Corporate/M&A
Launch of the Malaysia SDG Investor Map: Aligning Investments with Sustainable Development Goals
On 19 June 2023, the Ministry of Investment, Trade, and Industry (“MITI”), in partnership with the United Nations (UN) in Malaysia, officially launched the Malaysia SDG Investor Map (“the Map”). The Map, developed under the guidance of the United Nations Development Programme (“UNDP”) and with strong support from MITI and the Malaysian Investment Development Authority (“MIDA”), serves as an online market intelligence tool which aims to help private investors in identifying investment opportunities that align with and meet the requirements of the Sustainable Development Goals (“SDGs”).
The Map allows interested investors to explore investment opportunities that are environmentally sustainable and socially just by directing capital towards the SDG-aligned investments themes and business models, known as Investment Opportunity Areas (“IoAs”). In Malaysia, there are 15 IoAs across six sectors, including Technology and Communications, Healthcare, Renewable Resources and Alternative Energy, Financials, Food and Beverage and Infrastructure, which have significant potential for impactful development. Such investments would further contribute to the advancement of the SDGs
The Map provides investors with valuable information on investment opportunities that are environmentally sustainable and socially responsible. This helps address the gap where the abundance of liquidity in capital markets does not result in proportional investments due to investor risk aversion, which is often caused by uncertainty about whether investments align with the criteria of being planet-positive and socially responsible. Additionally, the Map offers market intelligence on the highlighted IoAs, providing data on the anticipated development impact and financial prospects of these investments.
The launch of the Map signifies Malaysia’s commitment to realising the SDGs by promoting and supporting investments in SDG-aligned sectors. It aligns with the strategic roadmap outlined in the Twelfth Malaysia Plan (2021-2025), emphasising long-term impact, sustainable growth, innovation and inclusivity.
The Map is accessible at both the UNDP SDG Investor Platform and MIDA’s website, and the press release issued by MITI regarding the Map can be accessed here.
Reduction of stamp duty rate for shares on Bursa and other measures to boost competitiveness
Prime Minister Datuk Seri Anwar Ibrahim has revealed a series of measures on 19 June 2023 to drive Malaysia’s economic growth and capital market competitiveness.
Firstly, the stamp duty rate for shares traded on Bursa Malaysia Securities Commission will be reduced from the current 0.15% to 0.1% of the contract value from July 2023 onwards. This reduction will be subject to a maximum limit of RM1,000 per contract.
Besides, the Ministry of Finance and the Securities Commission will look at policies to facilitate and attract the setting up of family offices in Malaysia to attract more financing support for small and medium-sized enterprises (“SMEs”) and the New Economy. The government will also promote corporate venturing by implementing facilitative tax and incentive policies to drive greater domestic direct investment. The Prime Minister also stated that the government will look at widening the definition of sophisticated investors, including angel investors.
In addition, the Prime Minister also announced the forthcoming reforms in 2023 by the capital market regulators, ie, Securities Commission and Bursa Malaysia to expedite the initial public offering (“IPO”) process and reduce time-to-market, ensuring the Malaysian stock market remains highly competitive.
More information can be viewed here.
