Kuala Lumpur, 9 July 2022 – Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) has onboarded Malacca Securities Sdn Bhd (“Malacca Securities”) as the first Islamic Participating Organisation (“Islamic PO”) to offer Shariah Discretionary Trading (“Shariah DT”) service to its clients, effective 1 July 2022.
Malacca Securities’ offering comes following the issuance of a Shariah Pronouncement on Shariah DT by the Shariah Committee of Bursa Malaysia Islamic Services Sdn Bhd, which now permits Islamic POs to carry out Shariah DT for their clients based on Shariah principles.
The goal of Shariah DT is to enable the Islamic POs to provide investors with a tailored, structured and Shariah-compliant discretionary equity portfolio. It is a solution that will appeal particularly to retail clients who do not have the privilege of being able to monitor the equity market, but keen to remain invested in equities.
“The Exchange is continuously enhancing its infrastructure to provide wider and easier access for investors to participate in the equity market,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “With the addition of Shariah DT, the investing public will have more options available to them when investing in the equity market.”
“As one of the Exchange’s longest serving partners, we are pleased that Malacca Securities has taken the proactive step to becoming the first Islamic PO to offer Shariah DT,” added Datuk Umar. “We would like to encourage all our other POs to consider offering Shariah DT to their clients.”
“Malacca Securities is pleased to work with Bursa Malaysia to offer the first Islamic DT for retail investors in Malaysia,” said Lim Chia Wei, Managing Director of Malacca Securities. “With our experience in offering conventional DT services to our clients since 2016, we shall continue to do our best in executing trades on behalf of our DT clients. It is our firm belief that the best interests of our clients are paramount.”
“With this in mind, we endeavour to help our clients achieve the best returns possible using our tested and proven trading and execution strategies. This will relieve our clients of the
need to spend excessive time formulating trading decisions when dealing with the stock market,” added Chia Wei.
The framework for Shariah DT may be found in the Best Practices No. 7.16-001 under the Participating Organisations’ Directives and Guidance of Bursa Malaysia Securities Berhad on the Bursa Malaysia website at the following link:
https://www.bursamalaysia.com/sites/5d809dcf39fba22790cad230/assets/62834dc539fba 203588d5bd6/POs__Directives_and_Guidance__16May2022.pdf
Members of the public who want to learn more about Shariah DT may contact Malacca Securities at 03-2201 1631 or http://mplusonline.com/contact-us.
