KLSE's Deputy President 1 Encik Md Nor Ahmad said the reduction in transaction cost would make the industry more competitive in order to benefit both local and foreign investors.
"Internationally, and especially around this region, more and more securities market are reviewing transaction cost in working towards the objective of offering services at lower fees. Of late, it has often been mentioned that the existing cost of transaction in the Malaysian securities market is relatively higher than regional markets.
"Therefore, to remain competitive, the Malaysian securities market, cannot afford to price itself out of the system," he said. Md Nor was speaking at the KLSE briefing on the reduction in transaction cost to the media.
Md Nor also said transaction cost is not the only factor in enhancing the overall competitiveness of the Malaysian securities market. Measures to strengthen the industry implemented after the financial crisis include: strengthening the financial position of stockbroking companies; greater compliance to prudential standards and improve vigilance in risk management.
"We believe all these efforts will collectively contribute in further enhancing the services and business capabilities of the Malaysian securities industry in line with international standards," he added.
KLSE's briefing to the media provided a background on: components of the transaction cost; cost savings by investors with the reduction in transaction cost and reduction in regulators cost to the industry.
For the Malaysian securities market and economy, the reduction in transaction cost is a positive development indicating a firm commitment to enhance and improve the securities industry.
The reduction in transaction cost is also in line with the government and industry regulators' comm itment to liberalise the capital market, which is expected to improve liquidity and efficient price discovery. These factors will contribute to make KLSE and Malaysia a more attractive investment destination for all investors.
