Measures to strengthen the ringgit

by | Jun 21, 2023 | Business, LOCAL, NATIONAL, NEWS | 0 comments

Malaysian Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim (DSAI), at a press conference after the launch of InvestEd announced that the ringgit is expected to strengthen following measures taken to boost the capital market.

DSAI explained that although the announcement of these measures and the ringgit are not related, he is hopeful of improvements in the Malaysian currency, but what is more important is that economic fundamentals remain strong.

The first key step is to widen investment and wealth creation opportunities for the rakyat including attracting a larger pool of investors to support Small and Medium Enterprises or SMEs as well as new economies.

The second step to restore investor confidence is to engage in market and structural reforms by reducing the stamp duty rate for shares traded on Bursa Malaysia Securities from 0.15 percent to 0.1 percent of the contract value.

The third step, after the first two measures are implemented, is to increase market liquidity to attract more domestic and foreign funds to the local stock market and encourage SMEs to pursue Initial Public Offerings (IPOs).

DSAI also stated that reforms will be initiated by the Securities Commission and Bursa Malaysia by this year to facilitate listings on the exchange including expediting the IPO process and shortening the time taken to market.