In a significant shift, Malaysian businesses are increasingly opting to list on Bursa Malaysia rather than seeking foreign exchanges for their initial public offerings (IPOs). The driving force behind this trend? Targeted exemptions on Capital Gains Tax (CGT) for approved IPOs.
Traditionally, startups and established companies alike aspired to global recognition by listing on prestigious exchanges like the New York Stock Exchange or London Stock Exchange. However, recent tax incentives have sparked a reevaluation of this strategy.
Malaysia’s Bursa sees surges in local IPOs
The Malaysian Aviation Commission (Mavcom) confirmed that six airlines have received approval to go public locally. Among them are well-known carriers like Firefly, Batik Air, and AirAsia. The allure of Bursa Malaysia lies not only in its homegrown appeal but also in the financial advantages it offers.
AirAsia Aviation Group (AAG) CEO, Bo Lingam, stated that AirAsia would commence flights from Subang Airport starting August 30. The airline plans to operate two daily flights to Kota Kinabalu International Airport (BKI) and Kuching International Airport (KCH).
Batik Air Malaysia, another player in the aviation industry, will also take advantage of the local IPO scene. Their CEO, Datuk Chandran Rama Muthy, confirmed that the airline would focus on domestic destinations.
While Malaysia Airlines (MAS) continues to operate out of KLIA Terminal 1, the two foreign airlines set to join Bursa Malaysia have not been officially announced. However, rumors suggest that Scoot, a low-cost carrier under Singapore Airlines, has expressed interest in flying to Subang.
The Subang Airport Regeneration Plan (SARP) has revamped and expanded Subang Airport to accommodate more passengers and jet operations. Passenger capacity is expected to double from the current 1.5 million to three million, with a long-term goal of reaching eight million by 2030.
Leave a Reply
You must be logged in to post a comment.