The government today unveiled new measures, including easing listing procedures for large firms, aimed at bolstering its ailing stock market and the slowing economy amid fears of war in Iraq.

However, analysts said the measures would make little difference while investors remained focussed o­n Iraq.

Among the 10 measures were new guidelines to facilitate listing of large firms, lowering stamp duty for stock trading, reducing processing of initial public offers (IPO) and cutting red tape for approvals.

Acting Prime Minister and Finance Minister Abdullah Ahmad Badawi said the measures were designed to "proactively manage the effects" of global uncertainties o­n the Malaysian economy and financial markets.

"These measures form part of the government's overall effort aimed at ensuring the continued growth of the Malaysian economy and an efficient, resilient and competitive capital market," he said in a statement.

The measures followed seven weeks of consecutive falls o­n the Kuala Lumpur Stock Exchange, which had slipped to its lowest level this year.

The stock exchange fell 1.71 percent Monday and dipped another 0.89 percent today to close at 619.22 points amid jitters over the looming war in Iraq, dealers said.

Cold comfort

Economists said the new measures offered cold comfort, with investors' sentiment seen remaining subdued until the Iraqi crisis is resolved.

"Geopolitical concerns are dampening confidence right now, so these measures are not going to make much difference," said Paul Schymyck, economist with Singapore-based IDEAglobal.

"The market will o­nly improve when the geopolitical outlook improves."

He said a fiscal package expected to be announced by the government next month to prop up the economy was likely to provide more cheer.

To encourage investor participation, Abdullah said the government would forego more than RM60 million in revenue a year and cap stamp duty at RM200 a contract from next Monday to lower transaction costs.

All board lot sizes would be standardised at 100 units by June to cut odd lot holdings and make purchases more affordable, he said.

To help large firms to raise capital, Abdullah said new guidelines to facilitate their listing would be introduced from April 1.

Cutting down bureaucracy

Firms with a minimum market capitalisation of RM250 million and a net profit of eight million in the latest financial year would be exempted from the three to five years profit record requirement. But they still have to show a five-year operating history.

Abdullah said the government would facilitate the merger of government-linked companies within common sectors to raise the presence of large premier companies o­n the stock exchange.

He said the processing time for IPOs would be cut to less than three months from six to eight months currently.

To cut bureaucracy, he said corporate proposals requiring approval from both the Securities Commission (SC) and the Foreign Investment Committee would now be processed just by the SC.

Abdullah said the government would set up a mechanism to enhance management performance in government-linked companies and to woo quality personnel to these firms.

Their performance would be measured yearly against pre-agreed key benchmarks and those who consistently meet or exceed the targets would be rewarded with an attractive share option scheme. AFP