This article first appeared in Wealth, The Edge Malaysia Weekly on June 22, 2026 - June 28, 2026

Investors could soon see a new group of growth companies list on Bursa Malaysia’s LEAP Market as equity crowdfunding (ECF) operators prepare issuers that have secured funding and recorded substantial valuation growth in the private market.

The companies being discussed include Debit Circles Sdn Bhd (Vircle), DF Automation and Robotics Sdn Bhd, QueueMed Healthtech Sdn Bhd and Nu Vending Sdn Bhd. Having tapped ECF investors, these companies could use the LEAP Market as a stepping stone to raise growth capital, build a public-market track record, and offer earlier investors a clearer route to liquidity.

ECF operator MyStartr Sdn Bhd says it has up to eight issuers in its pipeline, with two or three that could move to LEAP — the main platform for early-stage and emerging companies — as early as next year. Pitch Platforms Sdn Bhd and Leet Capital are also reviewing companies in their ecosystems that could eventually be prepared for a move to the main platform for early-stage and emerging companies.

The pipeline is taking shape after Bursa Malaysia, following a joint review with the Securities Commission Malaysia, proposed changes to the LEAP Market framework aimed at giving ECF-backed companies a clearer pathway into the public market. The consultation paper was issued on May 18, with feedback open until June 15.

Dubbed the LEAP Market 2.0 initiative, Bursa Malaysia’s proposal would allow ECF-backed companies to apply directly for admission to the LEAP Market if they have completed at least one equity fundraising exercise on their hosting ECF platform and raised a minimum aggregate of RM5 million.

The RM5 million can include funds raised from venture capital (VC) or private equity (PE) firms, but the companies must still have completed at least one ECF fundraising exercise to use this route.

“The RM5 million raise acts as evidence that investors have already validated the company. The company may then access a simplified admission pathway without requiring a traditional approved adviser,” explains Bikesh Lakhmichand, founder and CEO of 1337 Ventures Sdn Bhd, which operates Leet Capital.

An approved adviser is the party normally authorised by Bursa Malaysia to guide a company through the initial LEAP listing process and assess its suitability for listing — a process industry players say can be costly for smaller issuers.

Instead, ECF-backed companies would engage a listing agent for the LEAP Market listing, which may include ECF registered market operators or VC and PE firms. “This potentially reduces cost, duplication and friction in becoming a public company,” says Bikesh.

That said, the LEAP Market has struggled to gain traction, partly because participation is restricted to sophisticated investors, narrowing the pool of potential buyers. This has weighed on liquidity and made the market less appealing to companies seeking growth capital or offering earlier investors an exit, according to industry players.

To revitalise the LEAP Market, Bursa Malaysia is proposing to allow retail investors to participate in a market that currently caters only for sophisticated investors. Retail participation will be subject to a total investment limit of RM250,000 at any time, with caps of RM100,000 per issuer in the primary market and RM100,000 per broker in the secondary market.

A smoother transfer framework from LEAP to the ACE Market is also being proposed. Under the current framework, a LEAP-listed company seeking to transfer to ACE must withdraw its LEAP listing and provide an exit offer or exit mechanism to shareholders. Bursa is proposing to remove this requirement to reduce cost, time and administrative complexity for eligible companies that have spent at least two years on LEAP.

A LEAP-listed company may be delisted if it fails to apply for a transfer to the ACE Market by the expiry of seven full financial years after admission or if its transfer application is rejected.

Bursa’s proposed LEAP Market changes have generated excitement among industry players because they could transform ECF from a one-off fundraising channel into the first stage of a broader capital market journey.

Yet, many companies struggle to progress beyond that stage, according to industry players interviewed by Wealth. While they may have raised their first few million ringgit through ECF and built meaningful operating traction, they are often still too small or too early for an ACE Market listing. At the same time, the LEAP Market has lacked the activity and liquidity to serve as a natural intermediary step.

Goh Boon Peng, CEO of MyStartr, says: “ECF has been around for more than 10 years, and more than 400 companies have raised funds. But after fundraising, they are still private. Only two companies have gone to Nasdaq, and only one has gone to the LEAP Market.” The former were Agroz Inc and Sagtec Global Ltd; the latter, CC International Bhd.

This means many companies remain private even after several ECF rounds, with limited options beyond waiting for a future ACE Market listing, foreign listing, trade sale or share buyback.

“Prior to this, after ECF, many small and medium enterprises (SMEs) and growth companies would find themselves having to bridge a ‘capital gap’. They are not big enough or not institutionally connected enough to take a traditional initial public offering (IPO) path. The proposed framework will address such a gap between private fundraising and the public market,” says Sam Shafie, CEO and co-founder of pitchIN.

Bikesh says Vircle is an example of the kind of company that could benefit from listing on the LEAP Market. “The challenge is scaling. Many regional growth investors would typically expect to see a company like Vircle operating across multiple markets before considering a larger Series-A or growth-stage investment. Expanding regionally requires capital. Historically, companies often had to rely on a small number of institutional investors to fund that growth,” he says.

“What LEAP potentially offers is a different path. Instead of waiting for a single VC or growth fund to finance the next stage, successful companies could access public growth capital, allowing existing investors and new public investors to participate in that expansion journey.”

Meanwhile, the proposed ECF-to-LEAP pathway comes as VC-backed ECF deals are gaining attention. For example, investors could get access to VC-backed, later-stage private companies through ECF platforms under the Malaysia Co-Investment Fund’s VC/PE Profit-Sharing Incentive. Gobi Partners and OSK Ventures International Bhd are the first two VCs to publicly commit under the framework.

Hartamodal Sdn Bhd, the VC arm of boutique asset management firm Tradeview Capital Sdn Bhd, is in discussions with pitchIN.

Not all VC firms are expected to use LEAP as an exit point, though. Justin Lim, managing partner of NEXEA, says the likely exit candidates for the firm would generally need at least RM40 million in capital or exit size, making the ACE and Main Markets or a larger private equity route more relevant than LEAP. NEXEA has four companies that could be exit candidates.

For Hartamodal, the liberalisation of the LEAP Market with the inclusion of retail investors is a selling point. If retail investors are allowed in, the market could become more viable for companies that need growth capital and want to build a public-market track record before eventually transferring to ACE, says its executive director Tan Cheng Wen.

The firm’s main focus remains on larger exits such as ACE, the Main Market or trade sales. Meanwhile, for companies that are profitable and growing, yet still below the level usually expected for ACE, LEAP could provide an interim step to raise growth capital, attract retail investors and build a public-market track record before eventually moving up, adds Tan.

Bikesh says, however, that LEAP should be seen as a stepping stone rather than a final destination for ECF investors. While they can exit their investments, they should consider staying invested to participate in the company’s next stage of growth.

“If retail investors are already allowed to invest in ECF companies, which are often earlier-stage and riskier, then it is reasonable to allow them to invest in companies that have successfully progressed beyond that stage and become LEAP-listed. In many cases, LEAP companies may actually present lower risk profiles than early-stage ECF issuers,” he adds.

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