00:00In the AI space, some say perhaps we have seen peak AI and those CapEx pretty much unsustainable.
00:07What's your take on it?
00:08Thank you, Aslinda.
00:09I think firstly, our index has actually grown, has actually risen by about 27%, as you mentioned earlier.
00:16And that's at the back of very strong demand of requirements for semiconductors, for back-end testing,
00:27for assembly, packaging, and I think that has actually helped and supported a lot of our companies in Malaysia.
00:35And at the back of that, we remain confident, though there's been some adjustments in the markets in terms of
00:42price valuations.
00:43I mean, it has been a tremendous super cycle in terms of valuations, especially in the North Asian markets of
00:51Korea and Taiwan.
00:51But at the end of the day, the demand for semiconductors, the demand for tech to support the growth in
01:01data centers,
01:02to support the growth in the need for chips, to support AI, that will continue.
01:08And Malaysia, we're very well positioned to support that.
01:10Well positioned, but not enough, right?
01:12Because when you take a look at the tech contribution, AI play, it's only about 4% of the weightage.
01:19I mean, how do you capitalize further?
01:21Yeah, so that's precisely why there's a lot of opportunity for us to push.
01:25The tech index certainly is one space that we want to be able to focus on.
01:29We want to have more companies in Malaysia to be able to tap, especially companies in the technology space,
01:39to be able to tap the capital markets.
01:41And today, we've had companies who have grown the likes of Vitrox, the likes of Franken, the likes of Inari,
01:54etc.,
01:54which have grown over time to become large billion-dollar companies today.
02:00And we want to be able to help more companies to come into the capital markets.
02:05We had Skychip listing recently, and amazing, the retail oversubscription was 95 times.
02:13The institutional book was 39 times.
02:16And that clearly shows very strong demand amongst investors to look at the tech space.
02:22And there is a lot of opportunity for us to be able to push that.
02:24It's not just about the numbers.
02:25You're talking about IPOs, right?
02:27It's not about the number of IPOs, but quality, higher quality IPOs and bigger IPOs.
02:32Where are you with that?
02:33When will we see the next Sunway?
02:35That's precisely what we're focusing on, size and scale.
02:39As part of our alignment to the capital market, Master Plan 26 to 30,
02:45we want to be able to drive vibrancy in the market.
02:48Where are you with that?
02:49Take 26, 27.
02:51How many big quality IPOs are we expecting?
02:55First of all, as an exchange, we cut across all sectors.
02:58But definitely, we want to be able to drive on the tech side.
03:00And we are looking at scaling up companies.
03:04The focus today, it's not about number of IPOs.
03:06I agree entirely.
03:08The focus today has to be on size.
03:10The focus today is to have the right type of companies on the market.
03:14And I think today, we are working together with various stakeholders
03:17to be able to push and drive the technology space.
03:21So how big will these IPOs be?
03:23Okay.
03:23So I guess to give some number, for example, Skychip,
03:30we saw it's about a billion US dollars coming out in market capitalization.
03:35We want to see more of that coming through.
03:37And of course, over time, as our companies grow,
03:41we saw companies like Vitrox.
03:43They started off at about 55 million ringgit market cap
03:48to where they are today at 11.5 billion market cap.
03:52Well, I mean, given the optimism,
03:54give us a sense of the pipeline for 26 and 27.
03:58Pipeline continues to be strong.
04:00So year to date, we have seen 29 IPOs.
04:04And out of the 29 IPOs, from a market cap perspective, size perspective,
04:09we have actually hit almost where we were for the whole year in 2025.
04:14So we feel that there will be continued traction in various areas and sectors.
04:21So for the rest of the year and 2027?
04:222027, we'll continue to see that.
04:25Because the pipeline today will probably cross into next year.
04:31The issue right now is also attracting foreign investors.
04:35So far, there's been an outflow when it comes to foreign funds.
04:40What will it take to reverse that?
04:42So I guess for us, it's about getting the right sectors in place,
04:46getting the right scale and size.
04:49But today, we also have to be mindful that there's a lot of passive funds out there.
04:54$17 trillion of passive funds, for example, track the MSCI.
05:00And for us, it's important that we build that scale.
05:03And for us to build that scale,
05:05we will need to be able to find larger companies to come on board.
05:10We need to nurture those larger companies
05:12and working with various stakeholders to make sure that we have the size.
05:16And tech is one space of it.
05:18But the other space that we want to be able to push
05:20is to make sure our companies also grow.
05:22Hence, together with the Securities Commission,
05:25we have launched the My Value Up program.
05:28And the My Value Up program is about four things.
05:30Number one, to be able to achieve long-term value creation,
05:34to get companies to be able to articulate long-term value creation,
05:37to be able to have very clear performance targets and metrics
05:43that investors can track.
05:45And to be able to ensure that companies know how they're allocating capital
05:50and companies are able to articulate that clearly and board accountability.
05:54A program is in place.
05:56What about the traction?
05:57I mean, how many countries have signed up?
06:00And what meaningful impact has there been?
06:02Okay, so we've just launched the program in April.
06:04The target is to see submissions of their plans by the year-end.
06:09We have targeted 88 companies.
06:11Why 88?
06:12Because 88 companies attribute more than 80% of total market capitalization.
06:17And we feel that there is a need.
06:20If we want to push and make the needle move,
06:23that's where we have to focus on.
06:25And we are seeing traction.
06:27The Glicks will be coming out to show support.
06:29And they have articulated the same to us.
06:32And I think for us, the need to see companies buy in,
06:38and that's critical,
06:39to be able to ensure that companies actually have conviction
06:43to support this program.
06:44We came into the segment talking about the weakness in the Malaysian ringgit.
06:50And some say that the currency reflects the state of the economy.
06:53What is the state of the economy?
06:55I think at the end of the day, if you look at the macros,
06:58Malaysia's numbers are fantastic.
07:00It remains resilient.
07:02First quarter GDP growth of 5.4%.
07:06We see inflation low.
07:08We see rates very stable.
07:11And at the end of the day, the macro drivers remain to be strong.
07:16In terms of, there has been some retracement of the ringgit,
07:19but we're still at multi-year highs.
07:21And if you look at it,
07:23it will benefit a lot of the bursa companies
07:25who are very strong in the export markets.
07:27And that will make us very attractive from an investor perspective.
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