SC chairman Awang Adek Hussin attributed this to the greater mobilisation of savings through the capital market. He said it was also a period of rising asset prices, supported by easier monetary and financial conditions.

He said the SC introduced several measures to facilitate greater efficiency in fund management earlier this year as well as the liberalisation of exchange-traded funds and private retirement schemes last month.

“With these changes, a retail fund is now permitted to have some exposure to digital assets, investment accounts, and investment notes.

“This will enable individual investors to gain exposure to alternative assets,” he said in his keynote address at the Virtual FIMM Annual Convention and Industry Education Series today.

Awang Adek said the SC also intends to extend these measures to the wholesale fund market as well.

However, despite the strong growth of the capital market, Awang Adek warned that the unprecedented Covid-19 pandemic over the last two years proved that the status quo can shift rapidly.

“Rising global interest rates have tightened market liquidity and heightened volatility, resulting in a negative impact on net asset values,” he said.

“As the outlook ahead remains challenging, it is necessary to reset focus and expectations to ensure continued industry relevance and resilience.”

He added that it was crucial for fund intermediaries to continue to ensure sufficient processes and safeguards were in place to manage risks from newly emerging assets.

Awang Adek then urged market intermediaries to continue to act in the best interest of their investors, adding that the SC will not hesitate to pursue enforcement actions for misconduct.