The government has officially implemented the stamp duty (remission) (no.3) order 2023, as announced by Bursa Malaysia in a circular. The attached copy of the order reveals that the stamp duty for shares traded on Bursa Malaysia will be reduced to 0.10% from 0.15% of the contract value, with a maximum value of RM1,000 per contract, effective from July 13, 2023, until July 12, 2028.
Last month, Prime Minister Datuk Seri Anwar Ibrahim had announced this reduction in stamp duty for shares traded on Bursa Malaysia, emphasizing the direct impact it would have in reducing the cost of securities transactions and enhancing the competitiveness of the local stock market.
He expressed confidence that this measure would stimulate market activity, attract more domestic and foreign investments, encourage SMEs to pursue IPOs, facilitate fundraising for public-listed companies, and ultimately create more job opportunities.
In 2022, the government had already removed the RM200 stamp duty cap on contract notes for listed share trading, while simultaneously increasing the rate from 0.1% to 0.15%. Additionally, the sales tax on brokerage activities for the trading of listed shares had been waived.
These initiatives by the government aim to support the growth and development of the Malaysian stock market, promote liquidity, and encourage investment, benefiting both market participants and the overall economy.
