KUALA LUMPUR, Jan 30 — Bursa Malaysia is ramping up its non-trading revenue (NTR) segment to its strengthen performance going forward.
Chief executive officer Datuk Muhamad Umar Swift said only 36 per cent of the bourse’s revenue came from its NTR segment, while more than 60 per cent from its trading sector.
He said Bursa Malaysia is building up a business model for its market data segment and is looking at introducing more value-added information services.
“We are the golden source of data in the market and we want to see how we can value add and provide solutions to the market,” he said at a briefing on Bursa Malaysia’s 2019 financial year results here, today.
He said the NTR segment would likely start contributing more to Bursa Malaysia’s revenue by 2021.
“We have products on derivatives that nobody tracked. We think it’s a great product. So, we have conversations with our participants, people in the market on what they want, what can we solve for them,” he added.
In FY2019, Bursa Malaysia’s operating revenue declined by 8.2 per cent to RM480.1 million from RM523.3 million the previous year.
The NTR revenue for the bourse was slightly down at RM139.4 million from RM143.7 million in FY2018, on lower listing and issuers fees and perusal processing fees.
However, the downtrend was mitigated by higher market data revenue of RM38.6 million from RM36.2 million previously.
Meanwhile, securities trading revenue depreciated to RM232.8 million from RM265.8 million due to geopolitical tensions and soft domestic corporate earnings.
Its derivatives trading revenue declined to RM72.3 million versus RM76.7 million in 2017, mainly on the lower number of contracts traded for US dollar-denominated refined, bleached and deodorised palm olein futures and FTSE Malaysia KLCI Futures, lower collateral management fees and guarantee fees.
Muhamad Umar said the bourse is allocating RM30 million for capital expenditure this year.
The allocation will be utilised for new and upgrading of Bursa Malaysia’s existing system.
As of now, 16 new initial public offerings (IPOs) are in the pipeline, he disclosed.
Three of them are for the Main Market, 11 for the ACE Market and five for the Leading Entrepreneur Accelerator Platform (LEAP) Market.
To date, Bursa Malaysia has seen the listing of three new IPOs, of which two are on the LEAP Market and the third on the ACE Market.
Bursa Malaysia is targeting 40 IPOs for listing on the bourse in 2020 from 30 last year. — Bernama
