KUALA LUMPUR: The stamp duty rate on share sales on Bursa Malaysia Securities will be reduced from the current 0.15 per cent to 0.10 per cent of contract value, effective from July this year.
Prime Minister Datuk Seri Anwar Ibrahim said subject to a maximum cap of RM1,000 per contract, this change will directly reduce the cost of securities transactions and make the Malaysian stock market more competitive.
"I am confident that this step will stimulate the market and enhance its attractiveness," he said at the launch of a flagship capital market initiative here today.
Anwar said the move to increase in market liquidity will attract more domestic and foreign funds into the Malaysian stock market.
"Thereby encouraging small and medium enterprises (SMEs) to pursue initial public offerings (IPOs) and facilitating public listed companies in raising funds to expand their businesses and create more job opportunities," he said.
Meanwhile, Anwar said to attract a larger pool of investors to support financing for SMEs and the new Economy, the Ministry of Finance (MOF) and Securities Commission (SC) will look at policies to facilitate and attract the setting up of family offices in Malaysia.
He said both parties will also work to promote corporate venturing to drive greater domestic direct investment (DDI) through more facilitative tax and incentive policies.
"We will look at policies to widen the definition of sophisticated investors including angel investors," he said.
In addition, Anwar said the government recognises that the longer term market and structural reforms will be required for Malaysia's capital market and economic transformation.
However, he said in order to encourage more companies to be listed on Bursa Malaysia, the SC and Bursa Malaysia will implement reforms this year to make it easier and faster to list on Bursa Malaysia.
"We will expedite the IPO process and reduce time-to-market to ensure Malaysia's competitiveness and attractiveness.
"Any reform requires discipline and patience. It also requires confidence and courage to do new things and make difficult decisions for the benefit of the people and the nation.
"To further promote domestic growth, the cabinet will accelerate the implementation of government projects and facilitate approvals for businesses such as applications for skilled expatriates," he added.