The stock market, ringgit and FDI dilemma — Saleh Mohammed

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JUNE 21 — The reduction in stamp duty on share sales on Bursa Malaysia from 0.15 per cent to 0.10 per cent of contract value is a welcomed initiative to reduce the cost of...

JUNE 21 — The reduction in stamp duty on share sales on Bursa Malaysia from 0.15 per cent to 0.10 per cent of contract value is a welcomed initiative to reduce the cost of securities transactions. It will definitely make the stock market more competitive.

The reduction is good but stock market is a playground for the rich. We may attract foreign money as share prices are low now but once it goes up, there will be profit-taking and outflow starts again affecting the ringgit. Foreign investors tend to gain more. Again, stock market is influenced by sentiment.For the ringgit, it is expected to come under pressure against the US dollar in the near term due to less favourable external developments and pegging can be ruled out.

The writer opined that the ringgit is expected to come under pressure against the US dollar in the near term due to less favourable external developments and pegging can be ruled out. — Picture by Ahmad Zamzahuri Word of caution here is, when offering generous FDI incentives, bear in mind future investors will demand a similar degree of generosity.

The enactment of the Fiscal Responsibility Act should be the immediate priority as it has been delayed since last year. FRA will set the tone on reducing fiscal gap and debt burden, as well as improving the transparency and governance of fiscal policy.

 

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Little impact on stock market with reduction in stamp duty rate, says economistKUALA LUMPUR: Lowering the stamp duty rate for shares traded on Bursa Malaysia Securities, as announced by Prime Minister Datuk Seri Anwar Ibrahim, will have very little impact on the stock market as structural problems persist in listed companies, says an economist.
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The stock market, ringgit and FDI dilemma — Saleh MohammedJUNE 21 — The reduction in stamp duty on share sales on Bursa Malaysia from 0.15 per cent to 0.10 per cent of contract value is a welcomed initiative to reduce the cost of...
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