Malaysia's Securities Commission (SC) calls for a deeper pool of capital and greater investor involvement to help establish the country as a startup hub, its chairman, Awang Adek Hussin, announced. Recognising startups and SMEs as vital GDP contributors, he emphasised the need to bridge the financing gap these businesses face. Traditional bank loans often fall short in fulfilling these firms' needs, while high risks and low survival rates deter financial institutions. The chairman pointed to capital market financing as a viable solution, promoting growth and potential stock exchange listing. Despite government commitment and initiatives like the MYR40bn allocation to MSMEs in the revised 2023 Budget, fundraising challenges persist. Matching fund programmes, he stated, are successful in drawing private investors, aiding startups, and serving as community builders.
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