Singapore, Malaysia to link up stock exchanges in 2 mths

Investors in Singapore and Malaysia will soon be able to buy shares traded across both nations directly without having to go through a foreign intermediary, the two countries stock exchange operators said on Friday.

Singapore, Apr 27, 2012 (ACN Newswire via COMTEX) - Singapore Exchange and Bursa Malaysia are on track for a link-up in June that will enable investors to trade shares listed on both exchanges through their local brokerage. Bursa Malaysia and Singapore Exchange will be connected first, with the Stock Exchange of Thailand added in August 2012.

ASEAN countries have long set a commitment to integrate their stock exchanges by 2015. A unified ASEAN Exchanges will have a combined US$2.1 trillion market capitalization from over 3,000 publicly-listed companies, allowing their capital markets to better compete with that of Hong Kong and Tokyo.

Speaking on behalf of ASEAN Exchanges, SGX Chief Executive Magnus Bocker said the start of the Singapore-Malaysia electronic trading link will mark the first key milestone to facilitate cross-border stock trading in Southeast Asia. "Through the trading link, investors in ASEAN will enjoy a new ease of access to a wider investment selection as well as tapping the region’s growth opportunities,’ he added.

Bursa Malaysia chief executive officer Datuk Tajuddin Atan said this was an affirmative step towards an integrated Asean capital market. Bringing down trade barriers will certainly provide more opportunities for our market players, especially multinational public listed companies, actively expanding their operations throughout ASEAN, he said.

The ASEAN Exchanges has always been Singapore’s dream to challenge rival Hong Kong. The Singaporean stock markets is Southeast Asia’s biggest with a market capitalization of US$665 billion, but is 4 times dwarfed by Hong Kong’s US$2,547 billion.

Philippines, Indonesia and Vietnam will join the system at 2013, while Myanmar, Laos and Cambodia will enter the link before 2015. The main exception is Brunei, whose economic growth and capital markets is the weakest in Southeast Asia and does not have a stock market.

Bursa Malaysia and Singapore Exchange

The ASEAN Exchanges comprised of:

  1. SGX, Singapore Exchange, Singapore
  2. Bursa Malaysia, formerly Kuala Lumpur Stock Exchange (KLSE), Malaysia
  3. Hanoi STC, Hanoi Stock Exchange & HOSE, Ho Chi Minh Stock Exchange, Vietnam
  4. IDX, Indonesia Stock Exchange, previously Jakarta Stock Exchange, Indonesia
  5. PSE, Philippine Stock Index, Philippines
  6. SET, Stock Exchange of Thailand, Thailand
  7. LSX, Lao Securities Exchange, Laos
  8. SECC, Securities and Exchange Commission of Cambodia, Cambodia
  9. MSEC, Myanmar Securities Exchange Centre, Myanmar

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