KUALA LUMPUR: The Securities Commission (SC) and Khazanah Nasional Bhd will enhance access to financing and adapt the capital market for Malaysia's mid-tier companies (MTC) to stimulate growth and expansion.
The two parties signed a memorandum of understanding (MoU) for this endeavour.
The MoU supports the SC's five-year 'SME and MTC Roadmap'.
Khazanah, through the Impact Fund which is a key pillar under its Advancing Malaysia strategy, has earmarked an initial RM500 million to provide funding to MTCs.
This will be directed to high-potential MTCs via the private markets, be it private equity or private credit funds, ensuring greater access to capital.
The SC chairman Datuk Mohammad Faiz Azmi expressed appreciation for Khazanah's support of the MSME and MTC Roadmap, as well as the SC's long-term goal of ensuring a more inclusive and holistic capital market fundraising ecosystem.
"MTCs are significant domestic employers and economic contributors. However, they have been identified as the 'missing middle', as they often face difficulties in accessing financing for growth.
"This MOU will address such challenges to ensure sustainable growth and resilience," he said in a statement today.
MTCs make up less than two per cent of firms in Malaysia but contribute 36 per cent of Malaysia's gross domestic product (GDP) and 16 per cent of employment.
This presents a significant driving force for the Malaysian economy, and potential demand pool for the capital market.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said the fund is committed to empowering Malaysian companies and MTCs by providing them with the opportunities they need to excel.
"One of the key pillars for Khazanah's "A Nation that Creates" framework is in catalysing future ready industries and talents, anchored on transforming firms of different sizes to derive greater value creation, while increasing national productivity and global competitiveness.
"The objective is also to establish Malaysian companies that continue to create and innovate, with persistent growth momentum and economic resilience."