KUALA LUMPUR: The lack of access to financing remains a major issue for micro-entrepreneurs and small and medium enterprises (SMEs) in the country, said Digital Minister Gobind Singh Deo.
Expanding financing options, he said, is crucial for ensuring a brighter future, particularly for those in the agricultural sector.
He added that collaboration between various ministries and agencies could help develop the business potential of agricultural entrepreneurs in the country.
Gobind was speaking at the launch of the Securities Commission's (SC) GROWMatch, a new matching initiative that allows agri-business entrepreneurs to showcase their projects and attract necessary funding.
The initiative aims to address the financing gap faced by agri-businesses and promote sustainable growth in the sector.
Alternative financing options in the capital market is expected to help spur the country's economic growth and address food security challenges.
According to Gobind, the introduction of matching platform can create new hopes and opportunities while also having the potential to strengthen the nation's economy.
He noted that matching platforms like GROWMatch should be expanded across all industries and sectors.
"Based on the success of this programme, perhaps the SC could consider expanding this initiative to micro-entrepreneurs and SMEs beyond the agricultural sector.
"We must assist our SMEs and micro-entrepreneurs in any way possible. Their contribution to the nation's prosperity is significant, and we must not fail in supporting local enterprises by enhancing their capabilities and productivity," he added.
The SC chairman Datuk Mohammad Faiz Azmi said GROWMatch uses the strengths of various partners to offer support and resources for food security innovators, particularly small companies struggling with funding.
"GROWMatch not only connects entrepreneurs with investors, but also offers mentorship and resources to help them succeed in the competitive market.
"The diversity and focus on innovative and sustainable tech-driven solutions by the shortlisted companies in GROWMatch signal a promising future for the agriculture industry, and the capital market is excited to support these entrepreneurs," he added.
GROWMatch taps into equity crowdfunding (ECF) and peer-to-peer financing (P2P) platforms to support micro, small, and medium-sized enterprises (MSMEs) in strategic and underserved sectors.
Since their inception, both ECF and P2P platforms have helped over 18,000 MSMEs raise nearly RM8 billion in funding as of June 2024.
GROWMatch, which is aligned with the SC's Five-Year Roadmap (2024-2028) for MSMEs and mid-tier companies, is focusing on providing risk capital through private markets.
Its partners, which include venture capital firms and government agencies, play a key role in mentoring applicants, refining their business strategies and connecting them with investors.
The GROWMatch pitching session today saw 20 shortlisted entrepreneurs presenting innovative solutions to ECF/P2P partners, vying for various financing options in the food security value chain.
The SC also signed a memorandum of understanding (MoU) with the Malaysia Digital Economy Corporation (MDEC), Selangor Information Technology and Digital Economy Corporation (Sidec), Universiti Putra Malaysia (UPM) and Impact Circle.
The MoU aims to enhance food security by leveraging diverse expertise and alternative financing to support agripreneurs in scaling their businesses.