Malaysia to ease IPO rules this year to lure investors
MALAYSIA will implement reforms this year to make it easier for companies to list on the national stock exchange in a bid to attract more investors, Prime Minister Anwar Ibrahim said on Monday (Jun 19).
Reuters’ report said the securities regulator and the stock exchange will expedite the process for initial public offerings (IPO) and reduce time-to-market to ensure Malaysia’s competitiveness and attractiveness, Anwar said at an industry event.
Bursa Malaysia is aiming for 39 new listings with an estimated combined market capitalisation of RM10 billion (S$2.9 billion) in 2023. Last year, the stock exchange saw 35 IPOs with a combined market capitalisation of RM11.2 billion.
He also announced a reduction in stamp duty charges for shares traded on Bursa Malaysia to increase investor interest.
From July, stamp duty will be reduced from the current 0.15 per cent to 0.10 per cent of contract value, subject to a maximum cap of RM1,000 per contract, Anwar said.
“This change will directly reduce the cost of securities transactions and make the Malaysian stock market more competitive,” he said.
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The government is also looking at policies to attract family offices to Malaysia, and improve ease of conducting business, he said.
Since taking power in November last year, Anwar’s administration has embarked on a slew of legal and economic reforms, including reducing subsidies for the wealthy and abolishing the mandatory death penalty.
Separately, Securities Commission Malaysia chairman Awang Adek Hussin is optimistic that these measures will create a more vibrant capital market to drive the country’s economic growth.
In a media statement on Monday, he said such initiatives will boost greater trading participation and access to financing in the market, encouraging the growth of innovative companies and fostering greater diversity and inclusivity in the industry.
Bursa Malaysia chief executive Muhamad Umar Swift noted that such measures will complement existing development initiatives to stimulate market activity and create a more dynamic market.
“These measures will widen affordable investment choices for Malaysians and deepen investor interest in Malaysia’s market, leading to Bursa Malaysia becoming a destination of choice for fundraising,” he said.
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