SC, SME Corp. Malaysia Sign MoU on Capital Market Financing for MSMEs


Kuala Lumpur, 26 September 2023

The Securities Commission Malaysia (SC) has signed a Memorandum of Understanding (MoU) with SME Corporation Malaysia (SME Corp. Malaysia) to facilitate greater access to capital market financing for micro, small and medium enterprises (MSMEs).

The three-year MoU paves 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.

Under the MoU, the SC and SME Corp. Malaysia aim 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.

The SC Chairman Dato’ Seri Dr. Awang Adek Hussin said the MoU is a significant step by the SC and SME Corp. Malaysia 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 during the signing of the MoU. MSMEs are an integral part of the economy, contributing about 38% of Malaysia’s GDP and 48% of total employment in 2022.

“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 added.

Commenting on the MoU, SME Corp. Malaysia Chief Executive Officer (CEO) Rizal Nainy said, “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 in playing a key role in spearheading the sustainability agenda for MSMEs.”

In addition, 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 and to expand the capital market funding pool for MSMEs.

The MoU was signed by SC Chairman Dato’ Seri Dr. Awang Adek Hussin and SME Corp. Malaysia CEO Rizal Nainy. It was witnessed by SC Managing Director Datin Azalina Adham and SME Corp. Malaysia Deputy CEO (Implementation & Development) Zaky Moh.

Securities Commission Malaysia

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