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Alternative Financing for SMEs

Malaysia was the first ASEAN country to create a framework aimed at facilitating crowdfunding, with the objective of allowing SMEs to raise early-stage financing. As part of the Securities Commission Malaysia (SC)’s efforts to nurture and facilitate market-based innovation in Financial Technology (FinTech), the regulatory framework for Equity Crowdfunding (ECF) was introduced in February 2015. Continuing on the initiatives, the SC also introduced the regulatory framework for Peer-to-Peer (P2P) lending, setting out the requirements for registration and obligations of P2P operators in May 2016. 

 

As of June 2020, ten (10) ECF operators had registered with the SC. Since then, a total of RM110.26 million capital was raised through 106 successful campaigns by 102 issuers. Furthermore, eleven (11) P2P platforms had also registered with the SC. There were 10,824 successfully completed campaigns by 2,231 issuers, raising a total of RM798.32 million.

 

EQUITY CROWDFUNDING (ECF)

Equity Crowdfunding (ECF) is an innovative form of alternative fundraising that allows small businesses to raise capital from the public using online platforms registered by the Securities Commission Malaysia (SC). ECF allows these small businesses to offer equity in their companies to investors, who in turn invest in ideas they see potential in. With ECF, investors have the opportunity to diversify their investments beyond the traditional asset classes.

 

How to Apply?
Please sign up directly on  ECF Operators’ websites for application arrangement.

 


List of ECF Operators

No.

Logo

Name

Founded / Launched

Website

1.

ata

 Ata Plus Sdn. Bhd.

2014

https://ata-plus.com/

2.

 crowdo

 Crowdo Malaysia Sdn. Bhd.

2013

https://crowdo.com/

3.

 eureeca

 Eureeca SEA Sdn. Bhd.

2013

https://eureeca.com/

4.

 fbm crowdtect

 FBM Crowdtech Sdn. Bhd.

2013

https://www.fundedbyme.com/en/

5.

 fundnel

Fundnel Technologies Sdn. Bhd.

2018

https://fundnel.com/

6.

 pitch

 Pitch Platform Sdn. Bhd.

2012

https://www.equity.pitchin.my/

7.

 crowdplus

 Crowdplus Sdn. Bhd.

2015

https://www.crowdplus.asia/

8.

 leet

 Leet Capital Sdn. Bhd. (1337 Ventures)

2019

https://leet.capital/

9.

 ethis

 Ethis Ventures Sdn. Bhd.

2019

https://ethis.co/

10.

 MyStartr

 MyStartr Sdn. Bhd.

2019

https://www.mystartr.com/

 


PEER TO PEER FINANCING (P2P)

Peer-to-Peer (P2P) financing is yet another innovative form of financing that broadens the ability of entrepreneurs and small businesses to unlock capital from a pool of individual lenders in small amounts. P2P allows businesses to borrow and investors to lend capital through online platforms registered with the Securities Commission Malaysia (SC).

 

How to Apply?
Please sign up directly  on P2P Operators’ websites for application arrangement.

 

List of P2P Operators

No.

Logo

Name

Websites

 

1.

bay smart

 Bay  Smart Capital Ventures Sdn. Bhd.

https://capbay.com/

2.

capshere

 Capsphere Services Sdn. Bhd.

https://www.capsphere.com.my/

3.

quickash

 QuicKash Malaysia Sdn. Bhd.

https://www.quickash.com/

4.

B2B

 B2B Finpal Sdn. Bhd.

https://www.b2bfinpal.com/

 

5.

modalku

 Modalku Ventures Sdn. Bhd.

https://fundingsocieties.com.my/

6.

peoplender

 Peoplender Sdn. Bhd.

https://www.fundaztic.com/

7.

FBM

 FBM Crowdtech Sdn. Bhd.

https://www.alixco.com/

8.

microLEAP

 MicroLEAP PLT

https://www.microleapasia.com/

9.

ethis capital

 Ethis Kapital Sdn. Bhd.

https://www.nusakapital.com/

 

 

(“LIST OF REGISTERED RECOGNISED MARKET OPERATORS,” n.d.) 

 

 

REFERENCES
Annual Report 2019 (n.d.). Retrieved from:
https://www.sc.com.my/api/documentms/download.ashx?id=a0099ceb-8908-44d3-9399-950e83d86f53

List of Registered Recognized Market Operators (n.d.). Retrieved from:
https://www.sc.com.my/development/digital/list-of-registered-recognized-market-operators

Equity Crowdfunding (n.d.). Retrieved from:
https://www.capitalmarketsmalaysia.com/digital-equity-crowdfunding-ecf/

Peer-to-Peer (P2P) Financing (n.d.). Retrieved from:
https://www.capitalmarketsmalaysia.com/digital-peer-to-peer-p2p-financing/

 

 

CONTACT US

SME Corporation Malaysia
Level 6, SME 1, Block B 
Platinum Sentral
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur

Info Line: 1300-30-6000
Fax Line: 03-2775 6001
Email: info[at]smecorp[dot]gov[dot]my

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