Waiver / Rebate on Listing-Related Fees under Pemerkasa
23 March 2021
On 17 March 2021, the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, launched the
Strategic Programme to Empower the People and Economy (‘
Pemerkasa’), an economic recovery programme valued at RM20 billion.
Among the initiatives announced under the Pemerkasa Programme are the granting of a 12-month exemption on listing-related fees for companies that apply for listing on the Main, ACE or LEAP markets of Bursa Malaysia, and a rebate on listing fees for 2021 for listed companies that report losses based on their annual reports.
On 19 March 2021, the Securities Commission Malaysia and Bursa Malaysia Berhad issued a
joint media release (‘
media release’) providing further details on the measures announced during the launch of Pemerkasa.
The 12-month waiver of listing-related fees
For a period of 12 months commencing 17 March 2021:
- A 100% waiver on processing fee, including prospectus registration fee for companies seeking to list on the ACE and LEAP Market, as well as for companies with less than RM500 million market capitalisation seeking a listing on the Main Market;
- A 100% waiver on initial fees and annual listing fee for companies with less than RM500 million market capitalisation;
- A 50% waiver on initial fee and annual listing fee for companies of RM500 million market capitalisation and above.
Loss-making companies
A 50% rebate of annual listing fees for the year 2021 for listed issuers that meet the following criteria:
- Market capitalisation below RM500 million as of 31 December 2020; and
- Report financial losses as measured by Group loss after tax in their quarterly report for a quarter ended on any date between 1 February to 30 April 2021 (inclusive) notwithstanding the date of submission of the same.
Companies that are distressed or have inadequate operations and cash companies
A waiver on processing, perusal and listing fees on regularisation proposals received by 31 December 2021:
- From listed issuers that have been classified as a PN17/GN3 company;
- Cash company as set out in paragraph 8.03 of the Main Market Listing Requirements or rule 8.03 of the ACE Market Listing Requirements;
- Companies with an inadequate level of operations as set out in paragraph 8.03A of the Main Market Listing Requirements or rule 8.03A of the ACE Market Listing Requirements.
Comments
Three points are to be noted in relation to the Media Release.
First, the measures announced in the Media Release differ in several significant respects from the announcements made by the Prime Minister during the launch of the Pemerkasa. Needless to say, companies seeking a listing on the Main, ACE or LEAP markets of Bursa Malaysia and listed issuers seeking the applicable waivers or rebates should be guided by the conditions set out in the Media Release.
Second, the waiver of processing, perusal and listing fees for regularisation proposals submitted by financially distressed companies, cash companies and companies with inadequate level of operations was not announced as part of Pemerkasa but will nevertheless be welcomed by affected issuers.
Third, it appears rather anomalous that cash companies should be granted a waiver of processing, perusal and listing fees on their regularisation proposals as these companies are neither financially distressed nor loss-making; rather they have cash but not a sufficient level of business operations to justify the continued listing on the relevant Market of Bursa Malaysia.
Alert by Phua Pao Yii (Partner) of the Corporate Division of Skrine.