KUALA LUMPUR (July 13): The government has gazetted the stamp duty (remission) (no.3) order 2023 on Wednesday (July 12), according to a circular by Bursa Malaysia.

According to a copy of the order attached to the circular, stamp duty for shares traded on Bursa Malaysia will be lowered back to 0.10% from 0.15% of contract value, with a maximum value of RM1,000 per contract, from July 13, 2023 to July 12, 2028.

Last month, Prime Minister Datuk Seri Anwar Ibrahim announced the lower stamp duty for shares traded on Bursa Malaysia, saying the move will directly reduce the cost of securities transactions and enhance the competitiveness of the local stock market.

“I am confident that this step will stimulate the market and enhance its attractiveness. The increase in market liquidity will attract more domestic and foreign funds into the Malaysian stock market, thereby encouraging SMEs (small medium and enterprises) to pursue initial public offerings (IPOs) and facilitating public-listed companies in raising funds to expand their businesses and create more job opportunities,” he added.

In 2022, the government had removed the RM200 stamp duty cap on contract notes for the trading of listed shares, and had raised the rate to 0.15% from 0.1%, while waiving sales tax on brokerage activities for the trading of listed shares.