RM432 mil raised through equity crowdfunding for SMEs

Securities Commission chairman Syed Zaid Albar. (Bernama pic)

KUALA LUMPUR: The Securities Commission (SC) has raised RM432 million through equity crowdfunding and peer-to-peer financing platforms as at June this year.

The money, raised under its Digital Agenda programme, has benefitted more than 1,200 micro, small and medium enterprises (MSME).

Securities Commission chairman Syed Zaid Albar said its financing campaigns had attracted more than 12,000 investors, 90% of whom were local and retail investors.

“About 53% of the participating investors are aged below 35, demonstrating the potential of this segment in democratising access to a new generation of investors,” he said when opening the “Future of Fintech in Asean” event organised by CIMB Asean Research Institute (CARI).

The event was held at SC’s headquarters here today. Also present was CARI chairman Munir Majid.

Syed Zaid said it was important to provide equal access to financing for MSMEs as they were under-served by the financial system despite being a vital component of the Malaysian economy.

To date, he added, SC had licensed three digital investment managers and one digital equities broker. It has also approved, in principle, one investment manager.

Syed Zaid said it was important for Asean regulators to have agreements among themselves to nurture the development of Fintech in their respective markets.

The Asean Economic Community’s (AEC) vision for 2025, Syed Zaid added, was on closing the digital gap, increasing financial access and literacy, expanding the scope of intermediary facilities and developing more inclusive financial services for small businesses and lower-income groups.

“With an encouraging regulatory regime and strategic vision from the AEC 2025 blueprint, Fintech adoption across Asean is progressing, albeit at different speeds,” he said.