Bursa welcomes stamp duty exemption, trading to resume

Bursa Malaysia CEO Datuk Seri Tajuddin Atan said the Corporate Governance Guide would enable listed issuers improve their corporate governance practices and reporting.

KUALA LUMPUR: Bursa Malaysia has welcomed the government's decision to exempt stamp duty on shares of mid and small cap companies, which will take effect in March 2018.

Its chief executive officer, Datuk Seri Tajuddin Atan said on Tuesday the move, which is for three years, was a recognition of the importance of this market segment. 

“This will further boost our current initiatives such as Mid and Small Cap (MidS) Research Scheme and the Leading Entrepreneur Accelerator Platform (LEAP) Market,” he added. 

Meanwhile, trading in the stock exchange operator, which was suspended in the morning session on Tuesday, will resume at 2.30pm.

Prime Minister Datuk Seri Najib Tun Razak had on Tuesday announced a raft of  initiatives would be taken to stimulate vibrancy of the local bourse.

In his keynote address at the World Capital Market Symposium 2018, Najib said the waiver of the stamp duty was to enhance better value recognition and vibrancy in this segment of the stock market, as well as to encourage greater investor participation.

After extensive discussions with the Securities Commission, Najib said several measures would also be implemented to enhance the local stock market.

Tajuddin said these measures would strengthen its long-standing efforts aimed towards increasing the depth and breadth of the capital market. 

“Furthermore, these liberalisations as well as incentives granted will enhance the vibrancy and liquidity of our market,” he said.

Tajuddin also welcomed the proposed establishment of a stock market trading link between Bursa Malaysia and Singapore Exchange (SGX). 

Najib announced the trading link would allow investors to trade and settle shares listed on each other’s stock market in a more convenient and cost efficient manner. 

“Bursa Malaysia is committed in our pursuit to strengthen our proposition as Asean’s multinational marketplace with global connectivity and the stock market trading link between Bursa Malaysia and SGX announced by the Prime Minister earlier could potentially be a step towards this goal,” he said. 

The Exchange will work with SGX, the industry and the relevant regulatory bodies in operationalising this cross-border initiative.