The Ministry of Entrepreneur Development and Cooperatives (KUSKOP), through SME Corp. Malaysia, has on Thursday launched the PKS@BURSA Program, a strategic initiative aimed at helping small and medium enterprises (SMEs) access the capital market through listing on Bursa Malaysia.

The Minister of Entrepreneur Development and Cooperatives, Steven Sim Chee Keong said in a statement that the government has allocated MYR 50 million ($12.39 million) for the program until 2030, targeting 200 SMEs to build a stronger pipeline of companies that are ready for future listing.

According to Sim, companies participating in PKS@BURSA are also eligible for rebates of up to 20 percent if they are successfully listed on Bursa Malaysia within five years.

This is intended to help reduce listing preparation costs and encourage more high-potential SMEs to access the capital market.

“PKS@BURSA is designed to address two key challenges faced by growing companies, namely the cost of listing preparation and the capability requirements needed to enter the capital market,

“Through this program, we want to provide a clearer pathway for Malaysian SMEs with growth potential to expand their operations and ultimately gain access to growth capital through Bursa Malaysia,” he said when speaking at the “Road to IPO” program organized by Credit Guarantee Corporation Malaysia Berhad (CGC).

Sim also said CGC’s financing guarantee schemes have helped bridge the financing gap often faced by growing companies before they are ready to access the capital market and proceed towards listing.

He noted that to date, CGC has approved financing of about MYR 300 million ($74.31 million) to help local companies grow and strengthen their position on the path towards listing.

It is noted that the PKS@BURSA program comprises two main components.

The first component is the SME Listing Fund, which offers financing ranging from MYR 2 million ($500,000) to MYR 5 million ($1.24 million) at an interest rate of 5 percent per annum for up to five years.

The financing can be used for working capital, capital expenditure, and corporate funding needs related to listing preparation.

Companies that are successfully listed on Bursa Malaysia within five years are also eligible for rebates of up to 20 percent.

The second component is the SME Capacity and Capability Development Program, which provides structured training, seminars, workshops, roadshows, as well as one-to-one advisory support involving listing advisors, auditors, tax agents, and corporate governance experts.

The program also provides coaching and training on corporate governance, compliance, and capital market readiness, in collaboration with CGC, Bursa Malaysia, and other ecosystem partners.

Companies eligible to participate must have at least a three-star SCORE rating by SME Corp. Malaysia, demonstrate positive and stable financial performance, and show readiness to proceed with a listing on Bursa Malaysia.

Sim said PKS@BURSA supports the government’s aspirations under the 13th Malaysia Plan to strengthen the country’s capital market ecosystem and expand access to growth financing for local enterprises.

“Malaysia has never lacked entrepreneurs or businesses. The next challenge is to help more companies move up the value chain, grow into national champions, and compete at a higher level,

“Our goal is not just to produce more listed companies, but to produce more companies that are capable of being listed. PKS@BURSA is one of the pathways to achieving that goal,” he added.

Malaysia steps up push into IC design, advanced packaging and other high-value technologies