KUALA LUMPUR, Malaysia (AP) — Malaysia and Singapore regulators say they will establish a link to connect their stock markets by the end of the year in a bid to cut trading costs and woo cross-border investments.
A joint statement Tuesday by the Monetary Authority of Singapore and the Securities Commission Malaysia said the "Malaysia-Singapore Connect" will allow investors to trade and settle shares listed on each other's stock markets in a more convenient and cost efficient way, benefiting retail investors.
Prime Minister Najib Razak told a capital market conference earlier Tuesday that the two exchanges are sophisticated and mature enough to set up a market corridor. He said the system will link the two markets with a combined market capitalization of $1.2 trillion and 1,600 publicly listed companies.