The first significant milestone in the Malaysian Foreign Exchange (MFE) came in 1971, when the country replaced its currency peg with a managed float system. On 12 June, the Bank of Singapore announced that the ringgit would be sold for sterling and bought for the same. This marked the official beginning of Malaysia’s independent foreign exchange market. This was a huge step for the MFE as it became the first major national stock exchange in the world to open for trading in domestic currency against foreign currencies.
In 1967, the Bank of Malaya was granted the sole power to issue currency and began issuing the new Malaysian Dollar. This change removed the floor rate of USD1 to M$2.4805, which was the previous floor rate. The new ringgit continued to assist commercial banks in conducting their business and maintaining a smooth operation in the foreign exchange market. In February 2008, the BFS launched a virtual marketplace known as BURSAMKTPLC. This virtual platform provides investors with rich market information and trading ideas.
In 1997, the Bank Negara liberalized the banking sector and launched the FTSE Bursa Malaysia Small Cap Shariah Index, which serves as a benchmark for Sharia’s-compliant investments. In 2010, the Government enacted new rules to allow fund management companies to sell up to 70 percent of their shareholdings to foreign companies. In April of that same year, the BURSAMKTPLC or Bursa Marketplace was established, replacing the Mesdaq Market