Historical Background of MESDAQ Market

The MESDAQ Market, which was launched on
6 October 1997 as the Malaysian Exchange of Securities
Dealing and Automated Quotation (MESDAQ),
originated as an idea in the 7th Malaysia Plan and
germinated in the Securities Commission Concept
Paper presented to the Ministry of Finance in May
1996.

It received endorsement in Budget 1997 and its
framework was announced officially to the public in
February 1997. MESDAQ was conceived as a strategy
towards the achievement of Vision 2020 by bringing
together investors and growth companies.

In essence,MESDAQ was to provide a suitable avenue for capital
raising by quality and high growth technology-based
issuers in Malaysia.

In March 2002, as part of the consolidation process
of the exchanges, MESDAQ was merged with the
KLSE, now known as Bursa Malaysia Securities Bhd
(Bursa).

The merger between MESDAQ and Bursa
sparked renewed interest in MESDAQ, resulting in a
tremendous resurgence in activity in the renamed
MESDAQ Market.

The consolidation of the two equity exchanges was a
significant step towards not only the creation of a single
Malaysian exchange as recommended in the CMP but
also the development of a more efficient financing base
for emerging high growth and technology-based issuers
in Malaysia.

Since the merger, the number of listings on
the MESDAQ Market grew from five to over 100
companies as at end-2005, raising over RM1.6 billion
through IPOs.

In 2005 alone, the MESDAQ Market
recorded 46 new listings, surpassing both the Second and
Main Boards of Bursa, which collectively recorded 33 new
listings. Proceeds raised from IPO were mainly applied
towards business expansion and research and development
initiatives.

This attests to the fact that the MESDAQ
Market continued to fulfil its objective in providing
technology-based, high growth companies easier access
to public funds from the capital market, thus providing
an invaluable alternative to bank loans as a source of
funding.

The MESDAQ Market today remains true to its principal
objective, as encapsulated in the framework for its
establishment.