The Securities Commission Malaysia (SC) has signed a Memorandum of Understanding (MoU) with Khazanah Nasional Berhad, leveraging Khazanah’s Dana Impak Fund to enhance access to funding and capital market familiarity for Malaysian mid-tier companies (MTCs), aimed at driving their growth and expansion.
The MoU aligns with the SC’s ‘Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)’ (MSME and MTC Roadmap). SC Chairman Dato’ Mohammad Faiz Azmi praised Khazanah’s commitment to fostering MTC growth. “We appreciate Khazanah’s support for the MSME and MTC Roadmap and the SC’s long-term goal to create a more inclusive and holistic capital market fundraising ecosystem,” he said.
“MTCs are vital contributors to Malaysia’s economy, but they are often referred to as the ‘missing middle’ due to the challenges they face in securing financing for growth. This MoU will address these challenges, ensuring sustainable growth and resilience for these businesses,” added Mohammad Faiz.
Although MTCs represent less than 2% of firms in Malaysia, they contribute 36% of the country’s GDP and 16% of employment, making them a crucial part of the economy and a key segment for capital market engagement.
Khazanah Managing Director, Dato’ Amirul Feisal Wan Zahir, emphasiz\sed the fund’s dedication to supporting MTCs. “Through Dana Impak, a key pillar under our Advancing Malaysia strategy, we are committed to empowering Malaysian companies by providing the funding they need to thrive.
“We have earmarked RM500 million to support high-potential MTCs via private equity and private credit funds, ensuring greater access to capital.”
The MoU will facilitate mutual cooperation between SC and Khazanah, focusing on initiatives such as:
- Fundraising incubation for 60-100 MTCs to enhance their readiness for capital market participation.
- Specialised capacity-building programmes to raise MTC competitiveness and innovation.
- Increased MTC-focused investments to stimulate growth in this sector.
Additionally, Khazanah will collaborate with key partners, including the SC, to implement capacity-building programmes aimed at boosting productivity and unlocking new opportunities in business, innovation, and funding. This includes market-based financing solutions and programmes such as the SC’s Elevate initiative, which aims to upskill selected MTCs in fundraising and innovation.
These efforts are aligned with the goals of the MSME and MTC Roadmap and the GEAR-uP programme, creating a robust pipeline of capital market-ready MTCs.
