KUALA LUMPUR: The Securities Commission (SC) plans to introduce a streamlined transfer mechanism that will enable qualifying ACE Market companies to transfer to the Main Market from 2024.
Chairman Datuk Seri Dr Awang Adek Hussin said the SC, together with Bursa Malaysia, is improving efficiency in the public markets to facilitate a start-up's initial public offering (IPO), with measures such as reducing time-to-market for those seeking a listing.
"Details of the proposed automatic transfer framework will be announced later this month. The introduction of a new simplified and accelerated transfer process will facilitate a seamless transfer of listings to promote sizeable and quality ACE Market companies to the Main Market.
"By being in the Main Market, it will open up opportunities for foreign investors to participate. This should encourage greater foreign participation in our capital market," Awang Adek said in at the Malaysia Venture Forum 2023 here today.
He said capital markets play an important role in enabling easier access to funding for startups and micro, small and medium enterprises (MSMEs).
Hence, the SC has taken proactive steps to facilitate fundraising for businesses, particularly at the early stage of financing.
"Our efforts include allowing flexible financial instruments, facilitating more efficient exit options, encouraging more investments into private markets and forging partnerships and collaborations, all of which are pivotal in nurturing a vibrant venture capital and private equity ecosystem," he said.
The SC and Bursa will continue to facilitate exits for promising companies, especially in the tech sector, and recent capital market initiatives aimed at supporting IPO-ready companies are expected to have a positive impact.
"These include tax deductions for eligible tech-based companies on the Main and ACE markets. Concessions on the soon-to-be-implemented capital gains tax will be made available to IPOs on Bursa Malaysia.
"These measures are designed to enhance fundraising efforts, sustain the vibrancy of the IPO market, and improve trading liquidity," he said.
The SC is seeing a healthy pipeline of IPOs this year, with 32 companies approved to date for listing, many of which are tech-related.
Meanwhile, Awang Adek said Malaysia has implemented targeted policies to foster a more dynamic start-up ecosystem, and this includes RM90 billion to be invested in the New Industrial Master Plan 2030.
Start-ups and SMEs are expected to play a crucial role contributing an anticipated RM30.8 billion in gross domestic product by 2030.
The SC is also looking into introducing a small offering exemption in the Capital Markets and Services Act next year, facilitating a clear safe harbour for offerings of a certain size to sophisticated investors.
