KUALA LUMPUR: The Ministry of Finance (MoF) has instructed the Securities Commission Malaysia (SC) to further recalibrate the LEAP Market to address the issue of financing access for micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs).

Finance Minister II Datuk Seri Amir Hamzah Azizan said the measures to revitalise the LEAP market  should be ready by early next year.

"Two main challenges faced by MSMEs and MTCs are the high cost of fundraising and lack of clear pathways to access the public market and subsequently (this affects) transition to a higher tiered board," he said during the launch of the SC's Five-Year Roadmap to Catalyse MSME and MTC Access to the Capital Market here today.

His speech was read by Treasury secretary general Datuk Johan Mahmood Merican.

He emphasised that the capital market regulator should look into widening the pool of listing advisers to include professionals such as accounting and legal firms.

"The SC should also look into allowing alternative renumeration methods for advisers, such as payment in shares to manage the cashflow requirements of listed companies, with effective safeguards in place to manage conflicts of interest," he said.

He added that it is important to look into derisking MSME and MTC investments, of which Credit Guarantee Corporation would explore and discuss with more equity crowdfunding and peer-to-peer financing platforms to offer guarantees for their solutions.

"Hopefully, more guarantee products can be issued by the first half of 2024, further bolstering efforts to provide greater access to the capital market financing, he said.

Amir Hamzah also said that Capital Markets Malaysia, an affiliate of the SC, would be issuing Simplified Environmental, Sustainability and Governance Disclosure Sector Guides that feature enhanced disclosures for five significant sectors in Malaysia's economy.

"These sectors are Energy, Transport and Storage, Construction and Real Estate, Agriculture and Manufacturing.

"This will provide necessary guidance on the additional environmental and social disclosures expected of these sectors, in order to remain competitive within the global supply chain and marketplace," he said.

 - Bernama