MALAYSIAN CAPITAL MARKET LANDSCAPE
Securities Commission Malaysia (SC) is the entity responsible for the regulation and development of the capital market in Malaysia.
WHO ARE THE INVESTORS
Sophisticated investors are corporations or individuals that meet specific criteria such as:
- Higher asset or income level
- Relevant qualifications and experience
- Recognised as an accredited investor such as pension fund and sovereign wealth funds
Sophisticated investors have access to a wider range of investment products, including those that are more high risk and complex.
Retail investors are individuals who buys or sells shares using their own personal savings for their own future goals.
Institutional investors are large organisations such as the Employees Provident Fund (EPF) or sovereign wealth funds that pool substantial amounts of public money to invest at a big scale. On the MAIN Market, institutional investors act as stable anchors for big companies, while on the ACE Market, they serve as strategic backers for smaller, high-potential businesses.
SEGMENTS OF THE CAPITAL MARKET
Source: SC’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)
WHICH SOLUTION IS BEST FOR YOUR COMPANY
Equity Crowdfunding
Example 1: Jewellery Designs
- In the early to growth/expansion stage
- No profit track record
- Willing to give up a percentage of ownership (i.e., equity) for capital
ACE Market
Example 2: Trade Partners
- In the growth/expansion to matured stage
- Has profit track record and healthy financial position e.g., positive operating cash flows
- Good management and strong corporate governance policies
and practices - Looking to enhance company visibility
Venture Capital / Private Equity
Example 3: Technology Venture
- Innovative and high-growth company
- Looking for investor to provide expertise and network
Peer-to-Peer Financing
Example 4: Agro Farm
- Looking for debt financing
- Require flexible terms e.g., shorter tenure, quick disbursement time
