KUALA LUMPUR: Three key strategies have been identified to enhance a higher level of market vibrancy and at the same time to improve the attractiveness of the local capital market, says Prime Minister Datuk Seri Anwar Ibrahim (pic).
Anwar said that the first step is to widen investment and wealth creation opportunities for the rakyat, funding inclusivity for small and medium businesses (SMEs) and new economies to raise funds.
The Finance Minister added that another part of the first step is to implement market and structural reforms to restore confidence in the country's dynamism and competitiveness.
"First, in the immediate term, as the capital market looks to widen affordable investment choices for the rakyat, coupled with the intent to deepen investor interest in our market, I am pleased to announce that the stamp duty rate for shares traded on Bursa Malaysia Securities will be reduced from the current 0.15% to 0.10% of contract value, subject to a maximum cap of RM1,000 per contract.
"This will take effect in July," he said in his address at the launching of a flagship capital market at the Securities Commission (SC) today (June 19).
Anwar explained that the change would directly reduce the cost of securities transactions and make the Malaysian stock market more competitive.
"I am confident that this step will stimulate the market and enhance its attractiveness," he said.
The increase in market liquidity, he noted, would attract more domestic and foreign funds into the Malaysian stock market, encouraging SMEs to pursue initial public offerings (IPOs) and facilitating public listed companies in raising funds to expand their businesses and create more job opportunities.
More to come
