KUALA LUMPUR: The 2017 Budget has sets a solid agenda that will help foster sustainable market growth, said Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan.
“The small and mid-cap PLC research scheme and the GLiCs RM3 billion special fund should create a sustainable ecosystem to promote the visibility and vibrancy of these 300 companies.
“Both these announcements are opportune as we have a ready pool of small and mid-cap companies that could benefit from these programmes.
“By increasing visibility and accessibility through both research coverage and sales distribution; local institutions, retail investors as well as foreign funds will find it easier to invest in these companies,” he said in response to the 2017 Budget announcement today.
Malaysian Industrial Development Finance Bhd (MIDF) group managing director Datuk Mohd Najib Abdullah said the allocation of RM3 billion special fund to invest in potential small and mid-cap companies will boost the trading activities in these counters and help rejuvenate liquidity and sentiment in the local stock market.
“Traditionally, much focus is on the 100 top companies listed on Bursa Malaysia and this new fund will enable the investment companies to seek better capital returns and yields.
“This will unlock the value of small cap companies,” Mohd Najib said.
He said the Small and Mid-Cap PLC Research Scheme is also positive for small and mid-cap stocks because many of these companies are under-researched.