The Securities Commission Malaysia (SC) today signed a Memorandum of Understanding (MoU) with Khazanah Nasional Berhad (Khazanah) via Dana Impak Fund to increase access to funding and familiarise the capital markets for Malaysian mid-tier companies (MTC) to further catalyse their growth and expansion.
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The MoU supports the SC’s ‘Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)’ (“MSME and MTC Roadmap”).
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The SC Chairman Dato’ Mohammad Faiz Azmi commended Khazanah’s commitment to support the growth and expansion of MTCs. “We appreciate Khazanah’s support of the MSME and MTC Roadmap and SC’s long-term goal to ensure a more inclusive and holistic capital market fundraising ecosystem.”
“MTCs are significant domestic employers and economic contributors. However, they have been identified as the ‘missing middle’, as they often face difficulties in accessing financing for growth. This MOU will address such challenges to ensure sustainable growth and resilience,” he said.
MTCs make up less than 2% of firms in Malaysia but contribute 36% of Malaysia’s gross domestic product (GDP) and 16% of employment. This presents a significant driving force for the Malaysian economy, and potential demand pool for the capital market.
Khazanah Nasional Berhad Managing Director Dato’ Amirul Feisal Wan Zahir said that the fund is committed to empowering Malaysian companies and MTCs by providing them with the opportunities they need to excel.
Khazanah Nasional Berhad, through Dana Impak which is a key pillar under its Advancing Malaysia strategy, has earmarked an initial RM500 million to provide funding to MTCs. This funding will be directed to high-potential MTCs via the private markets, be it private equity or private credit funds, ensuring greater access to capital.
“One of the key pillars for Khazanah’s “A Nation that Creates” framework is in catalysing future ready industries and talents, anchored on transforming firms of different sizes to derive greater value creation, while increasing national productivity and global competitiveness. The objective is also to establish Malaysian companies that continue to create and innovate, with persistent growth momentum and economic resilience. We look forward to our collaboration with the SC, to support MTCs to be well-positioned to contribute substantially to the nation,” he said.
Through mutual co-operation, the MoU will focus on measures to support MTCs’ next phase of growth and innovation, and joint programmes and initiatives to increase their awareness and access to the capital market. This includes:
- Fundraising incubation for 60 – 100 MTCs to enhance capital market-readiness
Specialised MTC capacity-building programmes to raise MTC competitiveness and innovative capacity Greater MTC-focused investments to spur this growth segment - Under this MOU, Khazanah will also implement capacity-building programmes with key partners such as the SC to drive productivity improvements and unlock new opportunities in business, innovation and funding including market-based financing solutions.
- The aim is to build a strong pipeline of capital market-ready MTCs, including upskilling a pool of selected MTCs on fundraising requirements via the Elevate programme by the SC affiliate Capital Markets Malaysia, and enhancing their growth innovation capabilities.
These initiatives are consistent and in line with the ambition of the MSME and MTC Roadmap1 and the GEAR-uP programme2.
About Securities Commission Malaysia (SC)
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.
Our mission is “to promote and maintain fair, efficient, secure and transparent securities and derivatives markets; and facilitate the orderly development of an innovative and competitive capital market”.
The SC has direct responsibility for rule-making, enforcing regulations pertaining to the capital market, ensuring sustainable market growth and development, supervising capital market activities and market institutions including the exchanges, clearing houses and registered market operators, and regulating all entities and persons licensed under the Capital Markets and Services Act 2007. Based on the SCA, the SC reports to the Minister of Finance and our accounts are tabled in Parliament annually.
About Khazanah Nasional Berhad
Khazanah Nasional Berhad is the sovereign wealth fund of Malaysia with the aim of delivering sustainable economic and societal values for the nation.
As a strategic investor, Khazanah Nasional Berhad strive to balance between growing financial returns and being a responsible organisation for future generations of Malaysians to benefit from what we do today.
In balancing our dual objective, we invest in two separate funds. Our Commercial Fund focuses on investing responsibly and commercially to preserve and grow the long-term value of our assets, while Khazanah Nasional Berhad Strategic Fund undertakes investments to deliver economic and societal returns for the nation and its people.
Khazanah Nasional Berhad was incorporated under the Companies Act 2016 on 3 September 1993 as a public limited company and began operations a year later. Except for one share owned by the Federal Lands Commissioner, all the share capital of Khazanah Nasional Berhad is owned by the Minister of Finance Incorporated, a body pursuant to the Ministry of Finance (Incorporation) Act 1957.
