This article first appeared in The Edge Financial Daily on October 4, 2017

KUALA LUMPUR: Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) Market can help the country retain its talented and growth-driven entrepreneurs, said Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan.

Speaking at the first LEAP company listing yesterday, Tajuddin said entrepreneurs and small and medium enterprises (SMEs) could tap into Bursa’s network to better reach potential investors via this new LEAP Market.

“Previously, because SMEs lacked avenues which connect them to a larger investor base, investors from abroad with a lot of funds acquire these companies and take them outside [of Malaysia].

“Later, they will come back here and we will buy from them the services which were essentially developed by Malaysians,” Tajuddin said.

Meanwhile, Tajuddin brushed off concerns over investing in LEAP-listed companies, who go through less stringent listing requirements, compared with its ACE and Main Market counterparts.

“That is why in the early stages, we welcome savvy, high-net-worth investors who are familiar with the risks involved, when investing in newer companies. Otherwise, you can opt [for] ACE and Main Market-listed companies, where we have all the measures in place for less-experienced investors,” Tajuddin also said.

Companies which qualify for the LEAP Market include those at seed or early growth, but lack assets for collateral and a track record. Only sophisticated investors — defined as individuals with more than RM3 million in assets or more than RM300,000 in annual income, and corporates with net assets of more than RM10 million — are allowed to invest in LEAP companies.

According to a market study by SME Corp Malaysia, some 19,000 local SMEs can benefit from the launch of the LEAP Market, being one of the avenues to seek the necessary funding, added Tajuddin.

To date, 11 companies — including newly listed Cloudaron Group Bhd — have approached advisers to look into a LEAP listing.