The Malaysia Co-Investment Fund (MyCIF), set up by the Ministry of Finance, has continued to support of micro, small and medium enterprises (MSMEs) in its efforts to promote greater capital market access and inclusivity among the under-served segments.
In its Annual Report 2022 released today, MyCIF noted that the total funds raised by equity crowd funding (ECF) and peer-to-peer (P2P) platforms rose by RM300 million to RM1.7 billion in 2022 from 2021.
It said the 26% year-on-year growth in the overall ECF and P2P markets reflected the growing investor and business interest in alternative financing options.
Of the total, MyCIF invested RM282 million compared to RM193 million in 2021, reflecting strong growth in the overall ECF and P2P lending spaces.
MyCIF’s public-private co-investment model via alternative financing platforms is the first-of-its-kind in Southeast Asia. It was set up by the MoF as part of Budget 2019.
MyCIF also reached a higher proportion of under-served segments in 2022. During the year, it implemented a special 1:2 co-investment ratio for agricultural businesses.
As a result, almost four times more agricultural issuers fund-raised on ECF and P2P platforms. Similarly, 28% of MyCIF funds were channelled to non-Klang Valley campaigns, up from 21% in 2021.
“MyCIF has proven to play a key role in supporting the growth of the ECF and P2P lending spaces,” SC Chairman Dato’ Seri Dr. Awang Adek Hussin said. “Approximately 10 times more firms have raised funds via ECF and P2P platforms since the inception of MyCIF.”
By 2022, a total of RM638 million* have been co-invested in almost 35,000 ECF and P2P financing campaigns, benefitting some 3,635 Malaysian MSMEs.
Since its inception, MyCIF has generated a positive net return on capital of RM16.5 million. Until the end of 2022, it has received a total allocation of RM230 million, with an additional RM40 million allocated in Budget 2023.
Moving forward in 2023, MyCIF will encourage more innovation in areas that have been identified as strategic to the Malaysian economy.
It will do this by continuing its existing initiatives for agricultural businesses, as well as, extending the similar special 1:2 co-investment ratio to the environmental, social, and governance (ESG) sector.
This is also in line with the national sustainable development agenda, which aims to support the agriculture sector’s transition into a dynamic and progressive sector, and innovation in ESG and sustainability sectors.
MyCIF’s Annual Report also outlined its commitment to good governance while also promoting transparency in the deployment of public funds and the identities of those who have benefitted from them.
The Annual Report, as well as further details of MyCIF, can be found at https://www.sc.com.my/mycif.
*Amount is larger than given allocation of RM230 million due to continuous re-investment of P2P notes, FD interest and ECF dividend
About the Securities Commission Malaysia
The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about the SC is available on its website at www.sc.com.my. Follow the SC on twitter at @SecComMy for more updates.
