Malaysia and Singapore will set up a stock market trading link between Bursa Malaysia (BM) and Singapore Exchange (SGX) by the end of this year, regulators from both countries announced on Tuesday (Feb 6).

The trading link will allow investors to trade and settle shares listed on each other’s stock market more conveniently and at lower costs.

It will also cover post-trade arrangements like the clearing and settlement of the stocks traded.

Echoing similar sentiment, Securities Commission Malaysia chairman Ranjit Ajit Singh said the trading link is a key step to encouraging ASEAN investors to invest in the region.

“The ease of accessibility for investors will contribute towards greater vibrancy in our markets. Once operationalised, this pilot initiative can form the basis for future connectivity among ASEAN markets,” he said.

“Singapore investors … need to know that the companies are well governed, that we’re able to put our money in those companies, and we will get the returns promised and the dividends, and that the regulator will be able to enforce the listing rules and the Companies Act strictly with no gaps.”

Mr Jimmy Ho, president of the Society of Remisiers, pointed out that more details like custodian fees, the settlement of shares, as well as how the trading link will be operationalised are not laid out yet, but hopes that it will be an improvement from previous practices.

Read more at Channel News Asia.

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