In a strategic move to draw global investors, Malaysia’s Prime Minister, Anwar Ibrahim, recently disclosed a series of economic reforms aimed at simplifying the process of listing on the national stock exchange.
At an industry event earlier this week, PM Anwar announced plans for the securities regulator and stock exchange to streamline the initial public offerings process. This action aims to lessen the time-to-market, thereby enhancing Malaysia’s competitiveness on the global stage.
An increase in investor interest is crucial to Malaysia’s market expansion, PM Anwar highlighted. Recognizing the need for long-term market and structural reforms, the government plans to support the transformation of Malaysia’s capital market and overall economy.
One key reform is the reduction of stamp duty charges on shares traded on Bursa Malaysia, which will drop from 0.15% to 0.10% of the contract value in July, capped at 1,000 ringgit per contract. This move is likely to decrease securities transaction costs, potentially boosting Malaysia’s stock market competitiveness.
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PM Anwar also discussed plans for the Ministry of Finance (MOF) and Securities Commission (SC) to develop policies that encourage the establishment of family offices in Malaysia, drawing more investors to the nation.
The government is also pushing for corporate venturing to stimulate domestic direct investment (DDI) through more enabling tax and incentive policies.
With the recent launch of a bilateral trade platform by Singapore and Malaysia, the country has been escalating efforts to attract more investments. This Annual Ministerial Dialogue (AMD) will foster cooperation on digital and green economy sectors and strengthen bilateral relations between both countries’ ministries.
During the first AMD, both countries’ ministers reviewed the progress of the cooperation frameworks on the Digital Economy and Green Economy, established during PM Anwar Ibrahim’s visit to Singapore in January 2023. The ministers have also announced a new taskforce for promoting cross-border business trade, leveraging the Malaysia External Trade Development Corporation (MATRADE) and Singapore’s Business sans Borders initiative.
This article is based on reporting from Marketing Interactive.
