Malaysia and Singapore announced plans to set up a new stock market trading link by the end of 2018.
The Monetary Authority of Singapore and the Securities Commission Malaysia will work together to facilitate the establishment of a stock market trading link between Bursa Malaysia and Singapore Exchange by the end of this year, the central banks said in a joint statement on Tuesday.
This initiative will allow investors to trade and settle shares listed on each other's stock exchange in a more convenient and cost efficient manner.
The bilateral trading link will extend beyond trading to cover post-trade arrangements like the clearing and settlement of the stocks traded.
"The trading link will help lower trading costs for investors and encourage greater cross-border investments in the stocks listed on each other's exchanges. This will improve the liquidity of both our stock markets," Lee Boon Ngiap, Assistant Managing Director, MAS, said.
"I hope this initiative will in time expand to include the rest of the stock exchanges in ASEAN," Lee added.
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