KUALA LUMPUR: The Securities Commission (SC) has signed a memorandum of understanding (MoU) with SME Corporation Malaysia (SME Corp) to facilitate greater access to capital market financing for micro, small and medium enterprises (MSMEs).
In a statement, SC said the three-year MoU paved 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.
SC chairman Datuk Seri Dr Awang Adek Hussin said the MoU is a significant step by the regulator and SME Corp towards supporting the expansion and resilience of MSMEs, a key engine of economic growth.
"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,” he said.
Under the MoU, the SC and SME Corp aimed 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.
MSMEs are an integral part of the economy, contributing about 38 per cent of Malaysia’s gross domestic product and 48 per cent of total employment in 2022.
Awang Adek said that through the partnership, the SC could leverage its expertise and resources to help MSMEs address challenges by giving them better financing access and building their resilience through better understanding and incorporating corporate governance and sustainability practices into their businesses.
Meanwhile, SME Corp chief executive officer Rizal Nainy said both parties are committed to ensuring 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 is also committed to playing a key role in spearheading the sustainability agenda for MSMEs,” he added.
The MoU would also see the SC and SME Corp jointly embarking on several developmental initiatives to strengthen market insights and data analytics on MSME access to the capital market and expand the capital market funding pool for MSMEs. - Bernama
