Businesses must plan post pandemic recovery strategies
KUALA LUMPUR: Businesses in Malaysia must begin planning and preparing now to be able to leverage the opportunities that come with the eventual postpandemic recovery.
Capital Markets Malaysia (CMM) general manager Zalina Shamsudin said this is because investors would consider varieties of aspects such as production capacity, resources and investments which all require funding.
“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,” she said in a statement yesterday.
Zalina said funding is a key element for businesses to be able to ride the recovery wave or help them reach the recovery period and CMM’s objective is to elevate their game to become investment-ready for fundraising through the capital market.
“Elevate which is a 12-month programme by 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,” she said.
Funded in part by the Capital Market Development Fund, Elevate provides guidance on business redesign strategies, fundraising models and access to financing through the capital market. Zalina said through capital market, enterprises, including family-run businesses now in their second and third generation, and entrepreneurs that are looking new investors for growth, will benefit from it.
“However, to sell or conduct an initial public offering needs guidance on valuation, as well as those (especially mid-tier companies) that need to improve their financial framework,” she said.
Mid-tier companies are defined by the Malaysia External Trade Development Corporation as manufacturing sector enterprises with annual revenues of RM50 million to RM500 million, and service sector enterprises with annual revenues of RM20 million to RM200 million.
“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,” she said.