Implementation of Investor Education Initiatives

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Implementation of Investor Education Initiatives
Investor Education Creating and Delivering
Successful Programmes International
Conference 2-3 March 2009

Nik Ramlah Mahmood Securities Commission Malaysia
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Investor Education Blueprint (2008-2012)
Enhancing investor protection by ensuring
investors are knowledgeable and vigilant of their
rights
To inculcate money management culture among
school children
Schools
To increase familiarity with investing, awareness
of investors rights responsibilities and
develop resistance to scams
Rural / Blue Collar / Housewives
Widen financial literacy among key target
groups
Financial Literacy Programmes

Goal To create knowledgeable
vigilant Investors
Universities / Workplace
To increase sophistication in managing savings
and developing capability in investing
To create a greater pool of informed, capable
and responsible investors in the capital market
Investors / Potential Investors
Develop Responsible Intermediaries
Financial Capability Programmes
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Funding Investor Education A Shared
Responsibility
USD 1 million
USD1.7 Million
USD 570,000
USD860,000
Estimated cost of Investor Education Programmes -
2008
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A Holistic Approach To Investor Education
Parents / Rural / Blue Collar / Women
School Children
University Students
Employees of Government Large Organisations
Institutional Investors
General Investing Public
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Regulator-Driven Financial Literacy Programmes
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Partnering the Industry in Delivering Investor
Education Programmes
SIDC Training development arm of the
Securities Commission Malaysia
Capital market intermediaries industry
Financial capability programmes
Financial literacy programmes
Online learning Malaysian Investor website,
Exchange Associations websites
Media- Newspaper articles- TV capsules
Road shows
Seminars / Workshops / Camps / Challenges

• Programme delivery also via partnership with the
  following organisations
• Ministry of Education Schools
• Ministry of Women, Family Community Development
  Women
• Federal Land Development Authority Rural
  Community
• Federation of Malaysian Manufacturers Blue
  Collar Workers
• Institutions of Higher Learning University
  Students
• Public Service Department Government Employees

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Key Challenges

• Delivering Investor Education in Rural Areas

• Investor Education in a Multiracial
  Multilingual Society

• Funding Constraints

• Coordination of Investor Education Efforts

• Specific Measurement To Gauge Lasting Behavioral
  Change

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Delivering Investor Education in Rural Areas

• Low literacy/educational levels
• Susceptibility to investment scams
• Influence of family and community members in
  investment decisions
• Winning trust through local partners
• Geographical constraints

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Investor Education in a Multiracial and
Multilingual Society

• Demographic profile of Malaysian population
  (Total 27.9 million)
• Malays Indigenous (62)
• Chinese (23)
• Indians (7)
• Multilingual society
• Official language Bahasa Malaysia
• Language of commerce English
• Language spoken by different ethnicities
• Malay Kelantanese, Sarawakians, Kedahans,
  Sabahans and other dialects
• Chinese Cantonese, Hokkien, Hakka, Mandarin,
  Hainan Foochow
• Indians Tamil, Telegu, Malayalam, Urdu
  Gujerati
• Indigenous people Kadazan, Iban, Kelabit,
  Bidayuh Kayan
• Different ethnic groups have different economic
  status, financial literacy levels, investment
  profiles and risk appetites
• Limited language capabilities of trainers
  delivering investor education programmes to cater
  to the needs of multiracial and multilingual
  society

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Thank You
Securities Commission Malaysia 3 Persiaran Bukit
Kiara 50490 Kuala Lumpur Malaysia www.sc.com.my
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