Local bourse Bursa Malaysia Bhd (Bursa Malaysia) released a consultation paper on Sept 2nd, seeking public feedback. The paper stands as a proposal to establish a new market on the bourse that would allow small and medium enterprises (SMEs) greater access to the capital market.
“SMEs are a core contributor to the country’s GDP and plays an important role in the country’s overall production network and employment. Bursa Malaysia aims to facilitate greater access to capital market financing for SMEs to support their developmental and life-cycle needs,” said Datuk Seri Tajuddin Atan, CEO of Bursa.
He cited reports by the World Federation of Exchanges and the World Bank Group’s Policy Research Working Paper, which noted that stock exchanges played an important role in the development of SME financing, but required the right ecosystem to ensure the success of such a market.
As such, the three key guiding principles of the new market would be cost efficiency, appropriate regulations, and being a qualified market for sophisticated investors.
The consultation paper is available here, and interested parties are invited to submit their comments and feedback before Oct 2nd, 2016.