However Anwar, who is also finance minister, said this would be subject to a maximum cap of RM1,000 per contract.

This will take effect in July, he said at an event here this morning.

The prime minister said reducing the rate would help to lessen the cost of securities transactions and make the Malaysian stock market more competitive.

If the reduction leads to an increase in market liquidity, it will attract more domestic and foreign funds into the Malaysian stock market. “This will encourage small and medium enterprises (SMEs) to pursue initial public offerings (IPOs),” Anwar said.

He said the move would also make it easier for public listed companies to raise funds to expand their businesses and create more jobs.

“I am confident that this step will stimulate the market and enhance its attractiveness,” he added.

Anwar said reducing the stamp duty was among the measures the finance ministry and Securities Commission (SC) have identified to enhance the capital market.

Another strategy is to attract a larger pool of investors to support financing for SMEs and the new economy, he said.

One way to woo investors, Anwar said, is to drive domestic direct investment (DDI) through more conducive tax and incentive policies.

He said the SC and Bursa Malaysia would introduce reforms this year to make it easier and faster to list on the market.

This will be done by expediting the IPO process and reducing the time it takes to debut on the market. This will ensure Malaysia’s competitiveness and attractiveness.

Anwar said his government would do all that is needed to drive inclusive and sustainable growth as well as an open economy that respects free financial flow.

“To further promote domestic growth, the cabinet will accelerate the implementation of government projects and facilitate approvals for businesses such as applications for skilled expatriates,” he added.

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