LEAP Market 2.0: SC and Bursa Malaysia’s Proposed Enhancements

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The Securities Commission Malaysia (SC) and Bursa Malaysia Securities Berhad (Bursa Malaysia) had on 18 May 2026 announced the proposed enhancements to the listing rules for Leading Entrepreneur Accelerator Platform of Bursa Malaysia (LEAP Market). 

The LEAP Market was first launched by Bursa Malaysia in 2017 as an alternative capital-raising platform for micro, small and medium enterprises (MSMEs) that allows early-stage companies to access equity financing earlier in their growth cycle. The LEAP Market’s intended purpose was to bring together MSMEs and sophisticated investors onto a single platform to create a conducive marketplace to raise funds and a platform for price discovery. The LEAP Market also operates under an adviser-driven, disclosure-based regime with listing requirements that are less extensive compared to the MAIN Market and ACE Market and serves as a stepping stone for companies to transfer to the ACE Market.

The proposed enhancements of LEAP Market announced by the SC (Proposed LEAP Market 2.0) form part of a broader effort to improve access to financing for MSMEs and support their growth through Malaysia’s capital market ecosystem. The Proposed LEAP Market 2.0 initiative is intended to strengthen the value proposition of the platform to facilitate more seamless fundraising for smaller businesses and mid-tier companies from private to public markets. Currently, the Proposed LEAP Market 2.0 has not taken effect yet and a public consultation paper has been issued by Bursa Malaysia to seek feedback from the public.
 
  Existing LEAP Market Listing Requirements Changes under the Proposed LEAP Market 2.0 Remarks
1. Who is eligible to invest in LEAP Market?
 
  • Currently, all securities offered or issued in conjunction with an applicant’s initial listing in LEAP Market must be made to its existing securities holders or sophisticated investors only. 
  • Post-listing, the trading of the shares in LEAP Market companies are limited to sophisticated investors only.
  • The investor pool for LEAP Market will be expanded to include retail investors.
  • A retail investor may invest in LEAP Market subject to the following investment limits (Prescribed Investment Limits):
    1. maximum of RM100,000 each in subscription of securities offered or issued in an initial listing of an applicant or a secondary fund raising by a listed corporation
    2. with their participation 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. 
  • Sophisticated investors are not subject to the Prescribed Investment Limits. 
  • In the past, trading of the shares in LEAP Market companies was limited to sophisticated investors only. Due to limited pool of market participants, LEAP Market companies have been generally illiquid and have discouraged new listings in the market. 
  • The expansion of investor pool to include retail investors (subject to Prescribed Investment Limits) will increase the market participants in LEAP Market, thus creating a more vibrant and liquid market which makes buying and selling of shares easier. 
  • The increased liquidity will also encourage more companies to raise funds in LEAP Market as promoters now have a better exit opportunity to realise their investments as compared to the past where LEAP Market companies are thinly traded. 
  • The increased liquidity also enables better price discovery on the valuation of LEAP Market companies. 
2. Disclosure requirements 
 
  • Currently, all listing applicants in LEAP Market are required to issue an information memorandum based on the prescribed information as set out in the LEAP Market Listing Requirements (Information Memorandum).
  • An alternative disclosure document will be introduced (Listing Document), 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.
  • The Listing Document (introduced under the Proposed LEAP Market 2.0) is generally a more simplified document which involves lesser disclosure requirements as compared to the Information Memorandum. 
  • The reduction of disclosure requirements is expected to facilitate a lower listing cost. 
3. Transfer listing from the LEAP Market to the ACE Market
 
  • Currently, LEAP Market companies seeking to transfer its listing to the ACE Market is required, among others, to request for a withdrawal of listing from the LEAP Market and offer its shareholders either an exit offer or any other exit mechanism which is equitable to all shareholders.
  • The existing mandatory withdrawal of listing and exit offer requirements will be removed.
  • The removal of the existing mandatory withdrawal of listing and exit offer requirements will eliminate administrative procedures needed to transfer from LEAP Market to ACE Market, hence, allowing an easier and quicker process for such migration. 
4. Alternative fundraising pathway for companies listed on equity crowdfunding platforms (ECF Companies) 
 
  • Currently, ECF Companies are not allowed to apply for direct transfer to LEAP Market.
  • ECF Companies may apply for admission to the LEAP Market directly based on the following criteria:
    • it had, within 7 years before the date of submission of its initial listing application:
      • successfully completed at least 1 equity fundraising exercise on the ECF platform where it was hosted; and
      • raised an aggregate of RM5 million through ECF platforms which they are hosted or Venture Capital and Private Equity Corporations and Management Corporations (VC/PE) firms. 
    • it is suitable for listing on the LEAP Market, having regard to its business and operation, corporate governance record, public interest and adequacy of disclosures.
    • it has secured the services of a Continuing Adviser for at least 1 full financial year upon its admission to the LEAP Market.
    • it may only submit its initial listing application to the Exchange after the expiry of at least 6 months from the completion date of its most recent equity fundraising exercise through the ECF platform.
  • Eligible ECF Companies may also submit listing applications without an Approved Adviser, with ECF operators or Venture Capital and VC/PE firms acting as listing agents to liaise with Bursa Malaysia.
  • In the past, although ECF platforms were more accessible to a wider investor base compared to the LEAP Market, investments in MSMEs remain largely illiquid, compounded by smaller deal sizes, higher relative transaction costs and fragmented capital-raising platforms with differing fundraising requirements and investor expectations.
  • The proposed changes allow ECF companies to gain easy access to LEAP Market which is a more recognisable market for ECF companies to enhance corporate profile and visibility. 
  • The LEAP Market can also act as a stepping stone for ECF companies to grow larger and eventually move to the ACE Market.

Conclusion
The introduction of the Proposed LEAP Market 2.0 marks a significant milestone in the development of Malaysia's capital market ecosystem. By broadening investor participation, enhancing market liquidity, streamlining fundraising and facilitating a smoother transition to the ACE Market, the proposed reforms strengthen LEAP Market's role as a vital growth platform for MSMEs.

These enhancements are expected to improve access to capital, increase market visibility for MSMEs and create a more efficient pathway for business expansion. Ultimately, the Proposed LEAP Market 2.0 has the potential to foster greater entrepreneurial activity, deepen Malaysia's equity market and contribute to the long-term growth and competitiveness of the nation's economy.
 
How BDO Can Help
BDO Capital Consultants Sdn Bhd (BDOCC), the corporate finance advisory arm of BDO in Malaysia, is licensed by the SC to advise on Corporate Finance and is licensed by Bursa Malaysia as an Approved Adviser for LEAP Market listings. 

BDOCC provides the following services:
  • Acting as Approved Adviser and Continuing Adviser for new LEAP Market Applicants; and
  • Acting as Continuing Adviser for ECF Companies that are seeking admission to LEAP Market. 

Contact Us
If you have any enquiries in relation to LEAP Market listing, please contact the following personnel:

(1)    Eng Cha Lun - Executive Director – Advisory
engcl@bdo.my | 03-2616 2867
(2)    Arthur Cheng - Director – Advisory
arthurcheng@bdo.my | 03-2616 2851