The Securities Commission Malaysia has signed a Memorandum of Understanding with SME Corporation Malaysia to facilitate greater access to capital market financing for micro, small and medium enterprises (MSMEs).
The three-year MoU paves the way for mutual cooperation in building a strong pipeline of capital market-ready MSMEs, which would also include enhancing their sustainability and corporate governance awareness and readiness.
Under the MoU, the SC and SME Corp. Malaysia aim to create about 200 capital market-ready MSMEs by 2026 and to strengthen the familiarity of 300 MSMEs with sustainability disclosures and corporate governance best practices.
The SC Chairman Dato’ Seri Dr. Awang Adek Hussin said “This MoU aligns with our vision to foster a vibrant and resilient capital market that serves not only large corporations, but also the smaller enterprises’. MSMEs are an integral part of the economy, contributing about 38% of Malaysia’s GDP and 48% of total employment in 2022.
Commenting on the MoU, SME Corp. Malaysia Chief Executive Officer (CEO) Rizal Nainy said, “Both SME Corp. Malaysia and the SC are committed to ensuring that the capital market is competitive and vibrant, while remaining accessible to MSMEs in Malaysia.”
In addition, both parties also agreed to embark on several joint developmental initiatives to strengthen market insights and data analytics on MSME access to the capital market and to expand the capital market funding pool for MSMEs. -- Business Today
