BACKGROUND TO THE CMDF

The establishment of the Capital Market Development Fund (CMDF) was approved by the Minister of Finance on 21 November 2002, as part of the policy proposal for the demutualisation of the (then) Kuala Lumpur Stock Exchange.

In recognition of their contribution towards the development of the stock exchange, the shares of the Exchange were allocated as follows:

• 40% was allocated to the broking industry, in recognition of their direct contribution and business risks undertaken to develop the exchange, of which:
  
  

  • 30% was allocated to the stockbroking companies and
  • 10% to the remisiers;
    
    
• 30% was allocated to MOF Inc, in recognition of the role of the government in their effort to develop and promote the Malaysian capital market; and
• 30% was allocated to the setting up of the CMDF, in recognition of the direct and indirect contributions of the non-broker community and other stakeholders to the growth and development of the exchange.

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