MALAYSIA Trends and Developments Contributed by: Dilys Tan, Adnan Sundra & Low
The Year in Review and Outlook Malaysia’s capital market increased in size to MYR3.8 trillion in 2023 (compared to MYR3.6 trillion in 2022), largely driven by broad-based growth in total Bursa Malaysia market capitali - sation, bonds and outstanding sukuk. Funds raised in the capital market in 2023 totalled MYR127.7 billion (compared to MYR179.4 bil - lion in 2022). Total issuances in corporate bonds and the sukuk market reached MYR118.3 bil - lion in 2023 (compared to MYR153.3 billion in 2022). This difference was due to an increase in refinancing demand in 2022, pursuant to the Malaysian government’s introduction of various relief programmes intended to assist issuers and intermediaries in their post-COVID-19 pandemic recovery. In the third quarter of 2024, MYR49.57 billion of corporate bonds and sukuk was issued – an increase of 16.88% from the second quarter of 2024. The Malaysian securitisation market is still slug - gish in growth (compared to other capital market products), with only a few issuances of ABS a year. In 2023, there were at least two issuances of ABS; up to the third quarter of 2024, there had only been at least one issuance of ABS. The market still sees more real property ABS and loan receivables ABS being issued than any other types of ABS.
period of the securitisation transaction, and shall constitute the gross income (or be allowed as a deduction, as the case may be) of the origina - tor in the basis period for a year of assessment that relates to the period of the securitisation transaction. Notwithstanding the foregoing, for a property developer originator where any stock in trade in respect of such property development business is disposed of by the originator pursuant to the securitisation transaction, and where there is a call option for the originator to buy back such stock in trade, the proceeds, gains or losses from such disposal shall constitute the gross income (or be allowed as a deduction, as the case may be) of the originator in any basis period for a year of assessment in which the call option expires. The Income Tax Leasing Regulations 1986 were also revised by the Income Tax Leasing (Amend - ment) Regulations 2014 to exclude lease trans - actions in relation to a securitisation transaction authorised or approved by the SC on or after 1 January 2013.
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