SC: Malaysian companies can access Hong Kong market via new simultaneous listing framework

GEORGE TOWN, Aug 19 — Malaysian companies seeking to make initial public offerings (IPOs) will now have the option to list their shares simultaneously in both Malaysia and Hong Kong using a unified submission process, according to the Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi. This framework, which includes recognizing prospectuses from both markets, aims to streamline the process and reduce costs for companies aiming to access regional and global investors.

During the "Powering SemiCons: Financing Your Next Breakthrough" event, Faiz emphasized that companies contemplating an IPO should consider the strategic benefits of listing shares in Hong Kong concurrently. Under the new arrangement, a single set of submission documents, including a prospectus reviewed in Malaysia, will suffice for simultaneous primary and secondary listings in both jurisdictions, eliminating the need for additional documentation work in Hong Kong.

Faiz highlighted that this initiative is significant as it represents Hong Kong's tacit acknowledgment of Malaysia's capital-market regulations as equivalent to its own. The move aligns with the SC's Capital Market Masterplan 2026-2030, which seeks to create regional opportunities for Malaysian firms.

Some companies have previously expressed concerns that local investors may not fully grasp their operations or prioritize immediate profitability over long-term market share. Additionally, they have noted that Bursa Malaysia may not offer sufficient international exposure. Faiz aimed to address this by encouraging companies to explore listing opportunities in Hong Kong alongside their Malaysia listings.

Addressing the semiconductor sector, Faiz stressed the need for tailored financing solutions as companies invest in intellectual property, commercialize technology, and expand globally. He recommended that early-stage companies consider equity crowdfunding (ECF), peer-to-peer (P2P) financing, and venture capital, while established firms might find the equity market, corporate bonds, and sukuk more suitable.

The platform aims to provide better visibility into the capabilities and financing needs of the semiconductor ecosystem through business-matching sessions.

Faiz underscored that strategic support from investors can be invaluable, offering guidance, stronger governance, industry networks, and access to new customers and opportunities. He cited the New Industrial Master Plan 2030 Strategic Co-Investment Fund (NIMP COSIF), which provides 70% of financing through government investment, with the remaining 30% sourced from private investors.

This collaborative approach, through equity crowdfunding and peer-to-peer platforms, can help catalyze private investment in strategic industries, reaffirming the SC's commitment to an inclusive and innovative capital market.