The local banking industry lauded the soon-to-be established Malaysia-Singapore Connect, as announced by the Prime Minister Datuk Seri Mohd Najib Razak at the World Market Capital Symposium yesterday.
Najib announced the establishment of the Malaysia-Singapore Connect, which will enable stock market investors from each country to trade in the other,seamlessly and 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.
Tan Sri Azman Hashim, Chairman Of Malaysian Investment Banking Association (MIBA) said that the association welcomes the establishment of the 'Malaysia-Singapore Connect', noting that it is a great market initiative from the Government, which will widen investment options for investors and create vast opportunities for our capital market. This is a positive move that will attract more investments to this region.
“Following the launch of the MidS Research Scheme last year, we are very pleased with the Government's continued support for the mid and small cap stocks. The waiver of stamp duty on the trading of small and mid-cap stocks for three years beginning March 2018, will further spur interest in this sector. The liberalisation of the margin financing rules is a laudable move that will further encourage the development of new and innovative products”, said Azman, referring to a few other measures as announced by the Prime Minister at the symposium yesterday.
Going forward, MIBA will continue to work closely with the Government towards developing a dynamic, innovative and vibrant capital market.
Datuk John Chong, CEO of Maybank Investment Bank and Maybank Kim Eng Group also welcome the move by both Governments to set up the Malaysia–Singapore Connect saying it is certainly positive and will increase the vibrancy of both capital markets.
“Malaysia and Singapore are the centre of ASEAN’s capital market activities. The synergy from this collaboration will not only benefit the two countries but also the whole region, and will set an important foundation for greater cooperation to follow.”
“For Maybank Investment Bank which is active in both markets, the trading link will enable us to serve our clients better and enhance our product offerings. We look forward to receiving more details on this exciting initiative.”
“We also view very positively the Government’s efforts to boost the trading of mid and small caps in Bursa, which is pivotal for SMEs. The initiatives announced today, offer both short term tactical and long term structural transformations that will augur well for the stock market, and encourage increased market activities,” he added.
Tengku Datuk Seri Zafrul Aziz, Group Chief Executive, CIMB Group said they are excited by the slew of capital market initiatives announced by the Prime Minister at the WCMS 2018.
“The Malaysia-Singapore Connect share trading initiative will not only attract more new players to participate in the wealth-creation of a total of 1600 listed companies across both markets, but also encourage financial product creation and diversification,” he noted.
He added that CIMB is ready to facilitate seamless participation in listed companies across both markets for its clients via our existing trading seats in Malaysia and Singapore. Coupled with all other initiatives like waiver of stamp duty for small and mid-cap stocks, 6-month waiver on trading and clearing fees for new investors and liberalisation of margin-financing rules, the stage is well-set for a more vibrant share-trading market, providing better opportunities for well-run listed companies of any size to thrive.