All 60 licensed stockbroking companies in operation reported no problems in making the transition to the new brokerage rates.
Three stockbroking companies reported having to make manual calculations for some contracts - contracts of below RM1 and contracts of above RM100,000. For the three stockbroking companies, these contracts, however, are in small volumes.
The new brokerage rates are carried on http://www.klse.com.my/website/news/pr/2000/20000904.htm
Brokerage fee for direct business transactions has already been made fully negotiable since September 1998.
The new brokerage rates, as part of the reduction in transaction cost, is expected to benefit the Malaysian securities industry and investors at the KLSE. The reduction in transaction cost is also in line with the government and industry regulators' commitment to liberalise the capital market, which is expected to improve liquidity and efficient price discovery of the stockmarket. These factors will contribute to make KLSE and Malaysia a more attractive investment destination for all investors.
