SC opens capital-market funding route for chipmakers
KUALA LUMPUR: The Securities Commission (SC) has launched a nationwide roadshow to help micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) in strategic industries tap capital market funding to expand and scale up.
The Securities Commission (SC) in Malaysia has introduced a nationwide roadshow to assist micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) in strategic industries in accessing capital market funding for expansion and scaling up. The inaugural roadshow, titled "Powering SemiCons: Financing Your Next Breakthrough," took place in Penang and hosted over 150 participants from the semiconductor and capital market sectors.
The primary objective of this initiative is to provide semiconductor companies and their supply-chain partners with enhanced visibility into alternative fundraising options beyond conventional bank loans. As these companies invest in expansion, technology adoption, and innovation, they require diverse financing avenues to support their growth at various stages, from startups to public listings and regional expansion.
Funding options offered through this platform include equity crowdfunding, peer-to-peer financing, venture capital, private equity, private debt, and public market investments. Collectively, these alternatives form a "funding escalator" that can cater to the evolving financing needs of semiconductor companies throughout their growth journey.
SC Chairman Datuk Mohammad Faiz Azmi emphasized that as semiconductor companies progress along the value chain, accessing suitable financing becomes increasingly crucial. The capital market can help bridge this financing gap by presenting companies with a broader spectrum of funding options beyond traditional banking loans, he stated.
Examples of such initiatives include the New Industrial Master Plan 2030 Strategic Co-Investment Fund (NIMP CoSIF), equity crowdfunding (ECF), and peer-to-peer (P2P) financing. As of the end of July, NIMP CoSIF had facilitated RM221.23 million in public-private fundraising for 42 Malaysian companies.
The SC announced that additional roadshows will be conducted in key industry hubs, such as Selangor, to connect high-growth companies with the available funding opportunities.
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