Malaysia slackens listing policies to woo investors

Malaysia slackens listing policies to woo investors

Agence France-Presse, Kuala Lumpur

Malaysia's securities watchdog Friday relaxed listing policies
to allow foreign firms operating here and local companies with
businesses abroad to float in a bid to woo investors.

The Securities Commission said the move was a "major
liberalization" as it opened doors for foreign-incorporated firms
controlled by foreigners but operating locally to list on the
Kuala Lumpur Stock Exchange (KLSE).

The revised policy also allows Malaysian companies that are
successful overseas to further expand their operations by
accessing capital back home, said chairman Ali Abdul Kadir.

Foreign-incorporated firms owned by Malaysians with
substantial operations either locally or abroad are also eligible
for listing.

"This is in recognition for Malaysians who have made good
overseas ... regardless of whether they have been incorporated
locally or abroad," Ali said in a statement.

"We should be proud of their success and the Malaysian capital
market should be open to them to make them grow stronger."

Ali said the liberalization was in line with proposals under a
capital market blueprint to increase the breadth of listings on
the KLSE.

"We want KLSE to retain its standing as a premium market," he
said.

"The listing of these new types of companies will increase the
diversity and quality of companies listed on the KLSE and also
expand the range of investment opportunities for investors."

Foreign corporations can only list on the KLSE main board and
they must be incorporated in jurisdictions with comparable
corporate laws and enforcement to ensure integrity and a level
playing field, he said.

"Foreign companies applying for listing on the KLSE must
demonstrate that their listing will benefit Malaysia," Ali said.

"In a situation where such benefit may not be so tangible, the
company should then provide a steady income stream for its
Malaysian shareholders through dividends."

The companies must also seek approval from the central bank
where applicable for the use of proceeds from the share issue.

Prior to this, only Malaysian-incorporated firms either
controlled by locals or foreigners but with the bulk of their
operations in the country were allowed to seek a listing.