Overview:
- SC aims to balance market regulation with market development through a 5-year MSME Roadmap.
- The roadmap focuses on three pillars: regulatory framework, infrastructure building, and capacity building.
- SC’s role is to enable strategic collaboration across stakeholders to close the $40 billion funding gap for MSMEs and mid-tier companies.
- Success will be measured by MSMEs’ sustainability, scalability, and resilience in accessing funds and competing regionally.
- The roadmap adopts a whole-of-nation approach to reach 1.2 million MSMEs, which contribute 75% of GDP and over 60% of employment.
Securities Commission Malaysia (SC) has unveiled a five-year MSME Roadmap aimed at closing a RM40 billion funding gap and strengthening the backbone of Malaysia’s economy: micro, small, and medium enterprises (MSMEs) and mid-tier companies that make up 97% of all businesses.
A Whole-of-Nation Approach
The roadmap focuses on three pillars: regulatory framework, infrastructure building, and capacity development. SC plans to complete the “funding escalator” by improving access to both public and private markets, while digital platforms and data-sharing initiatives will form the infrastructure backbone. Capacity-building programs will target MSMEs and the wider ecosystem to raise awareness of capital market options.
“MSMEs and mid-tier companies contribute 75% of GDP and over 60% of employment. If they don’t do well, it will create challenges for economic growth and the IPO pipeline,” Datin Azalina Adham, Managing Director of SC told BackgroundBriefing.news
Why It Matters
Malaysia’s MSMEs are critical to national stability, yet they face structural barriers to funding. The capital market currently covers only RM7 billion of the RM40 billion gap. SC’s roadmap aims to bridge this shortfall by fostering collaboration across regulators, industry players, and technology providers.
Measuring Success
SC will track progress through three outcomes: sustainability of MSME business models, ability to scale regionally, and resilience in competitive markets. “We want companies not just to sustain but to scale and be a lot more resilient,” Datin Azalina told BackgroundBriefing.news.
The Stakes
With 1.2 million MSMEs driving nearly three-quarters of GDP, the roadmap is more than a policy—it’s a lifeline for Malaysia’s economic future.
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About the speaker:
Datin Azalina Adham
Managing Director
Securities Commission Malaysia
Datin Azalina Adham was appointed Managing Director of Securities Commission Malaysia on 1 January 2023, having joined as Executive Director, Strategy and Policy, on 1 July 2022. She possesses over 29 years of diverse experience across financial and capital markets, including investment banking, corporate finance, and the exchange business. Prior to her current role, she served as Chief Operating Officer of Bursa Malaysia Berhad from February 2017 to February 2020, where she led transformational initiatives such as Bursa Marketplace and the LEAP Market. Her career also includes roles at Maybank Investment Bank and Alliance Investment Bank. Datin Azalina has also served as an Independent Non-Executive Director on several public listed company boards and Ministry of Finance Incorporated companies. She holds a Bachelor of Science from Purdue University and completed the Advanced Management Programme at Harvard Business School.
FAQs:
1. What is the MSME Roadmap introduced by SC?
The MSME Roadmap is a 5-year strategic plan designed to improve funding access for micro, small, and medium enterprises (MSMEs) and mid-tier companies through regulatory reforms, infrastructure development, and capacity building.
2. Why is SC involved in this initiative?
SC brings regulatory expertise and the ability to coordinate a whole-of-nation approach, fostering collaboration among stakeholders to close the funding gap and strengthen the MSME ecosystem.
3. What are the three main pillars of the roadmap?
The roadmap focuses on:
(1) Regulatory Framework – completing the funding escalator for public and private markets.
(2) Infrastructure Building – enabling digital adoption and data access.
(3) Capacity Building – educating MSMEs and the ecosystem on capital market options.
4. How will success be measured?
Success will be measured by MSMEs’ ability to sustain their businesses, scale regionally, and remain resilient through improved access to funding and competitive capabilities.
5. Why is this roadmap important for Malaysia’s economy?
MSMEs and mid-tier companies make up 97% of Malaysian enterprises, contribute 75% of GDP, and account for over 60% of employment. Their growth and resilience are critical for economic stability and IPO pipeline development.
6. What is the current funding gap for MSMEs?
The funding gap is estimated at RM40 billion, while the capital market currently covers only RM7 billion. The roadmap aims to bridge this gap within five years.
7. How will SC reach over 1.2 million MSMEs?
The roadmap adopts an inclusive, whole-of-nation approach, leveraging partnerships for capacity building, digital platforms for infrastructure, and regulatory enhancements to simplify fundraising processes.
8. What role does infrastructure building play?
Infrastructure building focuses on digital adoption, data accessibility, and referral platforms to help MSMEs connect with funding sources efficiently.
9. How does capacity building address language and outreach challenges?
Capacity building involves workshops, awareness programs, and ecosystem education to overcome communication barriers and ensure MSMEs understand capital market opportunities.
10. How will the roadmap help MSMEs deal with external challenges like tariffs?
By reducing regulatory friction, improving infrastructure, and strengthening business capabilities, the roadmap aims to make MSMEs more nimble and competitive in uncertain global conditions.
5W1H summary
| Category | Details |
| Who | 1. Datin Azalina Adham 2. Securities Commission MD 3. Former Bursa COO |
| What | 1. Appointed Managing Director 2. Diverse financial market experience 3. Led transformational initiatives |
| When | 1. MD since 1 Jan 2023 2. ED since 1 July 2022 3. COO Feb 2017-Feb 2020 |
| Where | 1. Securities Commission Malaysia 2. Bursa Malaysia Berhad 3. Maybank Investment Bank |
| Why | 1. Extensive capital market experience 2. Strategic and transformation expert 3. Strong stakeholder network |
| How | 1. Career progression in finance 2. Senior leadership roles held 3. Independent board directorships |
Transcript of Conversation
One of the things that SC is looking to do is we have two roads which is regulating the market but also developing the market. We have launched something called the MSME Road Map. It’s a 5-year road map. It looks at developing greater access of funding for the SMEs and MTC’s in three ways. The first is looking at regulatory framework. What can be done there? The second is looking at infrastructure building for them. And the third is capacity building. Those are the three things.
And why SC? What does SC bring to this conversation?
One of the key things SC can do and under the Road Map it takes a whole of nation approach. It brings together a strategic collaboration between the many players. Coming back to the first three things that I mentioned to you about in terms of regulatory framework that’s something a little bit more up SC’s alley looking at the rules of building a funding escalator whether it’s the LEAP market or the ACE market. The second is an infrastructure building that looks at data, access to data, looking at digital or referral platforms and solutions that may not necessarily belong to the SC alone. The third capacity building is about capacity building for SMEs but also for the ecosystem understanding the needs of SMEs. What SC can do is bridging that together towards that end goal of closing the funding gap.
And how will you measure your success?
One thing that’s important to understand is why people would ask is this important? SMEs and MTCs make up 97% of all enterprises in Malaysia, accounts for over 60% of GDP, as well as more than 60% of employment. If they don’t do well, it’ll be a lot of challenges for us in terms of IPO pipeline, in terms of economic growth. Our measure of success would be, number one, having the SMEs be a lot more sustainable, business models or their ability to scale is the second one, and the third and probably most critical for us is resiliency in being competitive, being able to have access to funds and be able to look at other things and competitiveness that we need to look at.