Executive Chairman of Kuala Lumpur Stock Exchange Dato' Mohd Azlan Hashim said the budget will greatly contribute to the successful implementation of key measures and policies to enhance the Malaysian capital market announced in March and June 2003.
"The National Budget 2004 offers comprehensive and pragmatic measures as well as a combination of strategies to ensure the continued growth and progress of the Malaysian capital market and securities industry.
"The expected overall impact of this budget is that it provides tremendous impetus for the Malaysian capital market to move up the value chain by offering a wider range and more competitive services and products to international and domestic investors," he said.
Mohd Azlan said a key measure in the National Budget 2004 significant for the enhancement of the Malaysian capital market is for the government to encourage large government related entities to be listed on the KLSE
"The move to divest government assets including listing more government related entities will unlock the value of these assets to a broader base of stakeholders, including investors," Mohd Azlan said.
Mohd Azlan added the introduction of a more comprehensive tax treatment and tax deductions on expenses incurred in the issuance of Islamic securities will expand the range of Islamic capital market and investment products offered by Malaysia.
"The tax rebate to encourage companies and financial institutions practising Syariah investments in the Labuan International Offshore Financial Centre (IOFC) will enhance the position of the Labuan IOFC as an international Islamic financing and fund raising.
"The Labuan International Financial Exchange (LFX) will certainly benefit by capitalising on the move to promote investor participation in the multi currency and Islamic financing products and services offered by the exchange," Mohd Azlan said.
