The Malaysian Investment Banking Association (“MIBA”) lauds the Ministry of Finance’s (“MoF”) decision to reinstate the stamp duty cap on contract notes for the trading of listed shares on the local stock exchange. The decision recognizes the need for a higher source of revenue for the Government while balancing and ensuring that the local stock market remains competitive and vibrant.
The MoF had on 30 December 2021 reinstated the stamp duty cap for trading of shares at RM1,000 per contract note, with a rate of 0.15 per cent. Stamp duty amounts exceeding RM1,000 would be remitted and is applicable for all contract notes from Jan 1 to Dec 31, 2026. The proposal to increase the stamp duty rate was among the several initiatives announced by the Government during the tabling of the budget and to impose a fair tax treatment on the public.
MIBA would like to thank the MoF for this moderated approach, taking into consideration the industry’s feedback over the plan to remove the stamp duty cap and commends its agility and responsiveness in addressing the need to balance tax collection and attractiveness of our stock market.
MIBA will continue to support the Government’s effort towards ensuring the resilience and robustness of the Malaysian capital markets and economy.