KUALA LUMPUR: The Securities Commission Malaysia (SC) is undertaking a review of practices by Malaysian public-listed companies (PLCs) in managing the annual general meeting.

Executive chairman Datuk Mohammad Faiz Azmi said the review found that many general shareholder meetings are still being held in a fully virtual format both by the Main Board and ACE companies.

"While fully virtual meetings were a necessity during the pandemic, listed companies must take necessary steps towards transitioning back to physical or hybrid meetings," he said during the Securities Industry Development Corporation Business Foresight Forum 2024 here today.

He said the move will engender more trust in PLCs.

"After all, building trust in the capital market is crucial for attracting investments and that will also help the micro, small and medium enterprises (MSMEs) and the capital market in general," he said.

He said the MSME market is key to a vibrant capital market.

Therefore, the Capital Market Masterplan 3 launched in 2021 reinforces the need to create an environment to drive MSME growth.

The SC has also recently launched a comprehensive five-year roadmap to catalyse access to capital market financing for MSMEs and mid-tier companies (MTCs).

The roadmap aims to grow the MSME and MTC capital market by seven times, from RM6.3 billion in 2023 to RM40 billion in 2028.

"Basic information suggested that we have a funding gap of about RM90 billion. So, how do we do this?

"(We can address this) by improving access to financing and broadening financing options, including developing new, customised capital market products that make it easier for MSMEs to access these funds," he said.

Mohammad Faiz said that, for example, growing the pool of peer-to-peer (P2P) operators focusing on the offering of debt-based financing instruments will allow MTCs to seek debt-based financing directly from investors while reducing the number of intermediaries involved in the process.

He noted that the Malaysia Co-Investment Fund, with an additional RM100 million from Budget 2024, has been instrumental in helping MSMEs raise funds through equity crowdfunding (ECF) and P2P financing platforms.

Since 2015, ECF and P2P have supported over 18,000 MSMEs, helping them raise around RM 8 billion as of June 2024.

"The additional RM100 million allocation will also support key initiatives in agriculture, healthcare, education, environment, community and waqf asset development," he noted.

Meanwhile, Deputy Finance Minister Lim Hui Ying, in her speech, said the government is committed to creating an environment where the MSMEs could thrive and contribute fully to Malaysia's prosperity.

"The government recognises the critical role played by MSMEs as the backbone of the nation's economy, driving innovation, job creation, and social progress.

"Our economic growth is inextricably linked to their success," she said.

Lim noted that the government has established a variety of grants and initiatives to help MSMEs overcome numerous challenges, including access to finance, market access, and talent development.

She said the government offers targeted policies and programmes for Malaysian businesses, namely startUp SME tax rebate, SME special deduction, electric vehicle charging facilities tax deductions, and investment tax allowance.

Besides, the government is also committed to simplifying regulations and reducing bureaucratic burdens to create a level playing field for businesses of all sizes.

She said talent development is also a key priority, and hence, the government is investing in education and training programmes to equip the workforce with the skills needed to meet the demands of the modern economy.