Tuesday, 25 September, 2018

Malaysia to introduce incentives to stimulate stock trading: PM

Before global business community Najib says unlike ‘confrontational’ predecessor Prime Minister Datuk Seri Najib Razak said his administration was not one that acted out of vindictiveness or spite
Melinda Barton | 09 February, 2018, 10:21

He also said a new category of traders, known as "Trading Specialists" would be introduced, apart from a volume-based incentive programme by the exchange, to catalyse greater trading activity. In line with this, MAS and SC will form cross-border supervisory and enforcement arrangements operationalise the bilateral link.

He said the link would enable seamless access between the markets, which have a combined market capitalisation of more than $1.2 trillion and about 1,600 public listed companies.

The new trade link between Bursa Malaysia and the Singapore Exchange would allow investors to trade and settle shares listed on each other´s stock market in a more convenient and cost efficient manner, benefiting retail investors, regulators of both countries said in a joint statement.

Najib also announced that the government had embarked on extensive discussions with the Securities Commission, whereby, both parties chose to undertake measures to further stimulate vibrancy in the market.

He said Malaysia and Singapore agreed that both stock exchanges had reached a sufficient level of sophistication and degree of maturity for the establishment of the market corridor.

"This is a very important segment of our stock market and which will pave the way for large companies, more corporate activity and greater investment value for investors", he added. The two countries launched a regional trading link in 2012 that was later joined by Thailand, but the system was quietly shut down previous year without any explanation.

Malaysia's Securities Commission chairman Ranjit Ajit Singh said there were weaknesses in the 2012 system like its convoluted structure, costs, and some trade settlement issues, that would be addressed in the new link.

Formerly one country, Singapore separated from Malaysia in 1965.

"The World Bank says that we are expected to achieve high-income country status in the next few years and they state that, and I quote, "The Malaysian economy is progressing from a position of strength", he added.