PETALING JAYA: Bursa Malaysia is likely to use income from the revision of its fee structure to offset the new annual fee and derivative levy it has to pay the Securities Commission (SC).
The Finance Ministry had recently approved charges that would see the exchange operator pay to SC an annual fixed regulatory fee of RM28mil and levy of 37.5% of derivatives revenue.
The total amount payable by the exchange to the regulator, however, would be capped at RM35mil in 2026, RM40mil in 2027 and RM45mil in 2028.
In turn, the SC had approved Bursa’s proposed revision to selected listing and regulatory-related fees, with additional income from the revisions estimated at RM28mil to RM34mil per annum.
“We think Bursa’s payable fee to SC would be largely offset by the additional income from the fee revision.
“For instance, the cap on the fee paid to SC would be at RM35mil in financial year 2026 (FY26), while Bursa expects its fee revision to generate additional income of RM28mil to RM34mil per annum.
“In the longer term (for financial years ending 2027 and 2028 or FY27 and FY28), the income generated from the fee revision could possibly increase in line with the rise in trading activities in the equity market.
“This would help to largely offset the higher caps in SC fee in FY27 and FY28,” CGS International (CGSI) Research stated in its latest report on the exchange operator.
CIMB Research added that prior to this change, Bursa only paid a securities levy to the SC equivalent to 37.5% of securities trading revenue, with no fixed regulatory fee imposed. Hence, the RM28mil annual charge and the extension of the 37.5% levy structure to derivatives revenue represent an incremental regulatory cost component to the company.
“We believe the introduction of the derivatives levy at 37.5% mirrors existing practices in the securities segment, aligning the regulatory cost framework across Bursa’s business verticals.
“Overall, the fixed RM28mil regulatory fee and the fee caps of RM35 to RM45mil over the next three years offer a measure of financial certainty,” it noted.
It estimated the new SC fee could increase Bursa’s annual operating expenses by 9.3% in FY26 and 10.5% in FY27, which would reduce profit projections by 9.9 % for FY26 and by 11.2% for FY27.
“The final amount is contingent on trading volumes and derivatives revenue contribution,” CIMB Research stated.
The research house said assuming full pass-through of higher listing fees and stable trading volumes, net impact on Bursa’s net profit is estimated to be minimal, down 0.3% for FY26 and down 1.7% for FY27.
CIMB Research maintained its “hold”call on Bursa with a discounted cash-flow derived target price of RM7.40 a share pending the release of its third-quarter results at the end of this month and further details on the revision to selected fees.
It said the company is now fairly valued, trading at around 25.1 times its FY26 price earnings multiple, supported by a dividend yield of 3.8%.
