KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak today announced the upcoming establishment of the Malaysia-Singapore Connect, which will enable stock market investors from each country to trade in the other, seamlessly.
The Malaysia-Singapore Connect will enable investors from both countries to access into a market capitalisation (market cap) of over US$1.2 trillion, through over 1,600 public listed companies.
In his keynote delivery at the 2018 World Capital Markets Symposium (WCMS), Najib said both him and Singapore's Prime Minister Lee had agreed that now is the ideal time to establish a market corridor connecting both countries’ stock exchanges.
"I am glad to say that we have agreed that both markets have reached sufficient level, sophistication and degree of maturity for us to establish a market corridor connecting Malaysia and Singapore, with a trading link between our respective exchanges, to spur further mutual benefits and harness the economic potential of our two nations,” he said.
“A regulatory arrangement will be worked on by the countries’ relevant regulatory authorities to pave the way for the establishment of this trading link.”
Najib had earlier announced other initiatives to further spur the vibrancy of the country's mid and small-cap segment of the stock market, which currently holds a total market capitalisation of RM217 billion which represents over a third of companies listed on Bursa Malaysia.
“This is a very important segment of our stock market that will pave the way for the future large companies, with more corporate activity and greater investment value for investors,” said Najib.
“To enhance better value recognition and vibrancy in this segment of the stock market as well as to encourage investor participation, I am announcing that stamp duty on shares of mid and small-cap companies traded on Bursa Malaysia will be waived, effective March 2018 for a period of over three years,” he said.