Rules loosened for KL bonds

MALAYSIA'S bond market could see a significant jump in activity next year when unrated corporate debt papers are deemed tradable under flexibilities allowed by the authorities in the run-up to mandatory credit ratings being scrapped in 2017.

International credit rating agencies with full foreign ownership would also be allowed in the domestic market from the same date, Prime Minister Najib Razak announced at Invest Malaysia 2014 yesterday.

In addition, he said, foreign corporations would be allowed 100 per cent ownership of unit trust management companies with immediate effect, and new ones coming into the country would not face entry barriers.