From an economic viewpoint, the Malaysian economy could be seen as a “finance-led” growth economy, with the growth of the finance sector especially the stock market, assisting or even creating the momentum of the economic growth. The stock market is seen to be acting the role of allocating resources in efficient manners which would then spur growth (Chong, Zulkornain Yusop, Law & Sen 2003). Funds,especially from foreign investors through the domestic stock market play significant roles in financing the domestic enterprises which in the end would increase the domestic output. As so, the development of the domestic stock market should not be neglected when we are considering of stimulating the domestic economic growth but should be seen as a whole. Some more, the endogenous growth model which emphasizes the importance of the role of stock market development along the path of real development prompts us to pay much more efforts than we have to develop the domestic stock market when speaking of pushing the economic growth (Bose 2005). But, unfortunately, the next 10 or 50 years to come would post great challenges in our efforts to do so. This is due to the emergence of plenty of new and attractive markets in the world that would shed our domestic market’s attractiveness globally. All these, in my opinion, should bring to our great concern and should constitute the main themes for developing the stock market in the future. But, where should we start?
What we have done in developing the domestic stock market or the financial system as a whole in the past has been great. What to come after our 50 years of independence? Only time has the answer.