Kuala Lumpur, 26 March 2020 – Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) today announced a new set of relief measures targeted to a broader group of participants within the capital market. These measures are designed to help lessen the financial burden and provide greater flexibility in navigating the challenging period posed by the COVID-19 pandemic. 

The profound impact of COVID-19 is being felt across all industries. Bursa Malaysia is conscious of these challenges and has sought to help those affected in the face of an uncertain economic situation.

Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia said, “The COVID-19 outbreak has quickly evolved from being a public health issue to being a source of serious economic challenge. We are making concerted efforts to ease the burden and help companies and market participants directly impacted by the crisis.”

Details of the relief measures are as follows: 

i. Rebate of 50% of the annual listing fees for the year 2020 for Listed Issuers that: 

• Have a market capitalisation below RM500 million as at 31 December 2019; and 
• Report financial losses as measured by Group loss after tax in their quarterly report for a quarter ended on any date between 1 April 2020 to 30 June 2020 (inclusive) notwithstanding the date of the submission of the same. 

ii. Extension of time to submit regularisation plan for PN17/GN3 and 8.03A Listed Issuers

For listed issuers that are in financial distress according to Practice Note 17/Guidance Note 3 (“PN17/GN3 Listed Issuers”) or do not have an adequate level of operations as set out in paragraph/Rule 8.03A of the Listing Requirements (“8.03A Listed Issuers”), the Exchange will be extending the timeframe for submission of the regularisation plan from the existing 12 months to 24 months from the date they first announce they are PN17/GN3 Listed Issuers or 8.03A Listed Issuers. This applies to listed issuers that trigger the criteria in 2019 and 2020.

iii. Automatic 1-month extension to submit financial statements

Listed issuers are now granted an automatic 1-month extension for issuance of quarterly and annual reports for the Main and ACE Markets, as well as semi-annual and annual audited financial statements for the LEAP Market, that are due on 31 March 2020 and 30 April 2020. Notwithstanding the 1-month extension, listed issuers are reminded to comply with their continuing disclosure obligations under the Listing Requirements including the obligation to make immediate announcements of any material information to ensure that shareholders and investors continue to receive information in a timely manner.

iv. Greater flexibility for brokers to manage margin accounts

The Exchange will give more flexibility and discretion to brokers by removing the requirement to automatically liquidate their client’s margin account if the equity in the margin account falls below 130% of the outstanding balance. Brokers will also not be required to make additional margin calls or impose haircuts on any collateral and securities purchased and carried in margin accounts due to an unusually volatile market.

v. Expanding the list of collaterals for purposes of margin financing

The Exchange will allow brokers to accept other collaterals, such as bonds, collective investment schemes, unit trusts, gold and immovable properties for purposes of maintaining their clients’ margin account if such collaterals are valued as per the broker’s credit policy.

vi. Shortened counter service hours by market participants following the Movement Control Order (“MCO”)

To safeguard the wellbeing of investors and employees of market participants, Bursa Malaysia strongly encourages all market participants which provide counter services to customers to limit their operational hours from 10.00 a.m. to 3.00 p.m. during the MCO period.

vii. Extension of time for submission of CDS transaction forms to Bursa Malaysia

All Authorised Depository Agents (“ADAs”) are now given an extension of time for the submission of specified physical CDS transaction forms to Bursa Malaysia Depository Sdn.Bhd. The extension of time provided for the submission of physical CDS transaction forms are as follows:

• Transactions performed between 2 March 2020 to 31 March 2020 are granted an extension of time for submission by 30 April 2020; and
• Transactions performed between 1 April 2020 to 30 April 2020 are granted an extension of time for submission by 29 May 2020.

“We will continue to engage with capital market participants to ensure our endeavours are effective. We aim to aid market participants to weather the sudden changes in their operating conditions or cashflows while supporting the nation’s efforts to mitigate the economic and societal impact of the COVID-19 pandemic,” concluded Datuk Umar. These measures complement the broader relief effort under the Economic Stimulus Package 2020 (“ESP 2020”) announced by the Government on 27 February 2020. Under the ESP 2020 announced earlier, both the SC and Bursa Malaysia have agreed to waive all listing-related fees for twelve months, to companies seeking a listing on the ACE and LEAP Markets, as well as for companies on the Main Market, with a market capitalisation of less than RM500 million. These measures were introduced to provide companies access to a cost-effective source of funding.

Following the latest announcement on the of the extension of MCO made by YAB Prime Minister Tan Sri Muhyiddin Yassin on 25 March 2020, Bursa Malaysia would like to reiterate that our markets will be operational during this period. The Exchange will continue to work closely with the SC and other relevant stakeholders to ensure the orderly operations and reliable access to the Malaysian capital market