The Securities Commission is finalising a licensing framework for cash trust schemes to strengthen oversight and protect investors following recent defaults.

KUALA LUMPUR: The Securities Commission Malaysia (SC) is finalising a licensing framework for cash trust schemes that invest in capital market products.

The Ministry of Finance (MOF) confirmed the move in a written parliamentary reply, stating the SC will take firm action to ensure legal compliance and safeguard investors.

The ministry was responding to a query from Khoo Poay Tiong regarding the establishment of a special task force to investigate defaults by cash trust scheme companies.

MOF clarified that trust companies offering such schemes are already registered with the Companies Commission of Malaysia under the Trust Companies Act 1949.

They are also subject to the provisions of the Trustee Act 1949.

Separately, MOF replied to another question from Tan Sri Muhyiddin Yassin concerning new taxes.

The ministry stated the government has no plans to introduce any new taxes in 2026.

Instead, the government’s focus will be on strengthening existing tax policies and improving compliance.

For the upcoming year, the government will complete refunds for the 2023 tax assessment year in the first quarter.

It will then ensure full settlement of refunds for the 2024 assessment year before the end of 2026.

 The Sun Malaysia