FINANCIAL MARKETS AND INSTITUTIONS IN MALAYSIA (EDISI KEDUA)

Understanding financial market concepts can be challenging for many students, particularly when most recommended textbooks are authored by international writers, which often results in a lack of local context. This book aims to fill the gap by presenting financial concepts with clear explanations and practical Malaysian examples, allowing readers to better explore and understand the subject matter. Our main objective is to make financial concepts accessible not only to students but also to general readers. To support learning, each chapter concludes with review questions designed to help readers assess their understanding.

This second edition has been revised and updated to reflect recent financial developments in financial markets, both globally and within Malaysia. New examples and updated case references have been incorporated to ensure that the content remains current, relevant, and practical. The book is organized into ten chapters. Chapter 1 provides an overview of financial markets and financial institutions. Chapter 2 describes the functions of money markets, their instruments, participants, and operations. Chapters 3 and 4 discuss the equity capital market and debt capital market, focusing on how these two markets differ yet complement each other. Chapter 5 examines the foreign exchange market (FOREX), while Chapter 6 introduces the derivatives market, covering forwards and futures, options, and swaps. Chapter 7 explains the roles and functions of Bank Negara Malaysia. Chapters 8 and 9 are devoted to banking institutions, with Chapter 9 giving special attention to Islamic banking. Finally, Chapter 10 explores non-bank financial intermediaries such as the Employees’ Provident Fund (EPF), insurance companies, unit trusts, crowdfunding, and venture capital.

We hope that this updated edition will continue to serve as both an informative and practical resource, not only for students pursuing courses in financial markets and institutions but also for anyone seeking a clearer understanding of how financial systems operate in Malaysia and beyond.