Bursa Malaysia Expects Higher Growth in 2020
The Chief Executive Officer for Malaysia’s Stock Exchange, Bursa Malaysia, is expecting 40 new listings to be added next year. The listings include not just larger companies, but also small to medium-sized businesses. The inclusion of small to medium-sized businesses is made possible due to incentives such as new tax deductions.
Eligible companies can expect a tax deduction of up to RM1.5 million for eligible SMEs on the ACE ‘Access, Certainty, Efficiency’ or LEAP Market which are the listing platforms of Bursa Malaysia. The LEAP Market is an alternative market to provide SMEs and other companies with greater fund-raising access and visibility via the capital market to raise funds. It brings together potential SMEs and companies, intermediaries and qualified sophisticated investors onto a single platform to create a conducive marketplace for fund-raising.
The tax deductions will be available in the 2020 market. Such incentives, combined with the expectation that global uncertainties in the marketplace will be resolved, has fueled the expectation for the large number of listings expected. These announcements were made at a one-day forum called, “Listing on Bursa: Unlock Your Business Potential through Listing.” The event was jointly organised by Malaysian Investment Development Authority (MIDA) and Bursa Malaysia.
A Great Year for Bursa Malaysia
Bursa Malaysia has already surpassed the number of listings they received in 2018. They received 21 listings in 2018, and with the year not over yet, have already received 28 listings in 2019. Bursa Malaysia already boasts over 900 listings, and is one of the largest stock exchanges in the ASEAN in terms of listings. The listed companies span across 60 different economic activities, and range from small business to very large.
With the global economy likely to improve next year, this growth is expected to continue, with even more listings in 2020. Combined with the tax incentives scheduled to start at 2020, this makes the projection of 40 listings a very reasonable expectation.
Bursa Malaysia’s CEO wants to encourage more Malaysian companies to come forward and be listed, as 2020 is expected to be advantageous for growth.
The Advantages of Listing With Bursa Malaysia
Bursa Malaysia wants more local businesses to list for the health of the local economy. The stock exchange allows people to invest in local companies, and provides a real chance for promising companies to grow and develop.
Being able to invest in local companies is beneficial to both investors and the companies, helping to pave the way to financial growth for all of Malaysia. Private sector-led domestic investment growth is the key to financial growth and prosperity in the country, and the government is eager to support businesses who list. The tax incentive alone is advantageous enough to make listing worthwhile for even small companies.
While the future can’t be told for certain, it looks like 2020 will be another banner year for Bursa Malaysia. Their listings have been trending upwards for the last two years, recovering well from a rocky year in 2017 when global uncertainties made growth difficult. With these uncertainties gone, there’s no reason 2020 can’t be the best year Bursa Malaysia has ever seen.