STAMP DUTY WAIVER FOR SHARES OF MID AND SMALL CAP COMPANIES TRADED ON BURSA MALAYSIA
6 Feb 2018
Kuala Lumpur: Stamp duty on share of mid and small cap companies in Malaysia will be waived with effect from March 2018 for three years.
Prime Minister Datuk Seri Najib Tun Razak who made the announcement today also said a slew of initiatives would be taken to stimulate vibracy of the local bourse.
“To enhance better value recognition and vibrancy in this segment of the stock market, as well as to encourage greater investor participation, I am pleased to announce that stamp duty on shares of mid and small cap companies traded on Bursa Malaysia will be waived, effective March 2018, for period of three years,” he said in his keynote address at the World Capital Markets Symposium 2018 here today.
After extensive discussions with the Securities Commission, Najib said several measures would also be implemented to enhance the local stock market.
“Margin financing rules will be liberalised to make our market more attractive, intra-day short selling will be allowed to all investors,” Najib said.
“A new category of traders who trade on their own account, known as ‘Trading Specialists’, will be introduced,” he added.
In addition, Najib said, a volume-based programme would be introduced to by the exchange to catalyse greater trading activity, and all new investors will be given a fee waiver on trading and clearing fees for six months to encourage more participants to trade on the Malaysian market.
“These are just some of the steps we are taking to ensure that we do indeed participate in a renaissance of capitalism and that our growth is shared by all,” Najib explained.
At present, there are more than 350 listed small and mid cap companies with a total market capitalisation of RM217bil, accounting for more than a third of companies listed on Bursa Malaysia.