As leading edge sectors of the global economy increasingly derive their impetus from intellectual capital and productivity enhancement, capital markets must provide the conditions for transitions of the economy to occur. In response to such intense competition, Vision 2020 is Malaysia’s bold and visionary aspiration which will steer the economy from a labour-intensive, low value added manufacturing base to a high growth, service oriented economy.
The MALAYSIAN EXCHANGE OF SECURITIES DEALING & AUTOMATED QUOTATION BHD (MESDAQ) was conceived as a strategy towards the achievement of Vision 2020 by bringing together growth companies and investors.
MESDAQ commenced trading on Friday, 30 April 1999. Guest of Honour was the Chairman of the Securities Commission, Mr. Ali bin Abdul Kadir.
Our Vision
MESDAQ has a mandate to enhance Malaysia’s capital market environment. As it plays its role in assisting capital formation in Malaysia, it will seek to serve growth companies in the country and in the region. By paying attention to the hallmarks of a FELT market, one that is Fair, Efficient, Liquid and Transparent, MESDAQ will work with growth companies as they come to the market and support their continued development and prosperity.
Encouraging the development of growth companies
Growth companies face the perennial problem of finding suitable investors and sources of financing to fund their operations at their initial or intermediate stages. Lacking a track record, conventional sources of financing such as banks are often unavailable or available at high costs. Venture capitalists too may be deterred to invest in these companies due to the absence of an early exit route. Listing on a stock exchange is often a distant dream.
MESDAQ is a stock exchange targeted specifically to growth and technology companies. It creates a new vista for companies seeking investors and vice-versa. Through a listing on MESDAQ, companies can now have access to public funds.
For venture capitalists, MESDAQ provides them with an early exit route for their investments in growth companies. Armed with this option, venture capitalists would be encouraged to invest in companies with high-growth potential in their early growth stages.
Investors seeking new investment horizons can look to MESDAQ for exciting new opportunities. The introduction of Market Makers facilitate the building of liquidity for small capitalised companies. As such, investing in growth companies is a viable as well as attractive investment option. Investors are also protected through implementation of a full-disclosure system of regulation.