Businesses in Malaysia must begin planning and preparing now to be able to leverage the opportunities that come with the eventual post-pandemic recovery.
Among the factors to be considered are production capacity, resources and investments which all require funding which is what the businesses will have to begin securing.
“One of the funding avenues for businesses to grow, beyond the traditional source of banks, is to leverage the capital market funds and the ELEVATE programme will provide them with the tools and training to help them do that,” said Zalina Shamsudin, General Manager for Capital Markets Malaysia (CMM) which is providing the training.
“Funding is a key element for businesses to be able to ride the recovery wave or help them to reach the recovery period and our objective is to elevate their game to become
investment-ready for fundraising through the capital market,” added Zalina.
The 12-month ELEVATE programme from CMM – an affiliate of the Securities Commission Malaysia (SC) – is tailored specifically to coach and mentor companies within the mid-tier segment of Malaysia’s economy that have the potential to grow their businesses to the next level.
Mid-tier companies are defined by Malaysia External Trade Development Corporation (MATRADE) as manufacturing sector enterprises with annual revenues of RM 50 million to RM 500 million, and service sector enterprises with annual revenues of RM 20 million to RM 200 million.
Funded in part by the Capital Market Development Fund (CMDF), ELEVATE provides guidance on business redesign strategies, fundraising models and access to financing through the capital market.
The modules cover how to rebrand, innovate new operational and market development solutions, value the business and attract investors.
Enterprises that will benefit from it include family-run businesses now in their second and third generation, entrepreneurs that are looking new investors for growth, to sell or IPO and need guidance on valuation, as well as those that need to improve their financial framework.
They will be taught how to enhance business innovation for market impact, value creation, and speed as well as how to develop a roadmap for the best fundraising options for the business.
The importance of branding and recognising the importance of branding, understanding key elements of business management and corporate integrity such as legal principles, governance and ethics are also included in the programme.
Complementing that are modules on how to evaluate a company’s current structure, financials and internal controls to produce an effective road map with detailed steps to professionalise the business, optimise a business plan and equity story that will entice investors.
Commenting on the ELEVATE programme ahead of its pioneer intake, President of the Malaysian Consortium of Mid-Tier Companies (MCMTC) Callum Chen said, “Many mid-tier companies are working their way towards Listing, but without proper knowledge about the Listing Process, Valuation of their Company, Options on Funding, SC Compliance, Investor's Expectations etc, which many companies subsequently regret not having prior knowledge of before embarking on their Listing Exercise.”
“The "Elevate" program provided by CMM is indeed very timely and looking back many listed company bosses probably wished that the elevate program was around when they were thinking of listing.”