Securities Commission Malaysia's Comments on Budget 2023

Kuala Lumpur, 24 February 2023

The Securities Commission Malaysia (SC) welcomes the measures announced by the Government in the retabled Budget 2023. These initiatives highlight the Government’s priority of balancing the need to support the continued growth of the Malaysian economy in this challenging global environment with its commitment to restoring fiscal health.

Key measures for the capital market include: 

  1. The Government has allocated RM40 million to the Malaysia Co-Investment Fund (MYCIF) as an additional fund for alternative financing. This will bring the availability of accumulated funds under MYCIF to RM300 million.
  2. The SC will also facilitate more marketplaces for secondary trading of private market instruments to increase liquidity and enable better price discovery.
  3. To encourage the listing of local high growth technology companies, the Government will allow the issuance of dual-class shares.
  4. The Government will extend tax deduction of up to RM1.5 million on listing expenses on the ACE and LEAP Markets until the year of assessment 2025. The tax deduction is also extended to cover the cost of listing of technology-based companies on the Main Market of Bursa Malaysia.
  5. Tax deduction on the cost of issuing SRI-Linked Sukuk that is approved or permitted or deposited with the SC for a period of five (5) years.

Quotes by SC Chairman Dato’ Seri Dr. Awang Adek Hussin:

“The SC welcomes these measures and incentives, which would enable the capital market and its supporting ecosystem to serve the needs of the domestic economy and businesses.

MYCIF has been successful in securing financing needs for startups and MSMEs. The additional RM40 million to MYCIF will further enhance the liquidity of ECF and P2P markets to better serve the financing needs of this important segment of the economy.

Allowing dual-class share structures will also help high-growth, innovative companies to the Malaysian capital market, allowing investors access to more diversified investment opportunities.

Similarly, the tax incentives on listing fees for the ACE and LEAP Markets, as well as technology-based companies on the Main Market of Bursa Malaysia, would help increase trading interest in the market by allowing investors to capitalise on these companies’ growth potential.

The SC also welcomes the tax deduction on the cost of issuing SRI-linked sukuk. This demonstrates the role of the capital market in enabling the country’s transition towards a greener and more sustainable economy, by mobilisation of capital towards initiatives that provide more positive impacts to society.

The SC will work with the Ministry of Finance and the relevant stakeholders to operationalise them. Further details will be announced in due course.


about the SC
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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