| James Kon |
THE establishment of Brunei’s very own stock exchange will support the country’s diversification efforts away from oil and gas to a more mature capital market in Southeast Asia, a top banker said.
With Asean integration in the pipeline, the initiative will provide companies with an alternative funding source as well as deeper liquidity pools to finance business expansion, Lim Yu Kwang, Country Head and General Manager of Brunei Operations of Maybank Brunei, said in a press conference held at the bank’s headquarters in Kiarong yesterday.
According to reports, Brunei aims to establish a stock exchange by 2017.
“Bruneians will also benefit from the new stock exchange as it will give them wider investment options,” Lim said, adding that “there will not be immediate success as it will take time for a capital market to fully blossom”.
Lim also cited a number of challenges in establishing a stock exchange. “To name a few, there would be the issues on differences in corporate governance standards, tax regime and exchange control restrictions between countries within Asean, especially on Asean Economic Community (AEC).”
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Lim Yu Kwang, the Country Head and General Manager of Brunei Operations of Maybank Brunei. – JAMES KON
Nevertheless, he said “The establishment of our own bourse in the country will strengthen the domestic economy in the long run.”
Touching on the current economic situation, Lim said, “Maybank strongly believes that every crisis comes with opportunities.
“Although the economic outlook may not look rosy, there are certainly plenty of rooms for the bank to grow. We will be working to raise our visibility in other districts where we have not placed much focus in the past, and also our customer service standards.”
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