SC and Khazanah Sign MoU to Catalyse MTC Access to the Capital Market

KUALA LUMPUR: The Securities Commission Malaysia (SC) signed a Memorandum of Understanding (MoU) with Khazanah Nasional Berhad (Khazanah) through the Dana Impak Fund to enhance funding access for Malaysian mid-tier companies (MTCs) and promote their participation in capital markets, further driving their growth and expansion.

This collaboration aligns with the SC’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028) (“MSME and MTC Roadmap”).

Strategic Partnership for Inclusive Growth

SC Chairman Dato’ Mohammad Faiz Azmi praised Khazanah’s commitment, saying:

“We appreciate Khazanah’s support of the MSME and MTC Roadmap and our goal of fostering a more inclusive and holistic capital market fundraising ecosystem.”

He further emphasized that MTCs, despite being essential contributors to the economy, often struggle to access growth financing.

“MTCs are significant domestic employers and economic contributors, but they face challenges as the ‘missing middle’ in accessing financing. This MoU aims to address these issues to ensure sustainable growth and resilience,” he added.

MTCs: Key Economic Drivers

Though MTCs constitute less than 2% of firms in Malaysia, they contribute 36% of the country’s GDP and 16% of employment, underscoring their economic importance and potential for capital market involvement.

Empowering Companies Through Dana Impak

Khazanah’s Managing Director, Dato’ Amirul Feisal Wan Zahir, reiterated Khazanah’s commitment to supporting Malaysian companies and MTCs:

“Through Dana Impak, a key pillar under our Advancing Malaysia strategy, we have earmarked RM500 million to fund high-potential MTCs via private markets—whether through private equity or private credit funds—ensuring improved access to capital.”

He highlighted the importance of developing future-ready industries and fostering innovation.

“One of the key pillars in Khazanah’s ‘A Nation that Creates’ framework is transforming firms of all sizes to generate greater value creation while improving national productivity and global competitiveness. Our collaboration with the SC will position MTCs to contribute substantially to Malaysia’s economy,” he added.

Key Focus Areas and Initiatives

The MoU will focus on several strategic initiatives to propel MTC growth:

• Fundraising incubation for 60–100 MTCs to enhance their readiness for capital markets.
• Specialised capacity-building programmes to increase competitiveness and innovation.
• MTC-focused investments to stimulate growth and economic impact.

Khazanah, in collaboration with the SC, will also implement capacity-building programmes to unlock new business, innovation, and funding opportunities, including market-based financing solutions.

Building Capital Market-Ready MTCs

A core objective is to create a pipeline of capital market-ready MTCs. This includes upskilling selected companies on fundraising requirements through the SC affiliate Capital Markets Malaysia’s Elevate programme, along with initiatives to strengthen growth and innovation capabilities.

These efforts align with the ambitions of the MSME and MTC Roadmap and the GEAR-uP programme, fostering long-term growth, innovation, and economic resilience.