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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