Grow Local Businesses by Listing on Bursa Malaysia
KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA) recently organised a forum themed “Grow Your Business, List on Bursa” in conjunction with its 50th anniversary.
The half day forum, at the MIDA headquarters here, was held in collaboration with Bursa Malaysia Berhad and focused on listing opportunities on Bursa.
Deputy Minister of International Trade and Industry, Datuk Ahmad Maslan who offciated the forum, said it was timely and in line with the Government’s ongoing efforts to increase the competitiveness of local players.
“We want more local companies to integrate into the international supply chain and become global champions. As the world is being shaped by new and emerging technologies, domestic players need to align themselves by adopting new processes and different ways of doing business. This can be done through automation, robotics and other smart technologies,” he said.
Ahmad said this would require businesses to invest in new technologies, upgrade talents as well as research & development activities.
He said making a company public was not only about selling stock, but also serves as a testament to the success and long-term viability of the company.
“The process of being listed may require much commitment but the payoff is surely worth the effort. This includes raising strategic financial assets, which benefit businesses in accessing funds for further growth and expansion, he said.
Based on MIDA’s records, there are more than 300 private companies in Malaysia which meet the prerequisite for listing on Bursa Malaysia’s Main Board. These companies which have registered an uninterrupted profit after tax of more than RM20 million for a period of 3 to 5 full financial years, have yet to take advantage of being listed.
MIDA deputy CEO Datuk N. Rajendran said in line with the country’s progress towards Industry 4.0, it is vital for companies to have the capacity to expand, and make way to the boards of the stock exchange can be beneficial for them to tap into more capital.
“We believe the government cannot continuously support the expansion and reinvestment of existing companies by providing them incentives and grants, although it is still available,” said Rajendran.
He said said MIDA shares the same commitment as Bursa Malaysia to help businesses scale new heights.
“This year marks five decades of MIDA’s commitment in transforming the nation under different phases of industrial development. Despite being half a century old, MIDA’s priority remains the same. We are here to ensure that Malaysia achieves its goals and aspirations to become a high-income nation. We continue to focus on developing a conducive environment for businesses to thrive,” he said.
Speaking at the same event, Bursa Malaysia chief commercial officer Selvarany Rasiah said while a listing exercise would give companies access to capital, it also helps with boosting its profile.
“A lot of companies underestimate the value of listing their profile,” she said.
The event featured a line-up of prominent speakers from the investment, financial and industrial segments, namely MIDF Amanah Investment Bank, Cheang & Arif, and Deloitte. Topics covered were ‘Getting Ready – How to Avoid Pitfalls?’ and ‘Listing Opportunities in Bursa Malaysia’.
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