In a move to stimulate the Malaysian stock market, while also making it more attractive to investors, the government has gazetted a stamp duty reduction on shares traded on Bursa Malaysia.
While the reduction was first announced by the Prime Minister last month, the order was officially gazetted yesterday (July 12) according to a Bursa Malaysia circular.
According to a copy of the order attached to the circular, the stamp duty for shares traded on Bursa Malaysia will be reduced from 0.15% to 0.10% of the contract value, with a maximum value of RM1000 per contract. The reduction will last for five years, starting from 13th July 2023 to 12th July 2028.
In his announcement, Datuk Seri Anwar Ibrahim said that the move will directly lower the cost of securities transactions and enhance the competitiveness of the local stock exchange.
“I am confident that this step will stimulate the market and enhance its attractiveness. The increase in market liquidity will attract more domestic and foreign funds into the Malaysian stock market, thereby encouraging SMEs (small medium and enterprises) to pursue initial public offerings (IPOs) and facilitating public-listed companies in raising funds to expand their businesses and create more job opportunities,” he added.
The Bursa Malaysia circular order also mentioned that the stamp duty reduction is one part of two measures introduced to drive Malaysia’s economic growth and capital market attractiveness.
The other measure that was announced in the order is that the Ministry of Finance along with Securities of Commissions Malaysia will be looking into introducing further policies to help achieve a few other goals, such as the setting up of family offices in Malaysia, promote corporate venturing, and widening the definition of sophisticated investors.
