GOVT INTRODUCES NEW MEASURES TO MAKE STOCK MARKET MORE ATTRACTIVE
Duty exemption is for three years
PRIME Minister Datuk Seri Najib Razak yesterday announced new measures that will make the local stock market more attractive to investors.
Addressing an audience of global thought leaders, industry experts and capital market decision makers at the 2018 World Capital Markets Symposium (WCMS), he said stamp duty on shares of mid- and small-cap companies traded on Bursa Malaysia will be waived, effective March this year, for a period of over three years.
He said the mid- and small-cap segments of the stock market held a total market capitalisation of RM217 billion, which represented more than a third of companies listed on Bursa Malaysia.
“This is a very important segment of our stock market that will pave the way for future large companies, with more corporate activity and greater investment value for investors,” said Najib.
He said new investors would be given a fee waiver on trading and clearing fees for six months to encourage more participation.
Margin financing rules, meanwhile, will be liberalised and intra-day short selling will be allowed for all investors.
A new category of traders who trade on their account, known as “Trading Specialists”, as well as a volume-based incentive programme will be introduced by the exchange, to promote greater trading activity.
Najib said these measures would widen investment options and contribute towards greater activity and vibrancy in the local capital market.
He also announced that government-linked companies (GLCs) would contribute at least one per cent of their pretax profits to social and environmental causes.
“We believe that our GLCs can and should play a bigger role in making a positive contribution to society.”
He said just one per cent from the top 100 public-listed companies would translate into more than RM1 billion going back to society.
The Malaysian capital market has over the years steadily grown to RM3.2 trillion, with average fund raising of more than RM110 billion annually.
The fund management industry manages more than RM760 billion in assets.
Themed “Renaissance of Capitalism: Markets for Growth”, the two-day symposium will examine the need for the re-orientation of financial markets and how innovation and technology can be leveraged to drive sustainable and inclusive growth.
Among the highlights of the symposium are discussions on the market outlook this year, digital revolution, gender diversity, investment values, future of finance and the future of capitalism.