KUALA LUMPUR (Feb 5): The Securities Commission Malaysia’s (SC) new 1.5% revenue-based levy on brokers, which took effect on Jan 1, 2026, is imposed only on gross revenue derived from regulated capital market activities and excludes other business operations and group-level income, according to the Ministry of Finance (MOF). In a written parliamentary reply on Thursday, the MOF said the approach ensures the annual fee is directly linked to activities regulated by the SC, with the amount payable proportionate to the scale of regulated activities and the level of supervisory effort required. The MOF also clarified that the annual fee does not include proprietary trading transactions, margin financing interest income, interest from money market placements, or dividends and gains from proprietary investments, as these do not arise directly from regulated capital market activities. In response to industry concerns, the MOF said the SC has announced a three-year transition period from 2026 to 2028, during which a 50% reduction will be applied to the variable annual fee. A 20% reduction will also be granted for certain transaction fees, particularly those related to capital market products and fundraising activities, it noted.

Source: The Edge Markets February 05, 2026 14:18 UTC