The Securities Commission Malaysia (SC) and Bursa Malaysia Securities Berhad (Bursa Malaysia) have on Monday proposed enhancements to Bursa Malaysia’s LEAP Market, the main platform for early-stage and emerging companies.
These proposed enhancements follow the LEAP Market 2.0 announcement made by Finance Minister II Datuk Seri Amir Hamzah Azizan in March 2026, the duo said in a statement.
They form part of a broader effort to improve access to financing for micro, small and medium enterprises (MSMEs) and support their growth through Malaysia’s capital market ecosystem.
The LEAP Market 2.0 initiative will strengthen the value proposition of the platform to facilitate more seamless fundraising for smaller businesses and mid-tier companies (MTCs) from private to public markets.
The initiative supports the objectives under the SC’s Capital Market Masterplan 2026-2030 (CMP) and aligns with the SC’s Catalyzing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028). It also complements the national MSME and MTC development agenda.
SC Chairman Mohammad Faiz Azmi said the move represents a major step in building a more inclusive capital market for micro, small, and medium enterprises (MSMEs) and mid-tier companies (MTCs) under the CMP.
He said it reinforces their funding escalator, lowering costs, while improving access to growth capital through a more facilitative regulatory environment.
“To date, one equity crowdfunding (ECF) issuer has transitioned to the LEAP Market, while 10 LEAP Market listed companies have migrated to the ACE Market, demonstrating the potential for a stronger and more sustainable pipeline of companies progressing through the capital market,” he said.
He added Malaysia has a strong pool of addressable candidates for capital market fundraising with approximately 8,500 MTCs.
“The proposal enables a visible and smoother listing pathway for MTCs and MSMEs,” he said.
The proposed enhancements under LEAP Market 2.0 include alternative fundraising pathway for ECF-Funded and venture capital (VC)/private equity (PE)-Backed Companies.
SC said companies seeking admission to the LEAP Market are currently required to appoint an approved adviser, and under LEAP Market 2.0, eligible ECF issuers with a proven fundraising track record can transition more seamlessly to the LEAP Market through an alternative admission route.
Besides, eligible ECF issuers may submit listing applications without an approved adviser, with ECF Registered Market Operators (ECF-RMOs) or Venture Capital and Private Equity (VC/PE) firms acting as listing agents to liaise with Bursa Malaysia.
In addition, the listing agents will also support these ECF issuers through capacity-building programs, including education and training, to help them progress to the public market.
The proposed enhancements also simplifies disclosure document. Under LEAP Market 2.0, an alternative disclosure document will be introduced, focusing on a simplified format while retaining essential information required to support informed investment decision-making.
This simplified and structured format is designed to enhance clarity, improve consistency and facilitate greater standardization across submissions. This approach aims to ease access to the market while maintaining the quality and integrity of disclosures for investors.
The proposed enhancements also include broader investor participation, as retail investors will be allowed to participate in the LEAP Market, which currently caters exclusively to sophisticated investors.
Participation will be subject to a total investment limit of MYR 250,000 ($63,091) at any point in time, including a cap of MYR 100,000 ($25,237) per issuer in the primary market and MYR 100,000 ($25,237) per broker in the secondary market.
The proposed enhancements also include share-based payment to advisers. A share-based payment option will be introduced, allowing advisers to receive up to 50 percent of their advisory fees in the form of ordinary shares of the applicant.
This will be subject to appropriate safeguards, including a maximum shareholding limit of 2% per adviser, an aggregate cap of 5 percent for all advisers, and a six-month moratorium on the disposal of such shares.
The enhancements also include seamless transfer from LEAP Market to ACE Market. The transfer framework from the LEAP Market to the ACE Market will be enhanced by removing the existing mandatory withdrawal of listing and exit offer requirement to improve efficiency for companies eligible to transfer after a minimum of two years on the LEAP Market.
Bursa Malaysia’s Chief Executive Officer, Dato’ Fad’l Mohamed said the proposed enhancements build on the LEAP Market’s role as an established entry point into the public market for MSMEs and MTCs.
“These enhancements introduce greater flexibility in admission pathways, more streamlined disclosures and broader investor participation,
“Together, these measures are aimed at supporting MSMEs and MTCs as they participate in and grow through the capital market, while strengthening capital formation, reinforcing market depth and transparency, and maintaining appropriate standards of investor protection for a qualified market,” he added.