04 January 2022

Transaction Costs in Trading of Shares Listed on Bursa Malaysia (Effective January 2022)

In light of the Budget 2022 announced by the Minister of Finance, please take note on the following changes with effect from 1st Jan 2022:
  1. Increased stamp duty rate on contract notes from 0.10% to 0.15%
  2. Increased capping amount on stamp duty charge from RM200 to RM1,000
  3. Exemption of service tax on brokerage fee related to trading of shares listed on Bursa Malaysia

However, it's not as straightforward as this... Huh? Let's explore in detail below here...

𝐓𝐡𝐞 𝐬𝐭𝐚𝐦𝐩 𝐝𝐮𝐭𝐲 𝐟𝐞𝐞𝐬 𝐚𝐧𝐝 𝐦𝐚𝐱𝐢𝐦𝐮𝐦 𝐚𝐦𝐨𝐮𝐧𝐭 𝐩𝐞𝐫 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐰𝐢𝐥𝐥 𝐧𝐨𝐰 𝐯𝐚𝐫𝐲 𝐝𝐞𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐨𝐧 𝐭𝐡𝐞 𝐭𝐲𝐩𝐞 𝐨𝐟 𝐬𝐭𝐨𝐜𝐤 𝐭𝐫𝐚𝐝𝐞𝐝. So, it actually depends on what type of stocks are traded as per the table below:

And, take note that there is this EXEMPTION of stamp duty for Exchanged Traded Fund (ETF) until 2025. So, it's a plus point for investors to invest in ETFs listed on Bursa Malaysia.

Of course, on top of brokerage and stamp duty, investors are subjected to a clearing fee (which was the income of Bursa Malaysia). The clearing fee remained unchanged at 0.03% of the transaction value with a maximum of RM1000.00 per contract.

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