What is the compound annual growth rate targeted for MSME and MTC capital market fundraising?

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The Securities Commission Malaysia Targets a 46 Per Cent Compound Annual Growth Rate for MSME and MTC Capital Market Fundraising

The Securities Commission Malaysia (SC) has set a target to increase fundraising within the micro, small and medium-sized enterprises (MSME) and mid-tier companies (MTC) capital market by sevenfold, reaching RM40 billion by 2028. This ambitious goal translates to a compound annual growth rate (CAGR) of 46 per cent over the five-year period, significantly expanding from the RM6.3 billion raised in 2023. This roadmap, titled “Catalysing MSME and MTC Access to the Capital Market: Five-Year Roadmap (2024-2028)”, outlines a comprehensive plan to enhance access for these businesses.
Strategic Objectives for Market Expansion

The SC's five-year roadmap is guided by five core principles designed to address existing challenges and leverage emerging opportunities within the capital market ecosystem. These principles underpin nine overarching strategies and 36 specific initiatives. The focus is on developing tailored and innovative products, alongside enhancing existing fundraising pathways, to better serve the needs of MSMEs, including startups, and MTCs.
Roadmap Alignment with National Economic Plans

The roadmap's objectives are closely aligned with key national economic frameworks. It directly supports one of the primary goals of the SC's Capital Market Masterplan 3 (CMP3), which aims to deepen market-based financing options for firms. Furthermore, the initiative complements and reinforces national development policies such as the Madani economy framework, the 12th Malaysia Plan, the New Industrial Master Plan 2030, and the National Energy Transition Roadmap. The plan also benefits from the support of four relevant ministries: Finance, Investment, Trade and Industry, Economy, and Entrepreneur and Cooperatives Development.
Key Initiatives and Approaches

The roadmap's strategies encompass a range of actions, including revitalising the LEAP Market as a feeder for SMEs, innovating financial instruments specifically for MSMEs and MTCs, and facilitating private market transactions. Efforts will also be directed towards improving the digitalisation and connectivity of information for these companies, boosting their readiness for capital market engagement, and strengthening awareness among potential investors and intermediaries. The implementation of these strategies will be supported by 36 identified initiatives, employing three main approaches: product innovation, market infrastructure development, and capacity building.

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What is the compound annual growth rate targeted for MSME and MTC capital market fundraising?

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