Malaysia and Singapore to set up stock market trading link

The Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia (SC) and will work together to facilitate the establishment of a stock market trading link between Bursa Malaysia (BM) and Singapore Exchange (SGX) by the end of this year. The trading link will allow investors to trade and settle shares listed on each other's stock market in a more convenient and cost efficient manner. Retail investors notably will benefit from such a link.

This initiative follows from the ongoing efforts of the ASEAN Capital Markets Forum (ACMF) to deepen financial connectivity across the region's capital markets. The bilateral link between BM and SGX will extend beyond trading to cover post-trade arrangements like the clearing and settlement of the stocks traded. In relation to this strategic initiative, MAS and SC will set up cross-border supervisory and enforcement arrangements, and work together with the two exchanges to operationalise the link.

Tan Sri Dato' Seri Ranjit Ajit Singh, SC Malaysia Chairman and also ACMF chairman, said: "The establishment of this trading link is an important step towards encouraging ASEAN investors to invest in ASEAN. The ease of accessibility for investors will contribute towards greater vibrancy in our markets. Once operationalised, this pilot initiative can form the basis for future connectivity among ASEAN markets."