Kuala Lumpur, Malaysia – The Securities Commission Malaysia (SC) and SME Corporation Malaysia (SME Corp) have partnered up, signing a Memorandum of Understanding (MoU) to create about 200 capital market ready micro, small and medium enterprises (MSMEs) by 2026.
The three-year MoU paves the way for mutual cooperation in building a strong pipeline of capital market-ready MSMEs, which also includes enhancing their sustainability and corporate governance awareness and readiness.
Under the MoU, both the SC and SME Corp. Malaysia also agreed to embark on several joint developmental initiatives to strengthen market insights and data analytics on MSME access to the capital market, as well as expanding the capital market funding pool for MSMEs.
The MoU also looks to strengthen the familiarity of 300 MSMEs with sustainability disclosures and corporate governance best practices.
Commenting on the MoU, SC chairman Datuk 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 per cent of total employment in 2022.”
Meanwhile, Rizal Nainy, chief executive officer of SME Corp. Malaysia, mentioned, “Both SME Corp. Malaysia and the SC are committed to ensure that the capital market is competitive and vibrant, while remaining accessible to MSMEs in Malaysia”.
“Hence, this collaboration paves the way towards capital market vibrancy and competitiveness. As the Central Coordinating Agency for MSME development, SME Corp. Malaysia is also committed to playing a key role in spearheading the sustainability agenda for MSMEs,” he added.