Welcome Address at the SC – SME Corp MoU Signing Ceremony “Catalysing MSME Access to the Capital Market”

Speaker: Dato’ Seri Dr. Awang Adek Hussin, Chairman, Securities Commission Malaysia
Theme: Catalysing MSME Access to the Capital Market
Location: Securities Commission Malaysia
Delivered: 15 September 2023

Key Highlight

In his welcome address at the SC-SME Corp MoU Signing Ceremony, Dato’ Seri Dr. Awang Adek Hussin, Chairman of the Securities Commission Malaysia (SC), highlights the importance of the MoU towards strengthening collaboration and encouraging the growth of micro, small and medium enterprises (MSMEs). Through the collaboration and better access to financing, MSMEs will be able to contribute further to the economic growth of the nation.

Here are highlights from his speech:

MSMEs are a critical part of Malaysia’s economy and make up more than 97% of Malaysian businesses, 38% of GDP, and 48% of employment.
The objectives of the MoU include the following:
- Increase MSME access to the capital market solutions;
- Facilitate MSMEs sustainability transition as well as corporate governance practices;
- Strengthen capital market insights, intelligence and data on MSMEs; and
- Increase the capital market funding pool for MSMEs
Over 7,000 MSMEs have benefitted from ECF and P2P financing digital platforms.
Through the MoU partnership, MSMEs will be able to benefit from better access to financing, building their resilience through better understanding, and incorporating corporate governance and sustainability into their businesses.
By improving CG and sustainability practices, MSMEs can enhance their reputation, strengthen their positioning in the supply chain, improve marketability of their products and attract new investors.
Promoting a level playing field and equal opportunities for growth will foster a business environment that encourages innovation and competition.

Full Speech:

Yang Berusaha, Encik Rizal bin Nainy, Ketua Pegawai Eksekutif, SME Corp,

Yang Berusaha, Encik Mohd Rithaudden Makip, Timbalan Ketua Eksekutif SME Corp,

Yang Berusaha, Encik Zaky Moh, Timbalan Ketua Eksekutif SME Corp.

Pengurusan Kanan SME Corp dan SC.

Tuan tuan dan puan puan hadirin sekalian,

Assalamualaikum, salam Sejahtera dan selamat pagi.

Bagi pihak SC, saya ingin mengalu-alukan kedatangan semua ke SC pada pagi ini, untuk bersama dalam majlis menandatangani Memorandum Persefahaman (MoU) antara SC dan SME Corp.
MoU ini merupakan satu langkah penting ke arah memperkukuh kerjasama dan menggalakan pertumbuhan PKS di Malaysia.
Sekaligus memangkin pertumbuhan ekonomi negara yang lebih menyeluruh dan inklusif. Pada masa yang sama, ia bertujuan membantu mengarus perdanaan PKS dalam global supply chain, dengan tuntutan semasa bersabit kelestarian dan sustainability, serta penekanan keatas ESG practices.

As we all know, MSMEs are a critical part of Malaysia’s economy. They make up more than 97% of Malaysian businesses, 38% of GDP, and 48% of employment. They also contribute significantly to innovation and economic resilience. Their success and wellbeing will form an important measure of the success of any country.
However, in Malaysia as in many other countries, they face unique challenges and hurdles, especially when it comes to accessing financing. Many businesses struggle to secure loans from traditional financial institutions. As a result, MSMEs may face difficulties in expanding their operations or invest in new technologies.
Therefore, the objectives of this MOU and collaboration are to:
- Increase MSME access to the capital market solutions;
- Facilitate MSMEs sustainability transition as well as corporate governance practices;
- Strengthen capital market insights, intelligence and data on MSMEs; and
- Increase the capital market funding pool for MSMEs
MSMEs may not be familiar with various market-based options available to them, including ACE and LEAP Market as well as debt financing. This lack of awareness also limits their ability to explore alternative sources of funding, such as venture capital, ECF or P2P financing.
Since the introduction of ECF and P2P financing, over 7,000 MSMEs have benefitted from these digital platforms.
As such, through this partnership, we can leverage our expertise and resources to help MSMEs address these challenges, in giving them better access to financing, and building their resilience through better understanding and incorporating corporate governance and sustainability into their businesses.
By improving CG and sustainability practices, MSMEs can enhance their reputation, strengthen their positioning in the supply chain, improve marketability of their products and attract new investors.
This MoU aligns with our vision to foster a vibrant and resilient capital market that serves not only large corporations, but also opens up doors for smaller enterprises.
The SC has always been committed to developing market-based solutions that are inclusive and cater to the different financing needs of MSMEs.
I want to thank the teams at both the SC and SME Corp for their hard work and commitment in bringing this MoU to fruition.
I am confident that our combined efforts over the next three-years, and beyond, will make a tangible impact on the MSME landscape in Malaysia.
By promoting a level playing field and equal opportunities for growth, we can foster a business environment that encourages innovation and competition.
I look forward to witnessing the fruits of our collaboration as we embark on this journey together – to empower our MSMEs and contribute to the economic growth of our nation.

Terima kasih.