SC and Bursa Malaysia Announce Additional Temporary Relief Measures for Listed Issuers

17 February 2021 | Kuala Lumpur

The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) today announced temporary relief measures for listed issuers in addition to those introduced in 2020^[1]. These additional measures will allow listed issuers more time to prepare their financial statements and put in place regularisation plans amid the Covid-19 pandemic. The additional measures are:

Extension of time to submit financial statements
An automatic 1-month extension for the issuance of quarterly and annual reports for the Main and ACE Markets as well as semi-annual and annual audited financial statements for the LEAP Market, which are due on 28 February 2021, 31 March 2021 or 30 April 2021 respectively.

Notwithstanding the 1-month extension, listed issuers are reminded to comply with the disclosure obligations under the Listing Requirements, including making immediate announcements of any material information to ensure that shareholders and investors have access to information in a timely manner.
Relief to listed issuers with unsatisfactory financial conditions and inadequate levels of operations

A 12-month relief period for a listed issuer that has announced between 1 January 2021 and 30 June 2021, that it has insignificant business or
operations ^[2]. This relief allows such listed issuer to reassess its condition at the end of the relief period before making the requisite announcements.
A 24-month regularisation timeframe, instead of 12 months, for a listed issuer that has announced between 1 January 2021 and 30 June 2021, that it has ceased all or major business or operations ^[3]; or is classified as a PN17/GN3 listed issuer ^[4].
An 18-month relief period, instead of 12 months as announced on 16 April 2020 ^[5], for a listed issuer that had triggered the suspended PN17 or GN3 criteria ^[6] between 17 April 2020 and 30 June 2021. A listed issuer will not be classified as a PN17/GN3 listed issuer during this period and is allowed to reassess its financial condition at the end of the relief period before making the requisite announcements.

The SC and Bursa Malaysia will continue to monitor ongoing developments and assess if further measures will be required to support listed issuers during this challenging period.

For further details on the above relief measures, please refer to the circulars issued to listed issuers published at the following website links:

SECURITIES COMMISSION MALAYSIA
BURSA MALAYSIA BERHAD

SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):

Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group
Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC

Refer to Bursa Malaysia’s circulars at:

Paragraph/Rule 8.03A(2)(b) of the Main and ACE Market Listing Requirements (LR) stipulates that a listed issuer may not have a level of operations that is adequate to warrant continued trading or listing on the Official List if the listed issuer has an insignificant business or operations. Under paragraph/Rule 8.03A(7)(b) of the LR, “insignificant business or operations" means business or operations which generates revenue on a consolidated basis that represents 5% or less of the share capital (excluding any redeemable preference shares and treasury shares) of the listed issuer based on its latest annual audited or unaudited financial statements.

Paragraph/Rule 8.03A(2)(a) of the LR states that a listed issuer may not have a level of operations that is adequate to warrant continued trading or listing on the Official List if the listed issuer has suspended or ceased -

all of its business or its major business; or
its entire or major operations,

for any reason whatsoever. For this purpose, paragraph/Rule 8.03A(7)(a) of the LR defines "major" to mean such proportion that contributes or generates 70% or more of the listed issuer's revenue on a consolidated basis based on its latest annual audited or unaudited financial statements.

⁴

This refer to a listed issuer which triggers the following criteria:

receivers or managers or judicial managers are appointed over the asset of listed issuer, subsidiary or associated company which asset accounts for at least 50% of total assets as set out in paragraphs 2.1(b) of Practice Note 17 and 2.1(d) of Guidance Note 3;
winding-up of listed issuer’s subsidiary / associated company which accounts for at least 50% of total assets as set out in paragraphs 2.1(c) of Practice Note 17 and 2.1(e) of Guidance Note 3;
auditors have expressed adverse or disclaimer opinion as set out in paragraphs 2.1(d) of Practice Note 17 and 2.1(f) of Guidance Note 3.

⁵

Refer to Bursa Malaysia’s circulars dated 16 April 2020 at:

⁶

This refers to the criteria on shareholders’ equity in paragraph 2.1(a) of Practice Note 17/Guidance Note 3; material uncertainty related to going concern and auditors’ qualification on going concern in paragraph 2.1(e) of Practice Note 17/paragraph 2.1(g) of Guidance Note 3; and default in payment in paragraph 2.1(f) of Practice Note 17/paragraph 2.1(h) of Guidance Note 3. In addition, the suspended GN3 criteria also include the criteria on losses as set out in paragraphs 2.1(b) and (c) of Guidance Note 3.