JOHOR BAHRU, Aug 5 — The government is committed to reducing the current board lot size for trading to enable investors to tap into fractional trading on Bursa Malaysia before year-end.
Deputy Finance Minister Datuk Seri Ahmad Maslan said the initiative will make retail investors’ access to blue chip stocks easier and more efficient, thus improving market prospects.
“After this, retail investors would not need to buy one lot or 100 units, they can start buying one or two units or RM50 (worth of units), not necessarily thousands of ringgit (worth of shares).
“There will be more retail investors out there who can afford to buy shares…and I believe this will boost the Malaysian capital market,” he told a press conference after officiating the Bursa Marketplace Fair 2023 organised by Bursa Malaysia here today.
Also present was Bursa Malaysia Bhd’s chairman Tan Sri Abdul Wahid Omar.
On July 27, Prime Minister Datuk Seri Anwar Ibrahim announced measures that would improve the stock market’s vibrancy and reduce market friction, making investments affordable by reducing the current board lot size for trading on Bursa Malaysia and enabling fractional share trading by investors through stock brokers.
Meanwhile, commenting on Bursa Marketplace Fair, Ahmad said the programme was part of efforts to empower the Madani Economy by making the stock market more inclusive, enabling more Malaysians to participate in the stock market.
On the same note, Abdul Wahid said individual or retail investors account for as much as 28 per cent of the total average daily trading value as of the end of July this year.
“We have around 1.4 million active investors, of which 191,000 are from Johor.
“Last year, 13,800 new accounts were opened by retail investors, accounting for 14 per cent of the 99,600 accounts opened nationwide…Although there is no set target number for this year, we hope it will continue to increase,” he said.
