ABSTRACT
Trading in equities long preceded any trading in bonds in Malaysia. The buying and selling of shares in Malaysia occurred as early as 1870, and the first Malayan stockbrokers association was founded in 1927. The main underwriters of debt securities are the commercial banks, discount houses, and merchant banks. The Malaysian bond market consists of both government and private debt securities, but the government component in terms of the amount of bonds outstanding is currently much larger than the private. Malaysia has at least six main regulatory authorities that control various aspects relating to the market for bonds and other debt securities. These are the relatively new Securities Commission, the Bank Negara Malaysia, the Kuala Lumpur Stock Exchange, the Registrar of Companies, the Foreign Investment Committee, and the Licensing Officer for Securities and Futures Trading in the ministry of finance.
