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Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Company’s prior written permission. This Presentation is provided for information purposes only. Neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. It is your responsibility to verify any information before using or relying on it. BURSA MALAYSIA BERHAD CLSA Investors’ Forum, Hong Kong Dato’ Yusli Mohamed Yusoff, CEO 22 - 26 September 2008 Visit us at http://www.bursamalaysia.com
34

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Page 1: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Company’s prior written permission.

This Presentation is provided for information purposes only. Neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation.

It is your responsibility to verify any information before using or relying on it.

BURSA MALAYSIA BERHADCLSA Investors’

Forum, Hong Kong

Dato’

Yusli

Mohamed Yusoff, CEO22 -

26 September 2008

Visit us at http://www.bursamalaysia.com

Page 2: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

2

Clearing & Depository by :

Citibank & Deutsche

3 Markets:

Main Board : 637 cosSecond Board : 221 cosMESDAQ Market : 124 cos

9 Derivatives Products:

Commodity futuresEquity futures & optionsFinancial futures

Financial instruments:

Non-ringgit securitiesIslamic Sukuk crosslistings

Equities Market Derivatives Market Offshore Market

Trading

Clearing

Settlement

Depository

Trading

Clearing

Settlement

Listing

Clearing

Depository

Integration Across Products and Services

5 Bond Instruments:

M’sia Gov Securities*Gov Investment Issues*Central Bank PapersCagamas PapersPrivate Debt Securities

Order Matching*

Bond Market

(Trading)

Negotiation

Reporting

Single

Exchange

GroupTotal Market Capitalisation

: USD229 bn

(RM791 bn) @ 12 September 2008

Page 3: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

3

1 Executive Director

7 Independent Non-Executive Directors

5 Public Interest Directors (also independent)

13 Members @ 12/9/200813 Members @ 12/9/2008

Board

Of Directors

And

Shareholdings

Structure

Substantial Shareholders @ 29/8/2008Substantial Shareholders @ 29/8/2008

Minister of Finance Inc.

Capital Market Development Fund

Newton

19%

19%

9.5%

Foreign Shareholding : 23%Foreign Shareholding : 23%

Market Cap of Bursa @ 12/9/2008 :RM3.4 bn (USD1.0 bn)

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4

Operating

DriversImpacted By Continued Global Uncertainties And Local Market Sentiments

25,4

21

23,4

95

26,5

76

20,5

72

13,1

36159,019 161,544 125,051 121,775

115,569

0

5,000

10,000

15,000

20,000

25,000

30,000

1,01

1

1,02

6

2,45

4

1,91

2

1,53

2

35% 33%

61%45%

38%

0501001502002503003504004505005506006507007508008509009501000105011001150120012501300135014001450150015501600165017001750180018501900195020002050210021502200225023002350240024502500

Velocity (%)

Market Capitalisation

(RM tn)

Daily Average Trading VolumeOMT+DBT (bn)

Daily Average Trading ValueOMT+DBT (RM bn)

FY 2007

1H06 2H06 1H07 2H07 1H08

EQUITIES

24,635Daily Average Contracts 25,011

DERIVATIVES

(2)

%

(36)

(18)

(56)

(42)

53

Daily Average Contracts (units)Open Position

Daily Average Market Transacted Value –

OMT

(RM mn)Daily Average Market Transacted Volume –

OMT (mn

units)Turnover Velocity

%

1.1

1.6

2.4

YTD12 Sept 08

34

0.9

0.7

1.4

FY 2007

YTD12 Sept 08

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5

Key

Ratios

Annualised

Return on Equity

EBITDA Margin

Net Profit Margin

Stable Revenue + Derivatives Income:Total Operating Expenses

% %2H071H08 1H07

18.4

50.7

37.8

83.7

25.1

58.3

46.8

74.0

31.7

69.4

50.7

87.9

%

(42)

(30)

(25)

(5)

(27)

(13)

(19)

(13)

1H08 vs. 1H07 CommentaryThe ratios are lower mainly due to the lower revenue from the equity market

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6

Financial Results Overview

Commentary

• Decrease of revenue affected by continuing global & domestic uncertainties and inflationary pressures

1H071H08 2H07

164.1

83.1

90.3

96.3

25.6

70.7

13.5

239.2

165.9

80.2

186.0

50.8

135.2

26.0

204.0

118.9

92.2

133.0

27.6

105.5

20.1

%

(31)

(50)

13

(48)

(50)

(48)

(48)

(20)

(30)

(2)

(28)

(7)

(33)

(33)

Operating Revenue (mn)

EBITDA (mn)

Operating Expenses (mn)

Profit Before Tax (mn)

Taxation (mn)

Profit After Tax (mn)

Earnings per Share (sen)

RM %

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7

33%52%

13%

2%

19%69%

10%

2%

Operating Revenue1H08: RM 164.1 mn

(USD 50.2 mn)

1H07

Trading Revenue (Equities)

Trading Revenue (Derivatives)

Stable Revenue

Other Operating Revenue*

1H08

84.9

22.0

53.5

3.7

86.8

12.9

23.0

1.6

86.8

12.9

23.0

1.6

%2H07

164.5

23.7

46.8

4.2

132.0

21.0

47.2

3.8

(48)

(7)

14

(12)

(36)

5

13

(3)

%RM mn

* Other Operating Revenue = perusal and processing fees

•Equity market performed poorer due to the bearish market and revision of clearing fee•Lower derivatives trading revenue due to decline in number of derivatives contracts from 3.2mn in 1H07 to 3.1mn in 1H08•Stable revenue increased due to higher listing and information services fees•Lower Other Operating Revenue due to lower perusal & processing fees

1H08 vs. 1H07 Commentary

1H07: RM 239.2 mn

(USD 69.2 mn)

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8

Depository Services

Listing Fees

Information Services

Broker Services*

Participants’

Fees**

1H08

86.8

12.9

23.0

1.6

%

86.8

12.9

23.0

1.6

%2H071H0713.9

19.1

12.2

6.9

1.4

14.6

13.1

9.5

7.5

2.1

13.8

14.0

10.3

7.6

1.5

(5)

46

28

(8)

(33)

1

36

18

(9)

(7)

RM mn

* Broker Services comprises of Data Comm

equipment rental income from a fixed monthly rate** Participants’

Fees comprises of application/admission/initial/registration fees, participants’

subscriptions and renewal fees

Stable Revenue

23%

36%

26%

13%

2%

28%

31%

20%

5%

16%

1H08: RM 53.5 mn

(USD 16.4 mn) 1H07: RM 46.8 mn

(USD 13.5 mn)

1H08 vs. 1H07 Commentary•Higher listing fees due to full charge of listing fees in 2008 (50% rebate in 2007)•Higher information services fees due to revised fee structure in

October 2007•Lower broker services fees from reduction in number of terminals

at broker sites (Migration of old CDS system to web based system)•Lower depository fees due to lower transfer fee and additional issue fees (reduced corporate activities) •Lower participants’

fees due to the absence of MESDAQ advisors and sponsors applications in 1H08

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9

Staff Costs

Market Development

IT Maintenance

Building Management Costs

Depreciation & Amortisation

Other OPEX

86.8

12.9

23.0

1.6

86.8

12.9

23.0

1.6

%

2H0741.8

6.4

7.4

4.5

7.0

13.1

43.6

11.8

6.0

4.8

7.1

18.9

% %1H071H0843.1

7.5

7.6

4.7

9.3

18.1

3

17

3

4

33

38

(1)

(36)

27

(2)

31

(4)

RM mn

Operating Expenses

48%

20%

8%

9%

10%

5%

1H08: RM 90.3 mn

(USD 27.6 mn) 1H07: RM 80.2 mn

(USD 23.2 mn)

8%

9%

6%

9%

16%

52%`

* Other OPEX = professional fees, administrative expenses, CDS consumables, etc.

1H08 vs. 1H07 Commentary•Increase in staff costs due to higher ESOS allocations, increase

in headcounts & annual salary increments•Higher depreciation due to newly acquired system upgrade, renovation & FMTP launch•Higher other OPEX is mainly due to higher professional fees paid

and bond impairment resulting from a weak bond market

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10

Financial Resources Available for Use *

Shareholders’

Fund

Capital Expenditure

@ 30 June 2008

423

760

12

RM mn

Capital Management

130

233

4

USD $ mn

* Inclusive of RM64mn interim dividend paid in August 2008

Page 11: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

11

Total Shareholders’

Return since listing till 12 Sept 2008 185%

% of dividend payout excluding special dividend & capital repayment

Dividend Payout > 90%

91%

91%

92%

FY05 FY06 FY07

81

1010

Interim Gross Dividend/Share

Final Gross Dividend/Share

Special Dividend

Capital Repayment

Historical Dividend Payout in sen

28

1412.5

28

25

32

1H0816.5

91%

Delivers Value To Shareholders

Page 12: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

12

Velocity

Annual growth in derivatives contracts traded

56% 38%

Target 1H08

50% 0%

i

Bursa’s KPI 2008Challenged By Global And Domestic Climate

Targets

Initiatives:

USD Crude Palm Oil Futures

Continued Retail Education

DMA DerivativesBursa Trade Securities

Improvement of Infrastructure

Introduction of New Products

Other Initiatives

Page 13: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

13

In The Pipeline…Initiatives To Enhance Market Attractiveness

DMA EquityCommodity Murabahah HouseAsean trading linkagesMulticurrency platformIslamic Securities Borrowing & LendingNegotiated Large Trades - Derivatives

Improvement of Infrastructure

Multicurrency ETFs

Thematic ETFs

Introduction of New Product

Commodity Futures Trading Commission’s ApprovalUnification of BoardsMarket Making

Other Initiative

Page 14: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

14

EQUITIES MARKET

Challenging months ahead Investors’ sentiment expected to be impacted by slowing US and global economy, rising crude oil, commodities & food prices and domestic uncertaintiesGood opportunity for bargain huntingA shift to Islamic based investment products

DERIVATIVES MARKET

Expect continued interest in FCPO and FKLI FKLI: Interest to move in tandem with the expectations in the equity marketFCPO: Interest guided by expectations of supply and demand of CPO, priceof substitute products and environmental issues.

Outlook

BOND MARKET

No significant income expected due to availability of alternative OTC trading

Page 15: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

15

ADDITIONAL INFORMATION

Page 16: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

16

0.0291 0.0283 0.02950.0272

0.0226 0.0231

Q107 Q207 Q307 Q407 Q108 Q208

Note :

Clearing Fee revised to 0.03% (capped at RM1,000) effective 1 Jan 08 from 0.04% (capped at RM500)

% of retail trading participation by value

Effective Clearing Fee RateAffected By Institutional Bunching Of Trades And Lower Retail Participation

39% 35% 40% 33% 25% 24%

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17

Market Valuation & Listed Companies

375

553

444 465 482

640722 695

849

945

1106 982

736 758798 816

865906

9631021

1027

987

Mar

ket V

alua

tion

(RM

b) Num

ber of Com

paniesMarket Valuation Total Listed Companies

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 YTD 12 Sept 08

ShariahCompliant

Non- ShariahCompliant

85% or 66% in terms of market cap

840 Shariah Compliant Companies ; 85% (Mkt Cap USD155 bn) Source : ISBU

97%

1%1%

Main BoardSecond BoardMesdaqCall Warrants

Market Capitalisation USD229 bn (RM791 bn)

1%

97%

Main BoardSecond BoardMesdaqCall Warrants

No. of Counters Listed 1,283

804280

13663

Our Market Remains Competitive18 New Listings @ 12 September 2008

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18

236%

206%

174%

150%

149%

141%

132%

116%

112%

89%

74%

69%

68%

65%

47%

40%

24%

Shenzen SE

NYSE

Korea Exchange

Taiw an SE Corp.

London SE

Tokyo SE

Euronext

Shanghai SE

Australian SE

Hong Kong Exchanges

National Stock Exchange India

Indonesia SE

The Stock Exchange of Thailand

Singapore Exchanges

New Zealand Exchange

Bursa Malaysia

Philliphine SE

Source: World Federation Exchanges (WFE)

Bursa’s Sustainable Velocity Target : 60% By 2010Turnover Velocity For The Past 12 Months To August 2008

40%

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19

5%6%

25%

8%3%9%

42%

2%

5%

13%

4%

31%

1%4%

9%

10%

21%

2%Number of Listed Companies Market Capitalisation of KLCI Components

Industrial

TechnologyInfrastructure

Trading/Services

Construction

Others

Consumer Finance

PropertyPlantation

Diversity

Provides

ResilienceAs at 29 August 2008

Page 20: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/CLSAInvestorForum_HK_22...Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents

20

Velocity

1372

797497

805 911

350 472748

2,179

1,438

874718

1019

19242057 53%

34%34%

25%32%34%

57%

33%

58%

23%20%

39%40%

57%

31%

0501001502002503003504004505005506006507007508008509009501000105011001150120012501300135014001450150015501600165017001750180018501900195020002050210021502200225023002350240024502500

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070%

10%

20%

30%

40%

50%

60%

70%

Daily Average Market Transacted Volume (million units)Daily Average Market Transacted Value (million RM)Turnover Velocity

12 Sept 08

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21

910

2610

23032069

17511907

1186

909

1283

7821107

24%

31%

46%41%

50%54%

68%

39%

30% 27%

38%

-302070120170220270320370420470520570620670720770820870920970102010701120117012201270132013701420147015201570162016701720177018201870192019702020207021202170222022702320237024202470252025702620

Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q2080%

10%

20%

30%

40%

50%

60%

70%

80%

Daily Average Market Transacted Volume (million units)Daily Average Market Transacted Value (million RM)Turnover Velocity

July -12 Sept 08

Quarterly Velocity

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22

Offers

The

Highest

Dividend

Yield

Selected Regional Markets - Dividend Yield

2.00%

2.93%

4.58%

4.62%

5.02%

5.08%

4.10%

1.54%

1.92%

4.65%

China (SHASHR)

Indonesia (JCI)

South Korea (Kospi)

Hong Kong (HSI)

Singapore (FSSTI)

Philippines (PCOMP)

Australia (AS30)

Thailand (SET)

Taiwan (TWSE)

Malaysia (KLCI)

Source: Bloomberg –

Dividend yield for main regional indices as at 29th

August 2008

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23

Attractive

Market

P/E

Valuation

12.813.9

10.0

12.511.7 11.6 10.9 10.2

13.8 13.4 12.6 12.3 11.710.8

9.8

13.8

Hong Kong Indonesia Singapore Philippines Taiwan Malaysia South Korea Thailand

P/E Forward P/E

Source: Bloomberg - P/E Valuation for main regional indices as at 29th August 2008

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24

Breakdown of trading (by value) 1993 to August 2008

Sustained Foreign Trading Reflects Market

Resilience

85%

82%

69% 81

%

76%

73% 83

%

78%

71%

68% 76

%

69%

63%

65%

63%

58%

15%

18%

31% 19

%

24%

27% 17

%

22%

32% 24%

31%

37%

35%

37%

42%29

%

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

YTD Augu

st 0

8

Local Investors Foreign Investors

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25

42%

45%

44% 54

%

44%

49% 59

%

54%

43%

40% 50

%

43%

29%

34%

37%

23%

51%

48%

45% 36

%

42% 43

% 35%

40%

51%

54% 45

%

53%

71%

66%

63%

77%

3%5%6%6% 6%6%7% 7% 11%

10%

14%

8%

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

YTD Augu

st 08

Retail Institutions Others

Breakdown of trading (by value) 1993 to August 2008

Retail Participation

“Others”-

refers to trades conducted for accounts not belonging to individuals/ institutions. Definitions of investors’

type clarified in 2004, hence reducing the type of investor falling under “others”

category.

Drop In Retail Volume Due To Weak Investors’ Sentiment

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26

Malaysian and Foreign Shareholdings as at 31 August 2008

Note : Foreign Nominees reflect shares owned by foreigners but held via Authorised

Nominee Companies incorporated in Malaysia.

ItemsAugust 2008

Total Shareholdings (Units-Bn) % Total Market Value (RM-Bn) %

1 ForeignersDirect Holdings 17.0 4.11 39.3 4.72

Foreign Nominees* 55.9 13.32 157.4 18.91

2 Malaysians 341.0 82.57 635.5 76.37

3 Total securities immobilised in CDS 413.0 100.00 832.2 100.00

Foreign

Ownership

At 23.6%

Foreign Shareholdings by Nationality for Selected Countries as at 31 August 2008

Foreign Nominees76.39%

Hong Kong1.39%United

Kingdom1.25%

Singapore8.05% Others

12. 36%

Mid-East0.14%

United States of Americas

0.42%

Foreign Ownership from Jan 07 – July 08

25.0

%

27.5

%

26.9

%

26.6

%

26.5

%

25.7

%

24.6

%

23.0%

23.5%

24.0%

24.5%

25.0%

25.5%

26.0%

26.5%

27.0%

27.5%

28.0%

Jan-0

7

Apr-07

Jul-0

7

Oct-07

Jan-0

8

Apr-08

Jul-0

8

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27

20,9

46

22,8

4130,2

83

22,1

51

24,7

97

27,0

99

26,0

35

22,1

13

19,1

04

14,5

00

11,7

03

159,019 158,737 161,544

145,107

125,051131,795

121,775

162,638

115,569

96,002

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q2080

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Daily Average Derivatives Contracts Open Position

138,648

July - 12 Sept 08

Quarterly Derivatives Activity

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28

KL Composite Index Futures (FKLI)

3-Month Kuala Lumpur Interbank Offered Rate Futures (FKB3)

Crude Palm Oil Futures (FCPO)

2 Leading

Derivatives

Products,

FKLI

& FCPO

Total contracts traded 1H 2008 = 3.1 mnTotal contracts traded 1H 2007 = 3.2 mn -5%

50%46%

4%

50%46%

4%

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Derivatives

Market

Demography FKLI

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.

KLCI Futures

31%19% 14% 16% 16% 13% 15% 16%

45%48%

45% 43% 40% 40% 41% 42%

6%5% 3% 3% 2% 1%

14% 23% 31% 37% 40% 45% 42%3%

2%

41%

2001 2002 2003 2004 2005 2006 2007 YTD Aug 08

Locals Domestic Retail Domestic Institutions Foreign Institutions

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* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.

Derivatives

Market

Demography

FCPO

Locals Domestic Retail Domestic Institutions Foreign Institutions

Crude Palm Oil Futures

40% 38% 35% 33% 35% 31% 25% 27%

15% 21% 26% 24% 23% 27% 34% 37%

27% 21% 18% 20% 22% 25% 22% 14%

14% 14% 17% 20% 18% 16% 18% 21%

2001 2002 2003 2004 2005 2006 2007 YTD Aug 08

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31

Bursa’s

Strong

Niche

In Islamic

Capital Market

Expertise

Brand

Infrastructure

• Islamic finance experts within Bursa Malaysia• Access to Shariah Advisory Council (SAC)

– Close collaboration with SC on Islamic Capital Market transaction and activities• Islamic Financial Services Board (IFSB), international standard-setting organisation for

the Islamic financial services industry• International Centre for Education in Islamic Finance established to develop the global

Islamic finance industry’s human capital• Involvement of leading Islamic finance academics and industry experts as advisors to

capital markets players

• Leading centre in Islamic banking– 11 standalone Islamic Banks (3 are foreign)

• Pioneer in Islamic finance• Islamic friendly

– Highly regarded by Islamic investors, with Middle Eastern liquidity favoring Malaysia over other developed markets

• Most established Shariah-compliant legal and regulatory framework• Tax exemptions for Islamic intermediaries

– Asset managers, banking products and Takaful companies• LFX as an offshore platform with significant Islamic finance activity

– Significant Sukuk activity– Potential offshore listing destination for Islamic finance products, with access to a

broad pool of investors

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32

Dubai Gold & Commodities Exchange Development of derivatives markets

Multi Commodity Exchange of India Limited Development of commodities market and for cross listing of products

Dalian Commodities Exchange Joint organizing of “China International Oil and Oilseeds Conference”.

Australian Securities Exchange Facilitating communication channels and fostering relations

Singapore Exchange Derivatives Trading Limited Exploring future business relationship opportunities

NYSE Euronext

Technology Solutions Provider for equities, derivatives & DMA platform: Through NYX Advanced Trading Solutions

Global

Network

Korea Exchange Development of Financial Market Trading Platform

for the bond market in Bursa Malaysia

The Agricultural Futures Exchange of Thailand Development of commodities and futures markets

Ho Chi Minh City & Hanoi Securities Trading Centre Facilitating communication channels and fostering relations

Tokyo Stock Exchange Providing mutual cooperation on personnel training & information exchange

PT. Bursa Berjangka

Jakarta Development of futures and commodities markets

Hong Kong Exchanges & Clearing Sharing market surveillance information

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33

Liberalisation

Efforts

– No

Capital Control

Accelerate tax restructuring: Reits

(10% local & foreign)

: Corporate tax (25% -

2009, 26% -

2008)

Liberalisation

of Foreign Listing & Dual Listing

No Capital Gains TaxNo Property Gains Tax

Re-introduction of regulated short selling (RSS) and stock borrowing & lending (SBL)

Admission of 5 foreign fund managers (Aberdeen, Nomura, BNP Paribas, Credit Agricole, Franklin Templeton Investments)

Admission of 5 foreign brokers (UBS, CLSA, CSFB, Macquarie, JP Morgan)

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34

Sound Macro

Environment

CONDUCIVE DOMESTIC INTEREST RATESOvernight policy rate: 3.5%

REAL GROWTHProjected 4.5-5%

HIGHER INFLATION Now at 7-8%Annual CPI forecasted: 5%

NINTH MALAYSIAN PLAN UNDERWAYNew emphasis on key economic developments

STRENGTHENING RINGGITAppreciation of up to 15.8% since 2005

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