KUALA LUMPUR (May 25): Since the LEAP Market was introduced by Bursa Malaysia in 2017 as a stepping stone for small and medium enterprises (SMEs) looking to go public, 53 companies have listed on the platform.

But over the years, the LEAP Market has come under criticism for lack of a transfer framework to facilitate migrations to larger boards, and for restricting share trading to only sophisticated investors, which critics contend has resulted in low trading volumes and poor price discovery.

This structural shortfall led five companies, including Cosmos Technology International Bhd and TT Vision Holdings Bhd, to elect to delist from the LEAP Market. The two companies delisted first and then applied to list on the ACE Market.

Critics have argued that the cumbersome process undermines the LEAP Market's purpose, and imposes double advisory fees on companies.

The long-awaited transfer framework introduced in April 2023 addresses some issues but remains imperfect. As it is, companies still need to apply to withdraw from the LEAP Market and provide equitable exit offers to shareholders.

However, the new framework ensures delisting from the LEAP Market only upon successful transfer to the ACE Market, which reduces the risk of a company losing its listing status.

Having reached a peak in 2019, new LEAP Market listings have slowed significantly, with only one listing in 2023 and none so far this year, prompting industry players to call for a revitalisation of the LEAP Market.

The Securities Commission Malaysia (SC) on Thursday unveiled “Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)”, which has nine strategies covering 36 initiatives.

These include enhancing fundraising pathways, facilitating innovative products for micro, small and medium enterprises (MSMEs) and mid-tier companies (MTC), boosting their market readiness and awareness, growing capital market touchpoints, and re-energising the LEAP Market.

But what exactly are the strategies and initiatives to enhance the attractiveness of the LEAP Market, and to break the current stagnation and listing drought?

The Edge spoke to Astramina Advisory Sdn Bhd managing director Datin Wong Muh Rong, Minority Shareholders Watch Group new chief executive officer Dr Ismet Yusoff, Baker Tilly Malaysia group managing partner Andrew Heng, and Tradeview Capital Sdn Bhd CEO Ng Zhu Hann for their insights.

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