Investment Education, Awareness Key To Preventing Scams – Bursa Malaysia CEO

ALOR SETAR, Oct 13 (Bernama) -- Financial literacy and investment awareness need to be strengthened to ensure that Malaysians are capable of making sound financial decisions and avoid becoming victims of increasingly sophisticated online investment scams.

Bursa Malaysia Bhd chief executive officer Datuk Fad’l Mohamed said easy access to information through social media, mobile applications and various digital platforms must be accompanied by the ability to assess the credibility of information, understand risks and identify suspicious investment offers.

He said investors should not base their decisions solely on claims of lucrative returns or information circulating widely online, but should instead verify sources and facts beforehand to avoid losses. 

“Knowledgeable investors are more capable of asking the right questions, identifying the warning signs and making decisions based on facts, instead of being swayed by claims or speculations,” he said.

Fad’l said this in his speech at the Kedah Stock Market Carnival with Bursa Malaysia, organised in collaboration with Universiti Utara Malaysia, here today.

Meanwhile, he said the average daily trading value of retail investors in Malaysia’s equity market stood at about RM638 million as at the end of September, and that Kedah had about 57,000 active retail investors, accounting for around two per cent of the country’s total active retail investors.

This reflects the people’s increasing interest in the capital market; however, such participation should be backed by sufficient knowledge and understanding so that their investments are made in an informed and responsible manner, said Fad’l.

He said investor education is an important measure to build public resilience against financial scams, including fake investment offers, misleading claims and manipulation tactics using digital platforms.

The Kedah Stock Market Carnival with Bursa Malaysia is part of Bursa Malaysia’s participation in World Investor Week, which carries this year’s theme, ‘Investor Resilience, Digital Deception and Scam Alert’.

The theme highlights the importance of investor resilience amid the flood of digital information, particularly the ability to distinguish legitimate investment opportunities from offers that warrant closer scrutiny.

Fad’l said investors should understand their chosen investment instrument, weigh the risks and verify information before making any decisions, while remaining alert to parties promising high returns without risk.

As part of efforts to expand access to investment education, the Stock Market Carnival has been held in several states since 2022 in collaboration with universities and local partners, enabling the public to engage directly with market participants and understand how the capital market operates.

The Kedah edition also targets university students and young people who are beginning to make decisions about their income, savings and future financial planning.

Participants have the opportunity to interact with stockbrokers, financial institutions and industry representatives, and attend briefings on capital market products and services.

The programme also provides guidance on opening a Central Depository System (CDS) account and getting started with investing, covering topics such as financial management, savings, retirement planning, social protection, taxation, credit management and scam awareness.

-- BERNAMA