Malaysia puts heat on proposed SGX-Bursa link

Mahathir said the link will be reviewed.

Malaysian prime minister Mahathir Mohamad told the press after a parliament meeting that the proposed trading link between Bursa Malaysia (BM) and the Singapore Exchange (SGX) will be reviewed.

The Monetary Authority of Singapore (MAS) has asked the Securities Commission Malaysia (SC) to clarify its position on the planned stock market trading link between Bursa Malaysia and Singapore Exchange, and will await the SC’s update on the matter.

SGX also notes MAS’ comments and awaits further clarity on the matter.

The trading link will allow investors to trade and settle shares listed on each other’s stock market. Besides trading, the link will also cover post-trade arrangements like the clearing and settlement of the stocks traded.

In line with this, MAS and SC will form cross-border supervisory and enforcement arrangements operationalise the bilateral link.

Analysts said the linking of the BM and SGX is likely to boost securities average trading volume (SADV), whilst the two exchanges previously said the link will bring "greater vibrancy" to their markets.

The link between the two exchanges is not the only project that has been subject to Mahathir's scrutiny. Last week, he said that Malaysia will drop the Kuala Lumpur-Singapore High Speed Rail (HSR) project, prompting Singapore to ask for clarification.