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.