The Malaysian Investment Development Authority through its Domestic Investment Coordination Platform with Bursa Malaysia and Capital Markets Malaysia, an affiliate of the Securities Commission Malaysia in recognising the financial challenges faced by the domestic industry players, particularly the SMEs and Mid-tier companies to execute their business expansion plans, the institutions are proposing the option of raising capital through the public and private markets, as well as market-based financing options such as equity crowdfunding registered with the SC.
During an event jointly organised by the bodies, En. Sukri Abu Bakar, the Director of Domestic Investment Division, MIDA remarked “Through MIDA’s proprietary services, we have enabled various scales of local businesses, including SMEs and SMIs.” The Domestic Investment Coordination Platform or DICP aims to bridge businesses, technologies and research capability with capital funding sourced from the public and private markets.
This is also being seen as a great way to increase awareness and create a better understanding among SMEs and MTCs throughout Malaysia to ultimately tap the Malaysian capital market through various channels including IPOs (initial public offerings). IPOs will not only facilitate the raising of capital to help fulfil growth strategies, but also open doors to new opportunities for the companies at different stages of growth.
Among the programs available for business owners include CMM’s Elevate Programme, a bespoke executive leadership programme for Malaysian MTCs. The 12-month capacity development programme offers guidance on business redesign strategies, fundraising models and access to fundraising through the capital market. Companies that stand to benefit from this programme include business founders, privately-held family-run businesses in their second and third generations, entrepreneurs that are looking to leverage new investors for growth strategies as well as companies that are seeking a listing on the local bourse to expand their footprints.
The event featured panel presentations by MIDA, Capital Markets Malaysia and Bursa Malaysia Berhad; followed by sessions between participants and private equity firms such as COPE and Bintang Capital; as well as equity crowdfunding platforms, 1337 Ventures and PitchIN.
