As part of initiatives to generate greater awareness of capital raising and investment opportunities in the Malaysian capital market within the Sabahan business community, Capital Markets Malaysia, an affiliate of the Securities Commission Malaysia (SC), hosted the Invest Borneo Forum in Kota Kinabalu today.
Targeting Sabah based corporations, micro, small-and-medium enterprises (MSMEs) and entrepreneurs, this half-day forum focused on how the full spectrum of capital market funding solutions, from IPOs and bonds to alternative market-based financing, namely equity crowdfunding (ECF) and peer-to-peer (P2P) financing, may be used to fund and expand the business operations of Malaysian business owners.
While traditionally companies have looked to banks for financing, the funding landscape has rapidly evolved in recent years. The capital market plays a significant role in financing the real economy, with total funds raised through bond, sukuk and equity issuances amounting to RM114.6 billion in 2018. The Malaysian capital market, with its diverse range of funding options, is also well positioned to cater to SMEs and entrepreneurs at varying stages of financing needs.
The SC’s developmental agenda also includes broadening of access to financing for MSMEs. Malaysia’s SMEs contributed 37.1% of GDP in 2017, with over 900,000 SMEs established as of 2017. While they make a substantial contribution to the economy, the SMEs and micro enterprise sector remain largely underserved.
The SC continues to support digital innovation to meet the financing needs of MSMEs and enable greater financial inclusion for Malaysian issuers and investors. ECF and P2P financing platforms have thus far helped raise financing for over 900 SMEs in the past three years. These platforms, which are registered by the SC, have helped companies collectively raise close to RM 350 million for their business expansion.
This Invest Borneo forum also provides delegates with a view of how digital investment management platforms can provide Malaysians with a more convenient, affordable, and accessible channel to manage and grow their wealth.
Speakers at the forum, panellists representing investment banks, ECF and P2P operators, digital investment platforms and rating agencies, gave an in-depth view and understanding of the Malaysian capital market and how to leverage it for their capital raising and investment needs.
Securities Commision Malaysia
About Securities Commission Malaysia
The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about the SC is available on its website at www.sc.com.my. Follow the SC on twitter at @SecComMy for more updates.
About Capital Markets Malaysia
Capital Markets Malaysia (CM²) was established in 2013 as part of efforts by the Malaysian Government and the Securities Commission Malaysia (SC) to promote the country’s value proposition across various segments of the capital market globally. SC launched the CM² brand in 2014 to spearhead both local and international positioning and profiling of the Malaysian capital market, representing the multi-faceted market with its wide range of conventional and Islamic products, supported by a strong governance infrastructure. CMM aims to profile the competitiveness and attractiveness of the various segments of the capital market to promote the Malaysian capital marketplace, bringing together investors and investment opportunities.
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Capital Markets Malaysia
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Global Compact Network Malaysia
Office: +603 84081650