SC Malaysia Sets RM40 Billion Fundraising Goal for MSMEs and MTCs by 2028

SC Malaysia Sets RM40 Billion Fundraising Goal for MSMEs and MTCs by 2028

by May 23, 2024

The Securities Commission Malaysia (SC) has introduced a 5-year roadmap to enhance the capital market as a viable financing source for micro, small, and medium enterprises (MSMEs) and mid-tier companies (MTCs).

The “Catalysing MSME And MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)” was launched by Secretary General of Treasury Datuk Johan Mahmood Merican on behalf of Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan.

The SC targets a sevenfold increase in current fundraising levels, aiming for RM40 billion by 2028, representing a 46% compound annual growth rate (CAGR) over five years. In 2023, MSMEs and MTCs raised RM6.3 billion through the capital market.

MSMEs contribute 38.4% to Malaysia’s GDP and 48.2% to total employment, while MTCs account for 36% of GDP and 16% of the workforce.

Datuk Seri Amir Hamzah emphasised the economic significance of MSMEs and MTCs and announced new initiatives to support the roadmap’s implementation.

The roadmap aims to align with existing national policies such as the Madani economy framework and the 12th Malaysia Plan.

Supported by four ministries – Ministry of Finance, Ministry of Investment, Trade and Industry, Ministry of Economy, as well as Ministry of Entrepreneur and Cooperatives Development – the roadmap is based on five guiding principles and includes nine cross-cutting strategies and 36 key initiatives.

These initiatives focus on regulatory and product innovation, market infrastructure, and capacity building.

The World Bank Group provided technical advice for the roadmap.

Dato’ Seri Dr. Awang Adek Hussin

Dato’ Seri Dr. Awang Adek Hussin

SC Chairman, Dato’ Seri Dr. Awang Adek Hussin said,

“The roadmap employed a whole-of-nation approach with extensive industry engagements, workshops, studies and benchmarking. In this vein, we look forward to the successful implementation of the roadmap’s initiatives with our initial batch of key collaborators – SME Corp, MATRADE, CGC2 , CGC Digital and Cradle Fund.

 

This includes mobilising listing grants and guarantees, leveraging capital market touchpoints and boosting MSME and MTC readiness. The spillover benefits will be manifold, both to the capital market as well as to the country.”