KUALA LUMPUR (June 19): The recently announced measures to enhance Malaysia’s capital market by Prime Minister Datuk Seri Anwar Ibrahim will boost capital market vibrancy and competitiveness, said capital market regulators: the Securities Commission (SC) and Bursa Malaysia Bhd.
In a statement, both regulators said that the measures will boost greater trading participation and access to financing the market, creating a more dynamic and liquid market environment.
“The capital market initiatives [that have been] announced will boost greater trading participation and access to financing in the market, encouraging the growth of innovative companies and fostering greater diversity and inclusivity in the industry.
“The SC is optimistic that these efforts will create a more vibrant capital market to drive economic growth in the country,” said SC chairman Datuk Seri Dr Awang Adek Hussin in the joint statement with Bursa Malaysia.
Meanwhile, Bursa Malaysia’s CEO Datuk Muhammad Umar Swift said that the multi-pronged measures by the government and market regulators reflect the intent to create a conducive environment for a thriving capital market, recognising the pivotal role played by a well-functioning capital market in fostering robust economic growth.
“A liquid and strong performing capital market has tremendous benefits to numerous stakeholders, and the economy as a whole. More importantly, the measures will widen affordable investment choices for the rakyat, and deepen investor interest in our market,” said Muhammad Umar in the statement.
On Monday (June 19), Anwar, who is also the Minister of Finance, announced the capital market enhancement measures and launched the Capital Market Graduate Programme (CMGP).
The measures announced were as below:
1. Reduction of the stamp duty for trading of listed shares on Bursa Malaysia to 0.10%, from 0.15%, subject to a maximum cap of RM1,000 per contract. The changes will take effect in July this year, which will directly lower the cost of transactions, especially for retail investors who are particularly sensitive to costs;
2. To widen the pool of investors, the Ministry of Finance (MOF) and SC will look at policies to facilitate and attract the setting up of family offices in Malaysia, to promote corporate venturing to drive greater domestic direct investment through more facilitative tax and incentives policies, and to widen the definition of sophisticated investors to include angel investors;
3. The capital market regulators also commit to explore ways to reduce market friction and shorten time to market for initial public offerings (IPOs).
Both the SC and Bursa Malaysia will collaborate with the MOF, industry partners and other relevant bodies to explore further measures in ensuring an inclusive and sustainable capital market.