The 93-page roadmap, crafted with insights from the World Bank Group as the technical adviser, was unveiled yesterday by Treasury secretary-general Datuk Johan Mahmood Merican, who represented Finance Minister II Datuk Seri Amir Hamzah Azizan.
SC chairman Datuk Seri Awang Adek Hussin said one of the primary challenges faced by small businesses was securing financing.
Therefore, the overarching objective of this strategy is to ensure that these businesses secure 20 per cent of their funding from the capital market.
He foresees that the blueprint will facilitate MSMEs and MTCs in accessing improved financing options by streamlining the process of going public for them.
"Instead of paying cash upfront, they can give shares to the advisers to pay for the fees.
So that will ease their financial burden, and the adviser will get a better return as well," he said after launching the report.
The SC estimates that there are 15,000 to 28,000 MSMEs and MTCs, generating annual sales of under RM500 million, with the potential to tap the capital market.
The roadmap outlines nine strategies aimed at aspects such as enhancing funding avenues for MSMEs and MTCs, revitalising the LEAP Market as a platform for SMEs and promoting public-private partnerships to stimulate investments.
Additionally, it details nine cross-cutting strategies and 36 key initiatives, grouped under three main approaches — regulatory and product innovation, market infrastructure, and capacity building.
One notable initiative involves partnering with SME Corporation Malaysia to establish a listing grant, which will offer financial support to mitigate the listing expenses for MSMEs.
Moreover, the SC is dedicated to bolstering the preparedness of MSMEs and MTCs for capital market entry, having developed essential skills and tools for their assessment and readiness evaluation.
Another significant initiative focuses on facilitating the transition of MSMEs and MTCs, which have utilised ECF for fundraising, to the public market, thereby presenting attractive exit opportunities for their investors.
"We are also looking at boosting the capital market readiness of these companies, facilitating private market deals, and educating and increasing the awareness of investors and intermediaries about these companies," said Awang Adek.
The SC pointed out that similar measures have been undertaken in several countries, including Indonesia, China and Italy.
In Indonesia, Blossom Finance introduced the SmartSukuk platform, using blockchain technology to streamline the issuance of syariah-compliant financing customised for SMEs.
Meanwhile, Italy initiated minibonds in 2012, granting SMEs access to corporate bonds to bolster their expansion projects, investments or refinancing objectives.