KUALA LUMPUR, Jan 28 — Bursa Malaysia Bhd expects its average daily trading value (ADV) to continue to normalise in the financial year ending Dec 31, 2022 (FY22), said chief executive officer Datuk Muhamad Umar Swift.

He said Bursa Malaysia’s ADV would be driven by several factors including market confidence, products and the expectations of economic growth this year.

“2020 was the year of the glove sector and stocks driven by the pandemic, which then eased off in 2021. There was a fall in ADV, clearly ADV also relies on economic activities and expectations of growth,” he told reporters after announcing Bursa Malaysia’s financial performance for the year ended Dec 31, 2021 (FY2021) held virtually today.

For FY2021, Bursa Malaysia’s securities market registered a trading revenue of RM442.9 million compared with RM498.9 million in FY2020, a decrease of 11.2 per cent due to lower ADV for on-market transactions and direct business transactions.

On Cukai Makmur (Prosperity Tax), Muhamad Umar said it would not have a major impact on the market.

“When we look at Cukai Makmur, it is an additional tax for companies with earnings of more than RM100 million in Malaysia. It does not impact dividend income (and) offshore earnings. It is a special one-off tax.

“Of course when investing, investors are looking for growth and dividend. So there will be some awareness and some impact from Cukai Makmur. That being said, it is a one-off tax and therefore everything will normalise,” he added.

In his closing remarks earlier, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said the exchange operator is working with the Environment and Water Ministry, Finance Ministry and various industry experts to establish a Voluntary Carbon Market.

He noted that an industry working group would be formalised to provide insights on implementation strategies that are vital for the creation of a sustainable voluntary carbon market ecosystem.

“In line with Malaysia’s goal to become a net-zero greenhouse gas emission nation as early as 2050, we will increase efforts in advocating ESG (Environmental, Social and Governance) practices and climate action initiatives in 2022, as well as in building a vibrant and sustainable marketplace,” he added.

Last September, Bursa Malaysia pledged to achieve carbon neutrality by 2022 and net zero emissions by 2050 across its entire operations. — Bernama