1. YB Tuan Syed Ibrahim Syed Noh
Chairman, Malaysia Digital Economy Corporation (MDEC)
2. Yang Berbahagia Dato’ Mohammad Faiz Azmi
Chairman, Securities Commission Malaysia
3. Yang Berbahagia Datin Azalina Adham
Managing Director, Securities Commission Malaysia
4. YBrs Dr Wong Huei Ching
Executive Director, Digital, Strategy and Innovation, Securities Commission Malaysia
Distinguished guests
Members of the media
Ladies and gentlemen
Selamat pagi, salam sejahtera dan Salam Malaysia MADANI.
1. Firstly, I wish to thank the Securities Commission Malaysia for inviting me to launch GROWMatch, an exciting initiative which matches entrepreneurs across the agriculture value chain with investors.
2. I would like to commend the Securities Commission Malaysia (SC) on this admirable initiative which seeks to address financing gaps faced by Micro, Small and Medium-sized enterprises (MSMEs) involved in the agriculture sector, in a bid to boost our country’s food security.
3. MSMEs form 97% of all businesses in Malaysia. MSMEs' contribution to the GDP grew by 5.0 per cent in 2023, with a value added of RM613.1 billion and contributing 39.1% to Malaysia's economy. The lack of access to funding is a huge problem for MSMEs. As such, widening financing options is key to a brighter future for those in the agricultural sector.
4. This is where fintech players can be the alternative financing platform for agri-based MSMEs. Whether through equity crowdfunding (ECF) or peer-to-peer (P2P) financing, such platforms can offer more options for businesses to access funds.
5. ECF and P2P can allow investors with the right risk appetite to mobilise capital directly for agri-preneurs. We have seen agri-businesses that have successfully raised funds through ECF and P2P platforms. They include those involved in smart farming solutions, tech-based indoor sea fish farms, drone-powered durian plantations, high-tech bird nest cleaning businesses, and e-commerce solutions that link smallholder farmers with end buyers.
Ladies and gentlemen,
6. The GROWMatch initiative complements the strategies set out in the SC's “Catalysing MSME And MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)”, which positions the capital marketas an attractive and robust source of financing for MSMEs and mid-tier companies (MTC).
7. I have been told that GROWMatch is designed to enhance the agri-financing ecosystem by enabling entrepreneurs to connect and pitch their ventures to potential investors in the alternative financing sector. It also aims to help younger and early-stage companies to access capital relevant to their business risk profiles.
8. Such matching platforms are becoming the norm in Malaysia and other parts of the world. In November 2023, Jobstreet launched an AI-powered platform in the Philippines to offer better job matches and insights for Filipino talents and employers.
9. In August 2023, the Malaysian Research Accelerator for Technology and Innovation (MRANTI) under the MInistry of Science and Technology launched the Malaysia Technology Commercialisation Platform (MATCH), a platform that among others matches tech seekers and tech providers.
10. Today, we have GROWMatch, where the Securities Commission collaborates with partners who have a pipeline of agri-based MSMEs from academia, incubators, accelerators, or capacity-building programs, including:
a) Ministry of Agriculture and Food Security;
b) Malaysia Digital Economy Corporation (MDEC), an agency
under the Ministry of Digital;
c) Bioeconomy Corporation;
d) Selangor Information Technology & Digital Economy
Corporation;
e) Universiti Putra Malaysia; and
f) Impact Circle.
11. I’ve been told that these partners have contributed to nearly 70% of GROWMatch applications. As I’ve said repeatedly, the power of collaborations is undeniable. This collaboration between various ministries and agencies will certainly help agri-prenuers in their business ventures. This will in return not only help expand the agriculture sector, but also the digital sector in Malaysia.
Ladies and gentlemen,
12. Digital infrastructure and connectivity is revolutionising the agriculture sector, driving innovation and improving efficiency. I am pleased to share that through Digital Nasional Berhad (DNB), an agency under the Ministry of Digital, 5G coverage of populated areas has hit 81.9%, with an adoption rate of 47.9% and subscriptions of 16.3 million – as of July 2024.
12. I am also glad that MDEC, an agency under my ministry, continues to play a pivotal role in advancing Malaysia’s agricultural ecosystem by integrating technology and supporting key drivers of digital adoption.
13. MDEC engages directly with farm owners and associations to tackle issues like labour shortages and production inefficiencies. MDEC also collaborates with tech providers to run pilot tests, evaluating digital solutions in real farming environments.
14. MDEC also facilitates funding for technology companies that drive digital adoption within the agritech sector. This support helps these companies develop solutions that can be implemented across the agriculture industry.
15. Malaysia Digital (MD) AgTech is an initiative driven by MDEC, in collaboration with stakeholders and ecosystem partners, to digitally empower the national agriculture sector. By integrating digital technologies such as Internet of Things (IoT), Big Data Analytics (BDA), artificial intelligence (AI), and DroneTech, this initiative aims to increase productivity, enhance quality, boost income, reduce operational costs, optimise plantations, and foster further participation.
16. These collaborative efforts aim to sustain and scale Digital AgTech adoption across the agriculture sector, transforming into a digitally empowered industry. Ultimately, this initiative will boost the nation's Digital Economy, in alignment with the official appointment of MDEC by Ministry of Agriculture and Food Security (KPKM) as the National Strategic Technology Validator and supporting the key objectives of the National Agrofood Policy 2021-2030 (NAP2.0) and the National Council of Digital Economy & 4IR (MED4IRN).
Ladies and gentlemen,
17. In addition to GROWMatch, I hope to see more of such matching platforms across all industries and sectors. Such platforms create hope, new opportunities and in return have the capability to further strengthen the nation’s economy. Judging by the success of this programme, perhaps the Securities Commission Malaysia can expand this to MSMEs beyond the agriculture sphere.
18. We must assist our MSMEs in every way possible. Their contribution to our nation’s prosperity is immense and we must not fail to assist local enterprises, by boosting their capabilities and productivity.
19. I would like to the thank the Securities Commission Malaysia once again for inviting me to this event. I truly hope to see more and more agri-based MSMEs benefitting from this matching platform. Let us all work hand in hand to ensure that our agriculture sector is able to thrive, grow and prosper – in order to move the sector forward and to improve our country’s food security.
20. And with that, I hereby officially launch the GROWMatch programme.
Thank you very much.
