KUALA LUMPUR (March 25): The regulatory framework for attracting family offices to Malaysia will be announced by the government during this year's budget announcement, according to Securities Commission Malaysia (SC) chairman Datuk Seri Awang Adek Hussin.
“We are working on the framework and have been having a series of meetings with the Ministry of Finance [MOF] in family offices.
"I believe the government will announce it in the budget. Hopefully, it will be good for Malaysia to attract family offices to be set up in Malaysia... It looks positive, but wait for the government announcement,” he said at a press conference after the release of the SC’s latest annual report on Monday.
In June 2023, Prime Minister Datuk Seri Anwar Ibrahim announced plans to attract a broader investor base for small and medium to the new economy.
Pursuant to this, the MOF and SC will look at policies to facilitate and attract the setting up of family offices in Malaysia.
SC reiterates relief measure for private placement had expired
When asked about whether any company was still allowed to issue new shares up to 30% of their share capital to raise funds, Awang Adek said the relaxed fund-raising rules had expired.
"The relief was given during the pandemic, [now] we have stopped that. That is also a reason we are seeing fund-raising activities come down," he explained.
Under the temporary relief measure, the threshold for new shares issuance was upped to 20%, from 10% previously. Companies can also issue up to 30% of their existing share capital in a placement if they receive shareholders’ approval at an extraordinary general meeting.
The easing of fund-raising rules was announced in April 2020, during the onset of the pandemic, and has expired since end-December 2022. Companies took advantage of the relaxed fund-raising rules. The fund raised from the secondary market jumped to RM22.6 billion in 2022, from RM4.5 billion in 2019.
Subsequently, in 2023, the funds raised from the secondary market eased to RM5.8 billion due to the expiration of temporary relief measures and also the completion of the merger exercise in the telco and media sector in 2022.
In the update in regards to a recent raid conducted by the SC reportedly around the Tropicana area in Petaling Jaya, Awang Adek said the investigation is ongoing, hence he is unable to share more details.
Just over a week ago, the SC has confirmed that the premises of certain public listed companies have been raided over the suspected abuse of fund-raising activities.
The Star reported, citing sources, that the regulator had kicked off the investigations following complaints and tip-offs from the public on alleged fraud, and the potential false or misleading disclosure by several public listed companies in their fund-raising exercises, including private placements, employee share option schemes and rights issues.