International Monetary FundWorld Bank2014-01-302014-01-302013-01https://hdl.handle.net/10986/16713This paper pertains to the bond market development in Malaysia, and provides an overview of the market scenario in the country. Malaysia has been successful in developing the capital markets, particularly bond markets, in the recent past. Now, it faces the challenge of how to improve broader access and efficiency of the bond market. A high degree of investor concentration, dominated by government pension funds, plays a significant role in impeding the growth of higher-yield bond market. The role of the government in stimulating the growth of the bond markets should be now shifted toward encouraging more diversity. In order to promote risk diversity, significant measures should be taken to increase competition on the demand side. Another important challenge for the bond markets going forward is improving transparency to make them more attractive to a broader constituency. To improve liquidity and transparency, the authorities should encourage the establishment of open, independent electronic platforms that integrate price search, negotiation, and trading of bonds. It is felt that while Malaysia has seen success in the bond markets, there is scope for further improvement.en-USCC BY 3.0 IGOACCESS TO CAPITALACCESS TO INFORMATIONASSET BASEASSET CLASSASSET CLASSESASSET MANAGEMENTASSET MANAGERSBACKED SECURITIESBALANCE SHEETBALANCE SHEETSBANK BRANCHESBANKING INSTITUTIONBANKING SECTORBANKING SYSTEMBIDBONDBOND FUNDSBOND INSTRUMENTSBOND INVESTMENTSBOND ISSUANCEBOND ISSUESBOND MARKETBOND MARKET ACCESSBOND MARKET DEVELOPMENTBOND MARKETSBOND PRICEBOND TRADINGBOND YIELDBRANCH NETWORKSBROKERBROKERSCAPITAL MARKETCAPITAL MARKETSCASH FLOWSCOLLATERALCONTINGENT LIABILITIESCORPORATE BONDCORPORATE BOND MARKETCORPORATE BONDSCORPORATE DEFAULTCORPORATE GOVERNANCECOUPONCREDIT GUARANTEECREDIT LINECREDIT RATINGCREDIT RATING AGENCIESCREDIT RISKCREDIT RISKSDEBT INSTRUMENTSDEBT ISSUERDEBT MARKETDEBT SECURITIESDEBT SECURITIES MARKETDEBTORSDEFAULT RATEDEFAULTSDEPOSITORY INSTITUTIONDEPOSITORY INSTITUTIONSDEPOSITORY SYSTEMSDEPOSITSDEVELOPMENT BANKDEVELOPMENT OF DOMESTIC BONDDOMESTIC BANKSDOMESTIC CREDITDOMESTIC CREDIT RATINGEMERGING MARKETEMERGING MARKETSEQUITIESEQUITY FUNDSEQUITY INSTRUMENTSEQUITY INVESTMENTSEQUITY MARKETEQUITY MARKETSEXTERNAL CREDIT RATINGSFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL MARKETFINANCIAL SECTOR INTERMEDIARIESFIXED INCOMEFIXED INCOME INVESTMENTSFIXED INCOME MARKETFIXED INCOME MARKETSFIXED INCOME PORTFOLIOSFOREIGN EXCHANGEFOREIGN INVESTORFOREIGN INVESTORSFUND MANAGEMENTFUND MANAGERSFUTURE CASH FLOWSGOVERNANCE STANDARDSGOVERNMENT BONDGOVERNMENT BOND MARKETGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT DEBT SECURITIESGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSGOVERNMENT SECURITIESHIGH-YIELD DEBTHOLDINGSHOUSING FINANCEILLIQUID SECURITIESIMPLICIT GOVERNMENT GUARANTEESINCOME INSTRUMENTSINDIVIDUAL INVESTORSINFRASTRUCTURE DEVELOPMENTINSTITUTIONAL INVESTORINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINSURANCE INDUSTRYINSURANCE PRODUCTSINTERNATIONAL BANKINVESTINGINVESTMENT DECISIONSINVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITYINVESTMENT PORTFOLIOINVESTMENTS IN EQUITIESINVESTOR BASEINVESTOR INTERESTISLAMIC BONDISLAMIC CAPITALISLAMIC CAPITAL MARKETISLAMIC FINANCEISLAMIC FINANCIAL INSTITUTIONSISSUANCEISSUANCE OF BONDSISSUANCESLEVEL PLAYING FIELDLIABILITYLIFE INSURANCELIQUIDITYLIQUIDITY PROBLEMSLOCAL CURRENCYLONG-TERM INVESTMENTMARKET CAPITALIZATIONMARKET EFFICIENCYMARKET INFRASTRUCTUREMARKET INTERMEDIARIESMARKET LIQUIDITYMARKET MAKERMARKET MAKERSMARKET PARTICIPANTSMARKET RISKMARKET SHAREMARKET STRUCTUREMARKET SUPERVISIONMARKET TRANSPARENCYMATURITYMONETARY FUNDMONEY MARKETMONEY MARKET INSTRUMENTSMONEY-MARKETMORTGAGE LOANSMUTUAL FUNDMUTUAL FUND INDUSTRYMUTUAL FUND MANAGERSMUTUAL FUNDSOWNERSHIP STRUCTUREPARTIAL GUARANTEEPENSIONPENSION FUNDPENSION FUNDSPENSIONSPORTFOLIOPORTFOLIO HOLDINGPRICE DISCOVERYPRIMARY MARKETPRINCIPAL ASSETPRIVATE CREDITPRIVATE DEBTPRIVATE DEBT MARKETPRIVATE EQUITIESPRIVATE PLACEMENTPROPERTY INVESTMENTSPUBLIC BANKPUBLIC DEBTPUBLIC DEBT SECURITIESREGULATORY FRAMEWORKRESERVESRESIDENTIAL MORTGAGERETAIL INVESTORRETAIL INVESTORSRETURNRETURNSRISK AVERSIONRISK MANAGEMENTRISK OF DEFAULTRISK PROFILERISK PROFILESSAVINGS RATESECONDARY MARKETSECONDARY MARKETSSECURITIES INDUSTRYSECURITIES ISSUANCESETTLEMENTSETTLEMENT SYSTEMSOVEREIGN RISKSUBORDINATED BONDSSUKUKT-BILLSTAXTAX DEDUCTIONSTAX EXEMPTIONTAX INCENTIVETAX INCENTIVESTAX TREATMENTTELECOMMUNICATIONSTRADINGTRADING VENUETRANCHESTRANSPARENCYTREASURIESTREASURYTRUST FUNDTRUST FUNDSTYPE OF INVESTORSVALUATIONWITHDRAWALWorld Bank10.1596/16713