LEAP Market 2.0: SC and Bursa propose new route from equity crowdfunding to public listing

The Securities Commission Malaysia (SC) and Bursa Malaysia published a joint proposal on 18 May 2026 to overhaul the LEAP Market, the country's smaller-company public listing venue, with the explicit goal of letting businesses that started life on an equity-crowdfunding (ECF) platform graduate to a public listing without going through the traditional approved-adviser route. The public consultation runs until 15 June 2026.

Under the proposal, eligible equity-crowdfunding issuers with a proven fundraising track record may apply for listing through an alternative admission route. They may submit listing applications without an approved adviser, with ECF registered market operators — or venture capital and private equity firms — acting as listing agents to liaise with Bursa Malaysia. The proposal is part of the SC's Capital Market Masterplan 2026–2030 and the government's broader LEAP Market 2.0 announcement made by Finance Minister II Datuk Seri Amir Hamzah Azizan in March 2026.

The deal

To qualify, an ECF issuer must have raised at least RM 5 million through ECF platforms — and, where applicable, VC or PE firms — within the past seven years. They must also appoint a continuing adviser after admission to the LEAP Market. The proposal introduces a simplified disclosure document that keeps the essential investor information but makes submissions more structured and consistent than today's prospectus regime.

The retail-investor rules also change. Retail investors will be allowed to participate in the LEAP Market, which is currently limited to sophisticated investors. Their participation will be capped at RM 250,000 at any point in time, with a RM 100,000 limit per issuer in the primary market and RM 100,000 per broker in the secondary market. Advisers may receive up to 50% of their advisory fees in ordinary shares of the applicant, subject to safeguards including a 2% shareholding limit per adviser, a 5% aggregate cap for all advisers, and a six-month moratorium on disposal of those shares.

Why this matters

For the ECF ecosystem, this is the missing graduation rung. The current pipeline is: bootstrap → ECF raise → ??? Most ECF issuers hit a wall when they're ready to scale publicly because the adviser cost, prospectus burden, and sophistication requirement are designed for ACE Market candidates, not SMEs. The proposal threads a needle — keep the safeguards (continuing adviser, RM 5 million ECF track record, retail caps) but drop the cost and friction at the front door.

For retail investors, this is the first time ordinary Malaysians will be able to put money into a LEAP-listed name directly through a broker. The RM 250,000 aggregate cap and the per-issuer RM 100,000 primary-market cap are deliberately tight — the SC is testing the waters, not opening a floodgate.

For ECF platform operators (pitchdeck.my's direct peers), this is a real business line. The proposal lets them act as listing agents for their own alumni issuers. For a platform that has helped an issuer cross the RM 5 million ECF threshold, the graduation path is now a service they can sell.

What's next

The consultation closes 15 June 2026. After that, the SC and Bursa will issue the finalised amendments. Expect a phased rollout: the simplified disclosure regime and the alternative admission route are likely to land first, with the retail-investor participation rules potentially phased in over 6–12 months as broker systems are updated. ECF platforms and VC firms will need to register as listing agents before they can submit issuers under the new route.

Source: Fintech News Malaysia — "SC, Bursa Malaysia Propose LEAP Market Enhancements"