KUALA LUMPUR: The harmonisation of rules and facilitation of trade flow are aspects that should first be focused on for the upcoming Bursa-SGX Trading Link, said BURSA MALAYSIA BHD chief executive officer Datuk Seri Tajuddin Atan.
Speaking at the sidelines of Bursa Malaysia’s annual general meeting (AGM) yesterday, Tajuddin said the current focus of the Bursa-SGX Trading Link, expected to be launched by year-end, seemed to be more on its infrastructure.
“The conversation we should be having is the harmonisation of rules and how to facilitate trade flow, then only look at infrastructure.
“We also have to consider if the current infrastructure is something we can improve on or do we build a new bridge?
“Currently, at the policy level, the Securities Commission of Malaysia and the Monetary Authority of Singapore are in talks.
“The next step (of discussion) would be at the operators’ level, namely Bursa Malaysia and Singapore Exchange Ltd, to detail plans to roll out the Bursa-SGX Trading Link,” he said.
Apart from that, Tajuddin said it was still too early to tell how the US-China trade war would impact Malaysia.
He pointed out that the demographics and trading volume showed that Malaysia traded more with Asean than the United States.
Meanwhile, Tajuddin said four of the seven initiatives to boost the local capital market as announced by Prime Minister Datuk Seri Najib Razak back in February were already in place.
Tajuddin also said that he expected the opening of intra-day short selling to all investors to be completed in the first half of the year.
All resolutions of Bursa Malaysia’s AGM and EGM yesterday were passed.
Tajuddin shared that shareholders enquired about the fees paid to the board of directors of Bursa Malaysia, to which they were assured that the compensation for the board to carry out their duties to Bursa Malaysia was with regards to the respective skill sets, experience, wisdom, and guidance.
“Going forward, with Bank Negara and the International Monetary Fund’s gross domestic product (GDP) growth forecast of an estimated 5.5% as well as the improving corporate earnings, we believe that the Malaysian stock market should perform relatively well this year,” added Tajuddin.