PUBLIC SECTOR MORE ACTIVE IN RAISING CAPITAL MARKET FUNDS IN 1998 (1383).

KUALA LUMPUR, March 31 (Bernama) -- For the first time since 1988, the public sector was more active in raising funds in the capital market compared with the private sector, said Bank Negara Malaysia in its 1998 annual report released here today.

The public sector raised RM9.8 billion last year versus a net redemption of RM1.4 billion in 1997, accounting for 55 percent of the net funds raised during 1998, the central bank said.

"This was a significant development, reflecting the leading role by the government in reviving economic activities," it said.

In terms of debt instruments issued by the public sector, Malaysian Government Securities (MGS) accounted for the bulk of the gross issuance at 84.5 percent, with six new issues of MGS in 1998 totalling RM14.95 billion, it said On the other hand, net funds raised by the private sector from both the equity and debt markets stood at RM8 billion in 1998 compared with RM34.947 billion the year before, Bank Negara said.

The lower amount of funds raised reflected mainly investors' aversion to investments in corporate bonds and the lower demand for funds by bond issuers, it added.

In the longer-term corporate debt securities market, gross funds sourced …