Bursa Malaysia Berhad welcomes the announcement made by the Prime Minister, Datuk Seri Mohd Najib, in regards to the new LIVE (Listing Incentives for SME) program.
This new incentive is set to boost the Leading Entrepreneur Accelerator Platform (LEAP) Market and provide an avenue for underserved Small and Medium Enterprises (SMEs) to turn to the capital market to raise funds, where SMEs have been the engine of growth and job creation.
In 2016, 98.5 per cent of businesses established in Malaysia were SMEs, responsible for 65.3 per cent of the country’s employment, 36.6 per cent of the country’s GDP and 18.6 per cent of Malaysia’s exports.
Given the significance of the SME sector to the economy, in July 2017, Bursa Malaysia launched the LEAP Market, the first of its kind in ASEAN aimed at addressing the SME financing gap, providing SMEs an alternative and efficient fund-raising platform through the capital market.
The LEAP Market is a proposition that benefits both SMEs and investors.
For SMEs, the LEAP Market offers a fast and cost-effective platform for fundraising while enhancing their visibility and profile by being a listed entity.
On the other hand, sophisticated investors in the LEAP Market can take comfort investing in a transparent and orderly market with easy access to information and disclosures.
Investors are also given the flexibility to divest their equity.