In Malaysia, there are two stock exchanges and one futures exchange. The two stock exchanges are the Kuala Lumpur Stock Exchange or KLSE and the Malaysian Exchange of Securities Dealing and Automated Quotation or MESDAQ. The futures exchange in Malaysia is the Malaysia Derivatives Exchange or MDEX.
Before these organizations were created, the Singapore Stockbrokers' Association existed. It was the first formal securities business organization, which was established in 1930. In 1937, it was re-registered under a different name—Malayan Stockbrokers' Association.
In 1960 public shares commenced in Malaya under the newly established Malayan Stock Exchange. By 1961, the organization held offices in Kuala Lumpur and Singapore, which were linked by telephone lines. The offices shared same shares listed atthe sameset of prices.
Compared to European countries that had established a stock exchange before the 20th century, it was only in 1964 that the Stock Exchange of Malaysia was established. Later, this became the Stock Exchange of Malaysia and Singapore.
Later, the Stock Exchange of Malaysia and Singapore was reorganized or rather, divided into two: the Kuala Lumpur Stock Exchange Berhad or KLSEB and the the Singapore Stock Exchange. The divide was a result of the split between Malaysia and Singapore.
In 1973, currency interchangeability between Singapore and Malaysia ceased. Later, in 1976, The Kuala Lumpur Stock Exchange took over the KLSEB. Before it took over the KLSEB's operations, the KLSE was createdinto a company limited by guarantee. In 1994, the KLSEB was formally renamed as the KLSE.
The KLSE was demutualized on January 5, 2007. It was converted into a public company limited by shares. After this took place, the KLSE transferred the security exchange business to Bursa Securities. On April 14, 2007, Bursa Securities was renamed Bursa Malaysia Berhad and became an exchange holding company.
Under the Demutualization Act, non-profit mutual entities limited by ts members' guarantee is converted into a company limited by shares.
As of June 2007, the market capitalization of the KLSE stands at USD 307 billion.
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