How DBR Affects You

In April 2001, the SC embarked on a study to assess market readiness for the implementation of this final phase of DBR. In the meantime, a host of flexibilities to facilitate the issue, offer and listing of securities were introduced in May 2001.

These flexibilities were introduced in part to support the move towards the implementation of DBR and were part of the overall objectives and recommendations of the Capital Market Masterplan of making the Malaysian capital market the preferred fund-raising centre for Malaysian companies. Further flexibilities for listing, funds raising and restructuring were also introduced in September 2001.

The market survey showed that market players are highly aware of and support DBR as a mode of regulation. The survey targeted all key market players, namely, public-listed companies, the institutional group (institutional investors, analysts, media) and advisers (merchant banks, legal advisers, accountants, valuers) and relevant regulatory authorities.

While market participants felt that there were some costs, such as higher compliance cost, in the implementation of DBR, they also perceived that there were significant benefits to be derived from a DBR environment. The market cited a faster approval process, greater access to funds, greater transparency, better corporate governance, higher quality of disclosure and greater investor protection as some of the benefits of DBR. In view of the market readiness, the final phase of DBR will begin in 2003.

 
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