KUALA LUMPUR: The Securities Commission (SC) is engaging with the Finance Ministry (MoF) to review its fee structure after it posted a deficit in 2023. 

Securities Commission (SC) chairman Datuk Seri Dr Awang Adek Hussin said the regulatory body recorded a deficit last year due to a decline in the average daily trading value (ADV) at RM2.2 billion a day in 2023. 

The regulatory body posted a deficit after tax of RM71.3 million in 2023. Total comprehensive loss for the year stood at RM107.86 million. 

"We are engaging the MoF to see how we can review our fee structure. It has not been changed for 30 years and (it) is too small. 

"For example, investment banks pay RM2000 (of fee) for  a whole year. I think this is because we wanted to develop the market back then and we were not so concerned about charging fees. 

"Our stock market was also doing well in the 90's so enough revenue was generated from duty. Money was never a concern to us," he told a media briefing in conjunction with the release of its annual report. 

Awang Adek noted the SC gained 90 per cent of its revenue from duties imposed on trading in the market. The revenue is shared with Bursa Malaysia, with Bursa Malaysia receiving a larger share. 

"When the value is low, we do not get enough revenue. Even during Covid years, we did well because the value of trading was relatively high so we did not have that problem with the deficit. 

"Last year's value was so low and we need to generate an ADV of between  RM2.5-RM2.6 billion to breakeven," he said. 

Awang Adek however said the deficit is not expected to continue as the ADV stood at RM3 billion a day for the first three months of this year. 

"If this continues for the rest of the year, there will be a healthy surplus. However we would not know if this will change because it has only been three months. 

"It is not something we are overly worried about but it is something we recognised that we needed to do something about," he added. 

https://www.nst.com.my/business/corporate/2024/03/1030156/sc-talking-mof-fee-structure-review-after-posting-deficit-2023