SC pledges speedy booster implementation, more measures for capital markets

This article first appeared in The Edge Financial Daily, on February 28, 2020.
SC pledges speedy booster implementation, more measures for capital markets
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KUALA LUMPUR: The Securities Commission Malaysia (SC) said it will announce more capital market-specific measures to complement the government’s newly announced stimulus package to support the Malaysian economy.

In a statement, the SC said the measures outlined in the package provide essential economic reliefs for affected households and businesses in the near term and will help to ensure Malaysia’s recovery in the medium term amid the Covid-19 outbreak, which has hurt the global economy.

It added that it will quickly set up the new co-investment fund of RM500 million for investments alongside private investors in early and growth-stage Malaysian companies.

“Through this co-investment, the government seeks to help realise the potential of home-grown start-ups as well as to crowd-in further private sector funds to fuel high growth companies.”

“The SC is working with relevant stakeholders on the implementation details of the co-investment fund and will provide updates once finalised.”

The commission also said it will work closely with Bursa Malaysia to implement waiver of listing-related fees, which aims to encourage successful growth companies to fundraise through the local stock market.

The one-year waiver, effective immediately, applies to companies seeking listing on the LEAP Market or the ACE Market, as well as companies with a market capitalisation of under RM500 million on the Main Market.