KUALA LUMPUR: The government has allocated funds totaling RM50 million through the PKS@BURSA Programme to assist 200 high-potential small and medium enterprises (SMEs) to prepare for listing on Bursa Malaysia by 2030.
Minister of Entrepreneur and Cooperative Development (KUSKOP) Steven Sim Chee Keong said the programme, implemented through SME Corp Malaysia, aims to build a stronger channel to produce more companies that are ready to be listed in the future.
He said through the initiative, eligible companies can take advantage of the SME Listing Fund which offers financing between RM2 million and RM5 million at a profit rate not exceeding five percent for a period of up to five years.
“Companies that participate in PKS@BURSA are eligible to receive a rebate of up to 20 percent if they are successfully listed on Bursa Malaysia within five years.”
“This will help reduce the cost of listing preparations and encourage more high-potential SMEs to access the capital market,” he told the media after launching the SME@Bursa programme and officiating the ‘Road to IPO’ initiative here, today.
Sim said the financing can be used for working capital purposes, corporate financing needs as well as expenses related to public listing preparations, thus helping the company manage the costs involved in the listing process.
He said PKS@BURSA was designed to address two major challenges faced by growing companies, namely the cost of listing preparation and the ability requirements to enter the capital market.
The move thus provides a clearer path for SMEs with the potential to grow, expand operations and gain access to growth capital through Bursa Malaysia.
“PKS@BURSA supports the government’s aspirations under the 13th Malaysia Plan to strengthen the country’s capital market ecosystem and expand access to growth financing for local enterprises.
“Our goal is not just to produce more listed companies but to produce more companies that have the ability to be listed. PKS@BURSA is one of the paths to realizing that goal,” he said.
Sim said the programme not only provides financing, but also places emphasis on capacity building to help SMEs meet the governance and management requirements needed to enter the capital market.
“The journey to this listing, they need (preparation in terms of) governance, management, which may be a challenge for smaller companies,” he said.
He said SME Corp would collaborate with Credit Guarantee Corporation Malaysia Bhd (CGC), Bursa Malaysia and several other agencies to provide guidance and support to SME companies interested in participating in the programme.
— BERNAMA
