Minister of Finance YB Tuan Lim Guan Eng met with representatives of the financial technology (fintech) industry at a Fintech Roundtable organised by the Securities Commission Malaysia (SC) today.
The roundtable discussed the progress of the fintech industry in fostering digital innovation to meet the financing needs of micro, small and medium enterprises (MSMEs) and enable greater financial inclusion for Malaysian issuers and investors.
The SC announced eight new Recognized Market Operators comprising three equity crowdfunding (ECF) and five peer-to-peer (P2P) financing platforms. They received their letters of registration from the SC chairman Datuk Syed Zaid Albar, witnessed by YB Minister, before the start of the roundtable.
‘‘The SC will continue to facilitate development of innovative digital solutions which democratise access to investments while broadening financing options available for all Malaysians. The introduction of ECF and P2P financing provides an alternative source of capital for MSMEs to fund business expansion, finance working capital and meet other financial requirements,” said Syed Zaid.
With the addition of the new ECF and P2P financing players, which will operationalise by the end of the year, there are now 21 market-based financing platform operators registered in Malaysia. As at end-March 2019, the ECF and P2P financing market has provided close to RM350 million of alternative financing for nearly 900 Malaysian MSMEs.
The SC also released a new property crowdfunding framework following amendments made to its Guidelines on Recognized Markets. This is pursuant to an initiative announced in Budget 2019 to provide an alternative financing avenue for first-time homebuyers.
Property crowdfunding offers the same potential as that of ECF and P2P financing platforms in providing an alternative source of financing but is specifically tailored for first-time homebuyers. At the same time, it will provide investors access to a new investment option.