Lower stamp duties, faster IPO process to boost stock market - PM

Prime Minister Anwar Ibrahim today announced several measures aimed at boosting investments and trading in Bursa Malaysia.

Among the efforts are reducing stamp duty rates and reforms to expedite the initial public offering (IPO) process to make it easier and faster to list on the local stock market.

Anwar said the government, together with the Securities Commission and Bursa, have come up with measures across three pillars aimed at driving economic growth.

To encourage the public to invest more, the immediate-term solution is to lower the stamp duty rate for shares traded on Bursa from 0.15 percent to 0.1 percent of the contract value.

This is subject to a maximum cap of RM1,000 per contract and will take effect in July.

"I am confident that this step will stimulate the market and enhance its attractiveness," he said in a speech at the Securities Commission headquarters in Kuala Lumpur today.

"The increase in market liquidity will attract more domestic and foreign funds into the Malaysian stock market, thereby 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," he added.

The premier was speaking at the Capital Market Graduate Programme launch - now rebranded as "InvestED."

Also present at the launch were Deputy Finance Minister Ahmad Maslan and Higher Education Minister Khaled Nordin.

Prime Minister Anwar Ibrahim

Meanwhile, to attract more financing support for SMEs and the new economy, Anwar said the finance ministry and Securities Commission will look at policies to facilitate and attract the setting up of family offices in Malaysia.

He added that the government will also promote corporate venturing to drive greater domestic direct investment through more facilitative tax and incentive policies, as well as widen the definition of sophisticated investors.

Anwar said that as a start towards Malaysia's capital market and economic transformation, the Securities Commission and Bursa Malaysia will expedite the IPO process to make it easier and faster to list on the local stock market.

"I have given instructions that the ease and pace of approval must be faster from the present six months to a shorter period to allow for more vibrant activity in the market," he said.

Meanwhile, Anwar was asked by a reporter later if his announcements today would strengthen the ringgit.

He responded that today's announcements and the ringgit currency were "not interrelated".

"But hopefully, we can. But the most important is that this policy's fundamentals must be strong," said the premier.

Earlier, he said, despite the multiple challenges inherited by the government, early economic indicators show that its policies and the national budget measures were "bearing fruit".

"This is such as Malaysia's strong growth of 5.6 percent in the first quarter of 2023 and a reduced unemployment rate of 3.5 percent.

"The affirmation of credit rating by Fitch and Moody's earlier this year also reflects their confidence in the government's determination to sustain economic growth momentum.

"This government will do all needed to drive inclusive and sustainable growth, an open economy that respects free financial flow.

"To further promote domestic growth, the cabinet will accelerate the implementation of government projects and facilitate approvals for businesses such as applications for skilled expatriates," he said. - Mkini