Bursa Malaysia Bhd is expected to launch a new private market, a platform specially designed for the small and medium enterprises (SMEs), on the bourse in the next quarter. Undeniably, SMEs were a core contributor to the country’s gross domestic product (GDP) and played an important role in the country’s overall production network and employment. The introduction of this SME market, allow SMEs to have access to capital, helping to boost the dwindling number of initial public offerings (IPOs), while aids in achieving the target of 41 per cent contribution to gross domestic product by 2020 set under the SME Masterplan.
With the introduction of the SMR Market, there will be three trading markets on Bursa Malaysia, the other two being the Main Market and ACE Market. However, the listing expenses for this new board will be much lesser than the existing Main Market and ACE Markets, along with less documentation. Meaning to say, there would be no specific criteria set for participants in the new SME Market as well as no profit track record needed. It will only be made available to sophisticated individual investors and companies with net asset value of RM10 million and above.
Chief Executive Officer, Datuk Seri Tajuddin Atan, said trading activities for the SME Market would follow the ‘light-tight’ rules, whereby “if the rules are too restrictive, maybe we should loosen it, but if it’s too loose, then we will tighten it to make sure the market grows”. SMEs typically make up some 98.5% of companies in Malaysia and contribute more than 30% to the GDP. Under the Government’s SME Masterplan (2012-2020), it targets to boost SMEs’ contribution to the GDP to 41% by 2020.
Source 1: http://www.thestar.com.my/business/business-news/2016/09/02/bursa-releases-paper-on-new-listing-market-for-smes/#R0x1zR4w4Q0r6jVK.99
Source 2: http://www.themalaymailonline.com/money/article/bursa-malaysia-to-launch-new-private-market-for-smes#sthash.xyTZlPXV.dpuf