is dependent on productive innovation and sustainable markets. For this to happen, we need to re-focus markets and businesses to foster longer-term behaviour and inclusive growth models.
The Securities Commission Malaysia is host to the biennial World Capital Markets Symposium or WCMS; a platform that promotes informed debate by global opinion leaders, policy makers, influencers, domain experts and market leaders on the big questions confronting us today – creating value, promoting sustainable, inclusive growth, jobs and societies in transition.
Since its debut in 2009, the Symposium has attracted over 1,000 delegates from more than 30 countries. It is a flagship event in the region. WCMS has hosted some of the world’s most prominent thought leaders including Dr Raghuram Rajanand Haruhiko Kuroda; Nobel Laureates Paul Krugman and Nouriel Roubini; prominent economists Dr Laura Tyson, Dr Mark Mobius and Dr Montek Singh Ahluwalia; entrepreneurs Jimmy Wales and Timothy Draper.
In 2013 Fareed Zakaria, Lord Adair Turner, and The Honourable Sheila C Bair were speakers. The fourth instalment of WCMS held in 2015 had Lord Paddy Ashdown, Narayana Murthy and Dr Marc Faber.
The upcoming WCMS to be held 6-7 February 2018 will feature global thought leaders and market experts including Helen Clark, former Prime Minister of New Zealand; Yanis Varoufakis, former Finance Minister of Greece; Jin Liqun President and Chairman of the Asian Infrastructure Investment Bank, Sir David Tweedie, Chairman of the International Valuation Standards Council; Douglas Flint, former Group Chairman, HSBC; and Fareed Zakaria, host of CNN’s Global Public Square.
Capital Markets Malaysia (CM²) is a brand of the Capital Markets Promotion Council which was established in 2013 as part of efforts by the Malaysian Government and the Securities Commission Malaysia (SC) to promote the country’s value proposition across various segments of the capital market globally. SC officially launched the CM² brand in 2014 to spearhead both local and international positioning and profiling of the Malaysian capital market, representing the multi-faceted market with its wide range of conventional and Islamic products, supported by a strong governance infrastructure. CMM ensures consistency and coordination among various stakeholders of the capital market in promoting the offerings and expertise of the market through different communication channels. CMM effectively profiles the competitiveness and attractiveness of the various segments of the capital market via a comprehensive and integrated approach to increase international participation and enhance opportunities for Malaysian capital market intermediaries. An integrated international agenda facilitates the promotion of the Malaysian capital marketplace, bringing together investors and investment opportunities.