Muhyiddin: Securities Commission to improve regulations based on current developments

KUALA LUMPUR: The Securities Commission (SC) will improve its regulations based on current developments, including raising the fundraising limit to RM20 million from RM10 million, to ensure that alternative financing continues to grow.

Prime Minister Tan Sri Muhyiddin Yassin said to boost alternative financing, the SC will also introduce public equity funding which will be extended to unlisted public limited companies.

He added that listing-related fees would also be waived for 12 months for companies applying for listing in the primary, LEAP or ACE markets to further encourage companies to raise funds via the stock market.

"Additionally, rebates for annual listing fees for 2021 will also be given to listed companies that have reported losses based on their quarterly reports," said Muhyiddin in announcing the Strategic Programme to Empower the People and Economy (PEMERKASA) today.

To help reduce the burden of companies that are facing financial problems and at the risk of winding up, the prime minister said the Companies Commission of Malaysia (SSM) had agreed to raise the indebtedness threshold to RM50,000 from RM10,000 previously.

At the same time, the SSM will also provide free business registration facilities to the B40 group and full -time students of higher education institutes who wish to venture into entrepreneurship.

"The government is aware that the cooperatives are also affected due to the COVID-19 pandemic.

"As such, the Malaysia Co-operative Societies Commission of Malaysia (SKM) will provide financing incentives of up to RM100,000 without the need for collateral to help the affected cooperatives," said Muhyiddin.

He added that the funding application would be simplified and the approval process would be expedited, and the SKM will also provide repayment flexibility for six months upon approval of the funding.

Muhyiddin said a total of RM50 million from the SKM's Revolving Capital Fund would be allocated to help more than 14,000 cooperatives.

Meanwhile, the Digitalisation Matching Grant under Bank Simpanan Nasional which was previously utilised by companies has also been extended to cooperatives to expand their business activities through digital platforms.

-- BERNAMA