In an effort to enhance the vibrancy and competitiveness of its capital market, Malaysia has announced plans to reduce the stamp duty rate on transactions carried out on its national exchange, Bursa Malaysia. The current rate of 0.15% per contract will be lowered to 0.1% per contract while maintaining the existing stamp duty cap of 1,000 Malaysian ringgit ($216.24) per contract.
This adjustment, which will come into effect in July, aims to directly reduce transaction costs, particularly benefiting retail investors who are more sensitive to expenses. By lowering the stamp duty, Malaysia seeks to attract greater participation in the capital market and promote a more conducive environment for investment.
Moreover, Malaysia’s finance ministry and securities commission are actively exploring policies to encourage the establishment of family offices within the country. They also aim to facilitate and attract corporate ventures that can drive domestic direct investment by implementing more favorable tax and incentive policies. These initiatives aim to position Malaysia as an attractive destination for wealth management and corporate investments,stimulating economic growth and diversification.
In addition to the aforementioned measures, regulators in Malaysia are committed to streamlining processes and reducing market friction to expedite the time-to-market for initial public offerings (IPOs). By addressing regulatory complexities and promoting a more efficient IPO framework, Malaysia aims to attract more companies to “go public”, facilitating access to capital and fostering greater market participation.
These strategic steps Malaysia’s securities commission and finance ministry took demonstrate a proactive approach toward strengthening the country’s capital market and investment landscape. By reducing transaction costs, promoting wealth management, attracting corporate ventures, and streamlining IPO processes, Malaysia aims to bolster investor confidence, attract capital inflows, and foster sustainable economic growth.