The Securities Commission Malaysia (SC) and Bursa Malaysia Securities Berhad (Bursa Malaysia) today propose enhancements to Bursa Malaysia’s LEAP Market, the main platform for early-stage and emerging companies.
These proposed enhancements follow the LEAP Market 2.0 announcement made by Finance Minister II Datuk Seri Amir Hamzah Azizan in March 2026. They form part of a broader effort to improve access to financing for micro, small and medium enterprises (MSMEs) and support their growth through Malaysia’s capital market ecosystem.
The LEAP Market 2.0 initiative will strengthen the value proposition of the platform to facilitate more seamless fundraising for smaller businesses and mid-tier companies (MTCs) from private to public markets.
The initiative supports the objectives under the SC’s Capital Market Masterplan 2026- 2030 (CMP) and aligns with the SC’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028). It also complements the national MSME and MTC development agenda.
SC Chairman Datuk Mohammad Faiz Azmi said the move represents a major step in building a more inclusive capital market for MSMEs and MTCs under the CMP. “It reinforces our funding escalator, lowering costs, while improving access to growth capital through a more facilitative regulatory environment,” he said.
“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.
The proposed enhancements under LEAP Market 2.0 include:
- Alternative fundraising pathway for ECF-Funded and VC/PE-Backed Companies
Companies seeking admission to the LEAP Market are currently required to appoint an approved adviser. Under LEAP Market 2.0, eligible ECF issuers with a proven fundraising track record can transition more seamlessly to the LEAP Market through an alternative admission route.
Eligible ECF issuers may submit listing applications without an approved adviser, with ECF Registered Market Operators (ECF-RMOs) or Venture Capital and Private Equity (VC/PE) firms acting as listing agents to liaise with Bursa Malaysia.
In addition, the listing agents will also support these ECF issuers through capacity-building programmes, including education and training, to help them progress to the public market.
- Simplified disclosure document
Under LEAP Market 2.0, an alternative disclosure document will be introduced, focusing on a simplified format while retaining essential information required to support informed investment decision-making.
This simplified and structured format is designed to enhance clarity, improve consistency and facilitate greater standardisation across submissions. This approach aims to ease access to the market while maintaining the quality and integrity of disclosures for investors.
- Broader investor participation
Retail investors will be allowed to participate in the LEAP Market, which currently caters exclusively to sophisticated investors. Participation will be subject to a total investment limit of RM250,000 at any point in time, including a cap of RM100,000 per issuer in the primary market and RM100,000 per broker in the secondary market.
- Share-based payment to advisers
A share-based payment option will be introduced, allowing advisers to receive up to 50 per cent of their advisory fees in the form of ordinary shares of the applicant. This will be subject to appropriate safeguards, including a maximum shareholding limit of 2 per cent per adviser, an aggregate cap of 5 per cent for all advisers, and a six-month moratorium on the disposal of such shares.
- Seamless transfer from LEAP Market to ACE Market
The transfer framework from the LEAP Market to the ACE Market will be enhanced by removing the existing mandatory withdrawal of listing and exit offer requirement to improve efficiency for companies eligible to transfer after a minimum of two years on the LEAP Market.
Bursa Malaysia’s Chief Executive Officer, Datuk Fad’l Mohamed said, “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. 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 issued a public consultation paper today, 18 May 2026, to seek public feedback on the proposed enhancements made pursuant to LEAP Market 2.0. Views and feedback from the public on the proposed amendments to the LEAP Market and ACE Market Listing Requirements are to be made through the following link: https://www.bursamalaysia.com/regulation/public_consultation. The public consultation closes on 15 June 2026.
