Three more SMEs to be listed on LEAP market by year-end

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KUALA LUMPUR: At least three more small and medium enterprises (SMEs) are expected to be listed on Bursa Malaysia Bhd’s Leading Entrepreneur Accelerator Platform (LEAP) market by year-end, said chief executive officer, Datuk Seri Tajuddin Atan.

He noted that following Singapore information-technology solutions provider, Cloudaron Group Bhd’s listing on the market recently, Bursa Malaysia realised that the rest of the candidates were not ready to follow suit.

“There are some issues that need to be addressed by these companies before going for listing. To be listed it is more than just doing business. You should organise your business and iron out matters such as the company structure or tax matters,” he said.

Leap, launched three months ago, is an alternative platform for SMEs to raise capital despite lacking a financial track record.

So far, 11 SMEs are said to be in the pipeline for listing.

Commenting on investors for the LEAP market, Tajuddin stressed that they are aware of the risks involved, and the fact that it is not for institutional investors.

“The Retirement Fund Incorporated (KWAP), the Employees Provident Fund (EPF), Permodalan Nasional Bhd or Government-Linked Investment Companies (GLICs),  should not be putting money in the LEAP market as they are custodians of public funds.

“So, those who want to invest here (LEAP) is for people who have money, have a high net worth and want to take a little bit more risk,” he told reporters on the sidelines of Focus Malaysia’s Best Under Billion Award 2017 here recently.

He said investors in this market are also investment savvy, those who have invested before and know that they can make more (money) and aware that investors protection is not for them.

SMEs represent 98.5 per cent of business establishments in Malaysia. Meanwhile, the Best Under Billion Award 2017 is aimed at recognising local companies that put up an impressive performance. — Bernama