The Securities Commission Malaysia (SC) and SME Corporation Malaysia (SME Corp. Malaysia) have formalized their commitment to facilitate increased access to capital market financing for SMEs by signing a Memorandum of Understanding (MoU).
This three-year MoU lays the foundation for collaborative efforts aimed at nurturing a robust pipeline of SMEs prepared for the capital market. It also focuses on enhancing their awareness and readiness concerning sustainability and corporate governance.
As part of the MoU, both the SC and SME Corp. Malaysia have set ambitious goals. They aim to develop approximately 200 capital market-ready SMEs by 2026 and increase the familiarity of 300 SMEs with sustainability disclosures and best corporate governance practices.
Dato’ Seri Dr. Awang Adek Hussin, chairman of the SC, said that this MoU represents a significant stride towards supporting the growth and resilience of MSMEs, a pivotal driver of economic expansion.
He highlighted the alignment of this initiative with the vision of fostering a vibrant and robust capital market that caters not only to large corporations but also to smaller enterprises. In 2022, MSMEs contributed around 38% of Malaysia’s GDP and accounted for 48% of total employment.
Rizal Nainy, CEO of SME Corp. Malaysia, expressed the commitment of both organizations to ensure the competitiveness and vibrancy of the capital market while ensuring its accessibility to MSMEs in Malaysia.
He stressed that this collaboration would pave the way for a more vibrant and competitive capital market, with SME Corp. Malaysia playing a key role in advancing the sustainability agenda for MSMEs.
In addition to their primary goals, the MoU also outlines plans for joint developmental initiatives. These initiatives will focus on strengthening market insights and data analytics related to MSMEs’ access to the capital market and expanding the capital market funding opportunities available to MSMEs.
