KUALA LUMPUR (March 9): The Securities Commission Malaysia (SC) is planning to introduce a pre-initial public offering (IPO) readiness programme, as part of broader efforts to expand access to capital market financing for growing businesses.

The programme will focus on preparing companies for public listing by strengthening corporate governance, financial disclosure standards, business growth strategies and investor engagement capabilities, according to the regulator’s fourth Capital Market Masterplan 2026–2030 (CMP4) launched on Monday. 

“With respect to investors, the SC will encourage greater participation from institutional investors and high-net-worth individuals as they play an equally important role, given their long-term investment horizons and ability to provide ‘patient capital’,” the regulator said in the report.

The programme is intended to support promising companies — particularly micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) — that may have strong growth potential but lack the resources or expertise to navigate the listing process. It is also aimed at developing a sustainable pipeline of listing-ready Bumiputera companies.

The SC noted that improving visibility and targeted support for smaller firms is critical as many businesses still rely heavily on traditional bank financing. Currently, more than 90% of MSME financing in Malaysia comes from bank lending, but tightening credit requirements mean many companies may struggle to secure loans.

“Capital market intermediaries will play a pivotal role in guiding businesses to identify suitable funding solutions, promoting awareness of market-based financing and fostering a more inclusive and enabling environment for businesses of all sizes,” the SC said.

Malaysia’s equity market has seen a steady increase in listings in recent years. The number of initial public offerings (IPOs) rose from 19 in 2020 to 60 in 2025, comprising five listings on the LEAP Market, 44 on the ACE Market and 11 on the Main Market.

This brought the total number of public-listed companies on Bursa Malaysia to 1,102, surpassing regional peers such as Singapore (606 companies), Indonesia (958) and Thailand (868) as of 2025.

Moving forward, the SC aims to create a seamless end-to-end fundraising journey that enables companies to access capital at different stages of their growth.

This would include expanding the range of financing structures available to firms with variable cash flows, limited collateral or unconventional business models, while expanding the pipeline of capital market-ready companies.

In recent years, the SC has introduced several reforms to simplify the pathway for companies seeking to go public.  

These include the LEAP-to-ACE transfer framework introduced in 2023, which allows companies listed on Bursa Malaysia’s LEAP Market — designed for smaller firms — to migrate more easily to the ACE Market, as well as fast-track the IPO approval process to shorten regulatory review timelines for qualifying companies, among others.

Click here for all you need to know about the Capital Market Masterplan 2026-2030.