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THE Malaysian capital market is set for a significant shake-up after the Securities Commission Malaysia (SC) and Bursa Malaysia unveiled sweeping proposals to transform the LEAP Market into a more accessible fundraising platform for micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs).
The proposed reforms, announced under the LEAP Market 2.0 initiative, are designed to ease the transition for emerging companies seeking to raise funds through the public market, while broadening investor participation and reducing regulatory friction for smaller firms.
The initiative follows the LEAP Market 2.0 announcement made by Finance Minister II Datuk Seri Amir Hamzah Azizan in March 2026 and forms part of wider efforts to strengthen financing access for MSMEs through Malaysia’s capital market ecosystem.
SC chairman Datuk Mohammad Faiz Azmi described the proposals as a major step towards building a more inclusive market structure for smaller companies.
“It reinforces our funding escalator, lowering costs, while improving access to growth capital through a more facilitative regulatory environment,” he said.
He noted that the reforms align with the SC’s Capital Market Masterplan 2026-2030 and the regulator’s five-year roadmap aimed at catalysing MSME and MTC participation in capital markets.
“To date, one 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.
“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 added.
A key feature of the proposed reforms is the creation of an alternative listing pathway for companies backed by equity crowdfunding (ECF), venture capital (VC) and private equity (PE) firms.
Under the new framework, eligible ECF issuers with an established fundraising record would be allowed to apply for listing on the LEAP Market without appointing an approved adviser. Instead, ECF platform operators or VC and PE firms would be permitted to act as listing agents when dealing with Bursa Malaysia.
These listing agents would also be responsible for helping companies prepare for public market participation through education and training programmes.
The proposals also seek to simplify disclosure requirements by introducing a streamlined disclosure document format intended to improve clarity, consistency and standardisation, while preserving essential information needed for informed investment decisions.
In a further shift, retail investors would be permitted to participate in the LEAP Market for the first time, ending its current restriction to sophisticated investors only.
Retail participation would be capped at RM250,000 in total investments at any one time, including limits of RM100,000 per issuer in the primary market and RM100,000 per broker in the secondary market.
Another proposal would allow advisers to receive up to half of their advisory fees through ordinary shares in applicant companies. Safeguards under the proposal include a 2% shareholding cap per adviser, a collective limit of 5% for all advisers, and a six-month moratorium on share disposals.
The LEAP Market-to-ACE Market transfer process is also set to be streamlined, with the removal of mandatory withdrawal of listing and exit offer requirements for eligible companies seeking migration after at least two years on the LEAP platform.
Bursa Malaysia Chief Executive Officer Datuk Fad’l Mohamed said the reforms were intended to deepen market participation while preserving investor safeguards.
“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,” he said.
“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.”
Bursa Malaysia has launched a public consultation on the proposed amendments to the LEAP Market and ACE Market Listing Requirements, with feedback open until 15 June 2026. - May 19, 2026