PETALING JAYA: The Securities Commission (SC) has signed a memorandum of understanding with SME Corporation Malaysia (SME Corp) to facilitate greater access to capital market financing for micro, small and medium enterprises (MSMEs).
The MoU is expected to create about 200 capital market-ready MSMEs by 2026, SC said in a statement today.
It also intends to strengthen the familiarity of 300 MSMEs with sustainability disclosures and corporate governance best practices.
SC chairman Awang Adek Hussin said the MoU is a significant step towards supporting the expansion and resilience of MSMEs, a key engine of economic growth.
MSMEs contributed about 38% of Malaysia’s gross domestic product (GDP) and 48% of total employment in 2022.
“This MoU aligns with our vision to foster a vibrant and resilient capital market that serves not only large corporations but also smaller enterprises.
“Through this partnership, we can leverage our expertise and resources to help MSMEs address challenges, by giving them better access to financing and by building their resilience through better understanding and incorporating corporate governance and sustainability practices into their businesses,” he said during the signing of the MoU.
SME Corp CEO Rizal Nainy said both SME Corp and the SC are committed to ensuring that the capital market is competitive and vibrant while remaining accessible to MSMEs in Malaysia.
In addition, under the MoU, both parties have agreed to embark on several joint developmental initiatives to strengthen market insights and data analytics on MSMEs’s access to the capital market.
The MoU was signed by Awang and Rizal. It was witnessed by SC managing director Azalina Adham and SME Corp deputy CEO (implementation & development) Zaky Moh.