KUALA LUMPUR: Malaysia’s equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms collectively raised RM432 million as of June 2019, benefiting over 1,200 micro and small and medium enterprises (MSMEs), according to the Securities Commission Malaysia (SC).
Its chairman Datuk Syed Zaid Albar said the financing campaign under these platforms attracted more than 12,000 investors, of whom 90 per cent were local and retail investors.
“This demonstrates the potential of this segment in democratising access to a new generation of investors,” he said in his opening remarks at the Smart Showcase Series: The Future of Fintech in ASEAN Conference, here today.
Syed Zaid said in response to the emerging pool of digital-savvy investors, the SC was also facilitating the provision of digital- only services, such as robo- advisory, which offered strong convenience, better accessibility and transparency at a relatively affordable cost.
To date, the regulator has licensed three digital investments managers, and one digital investment manager.
The three recognised market operators have also been registered to operate digital asset exchanges in Malaysia.
According to Syed Zaid, the SC has in addition, also introduced new requirements for electric platforms to facilitate the trading of digital assets.
“Moving forward, we expect more participants entering our market, especially in micro- investing, financial planning, investment advice, social investing and automated trading,” he said.
Organised by CIMB Asean Research Institute (CARI) and supported by the ASEAN Business Advisory Council Malaysia and ASEAN Business Club, the one-day conference focused on the future of fintech within the regional grouping.
Meanwhile, CARI chairman Tan Sri Munir Majid said fintech can mitigate the main three problems faced by MSMEs and the poorest unbanked households.
“The problems are namely, the payment and transfer gap, savings gaps and credit gap,” he added.
He said the reality in ASEAN is that, the region was still at a nascent stage of development in the digital economy, with a few countries beginning to set up a regulatory sand box to pilot test fintech ideas.
“ASEAN needs to catch up, not just in terms of technology, but also realise that unless it creates a region- wide ecosystem, the benefits would be less impactful,” added Munir, who is also a member of the Economic Action Council chaired by Prime Minister Tun Dr Mahathir Mohamad. — Bernama