SC approves six equity crowdfunding platforms

PETALING JAYA: The Securities Commission Malaysia (SC) has announced six registered equity crowdfunding platforms for small businesses and entrepreneurs to tap into for capital.

The six platforms are Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+. They are expected to start operations by end of 2015.

SC chairman Datuk Ranjit Ajit Singh said the equity crowdfunding framework (ECF) is an important milestone for inclusivity in the Malaysian capital market.

"The establishment of the ECF is a component of SC's strategy to democratise finance. Over the years, Malaysia has developed a diversified and well-established RM2.8 trillion capital market, helping businesses to grow as well as financing long-term investments in the economy.

"However, for capital markets to be inclusive; small and medium enterprises (SMEs) and start-ups must also be able to obtain market-based financing. Hence, it is timely to further widen access through innovation in financial technologies such as ECF platforms," he said at the Synergy and Crowdfunding Forum 2015 yesterday.

The SC selected the six platforms from 27 applications submitted.