KUALA LUMPUR: The Securities Commission (SC) has introduced six registered peer-to-peer (P2P) financing platform operators in Malaysia to widen funding avenues for small and medium enterprises (SMEs).
The six operators -- B2B FinPAL, Kapital, FundedByMe Malaysia, ManagePay
Services, Modalku Ventures and Peoplender -- are expected to be fully operational in 2017, said SC chairman Tan Sri Ranjit Ajit Singh.
"This makes Malaysia the first country in the Asean region to regulate P2P financing," he said at the Digital Finance Conference 2016 in Kuala Lumpur on Thursday.
He said SC was also the first to put in place a regulated framework for equity crowdfunding (ECF) in 2015.
As of October 2016, 11 Malaysian SMEs have raised a total of RM8mil via the six ECF platforms.
SC introduced the ECF in 2015 to provide early-stage financing for start-up entrepreneurs while the P2P financing framework, introduced in April this year, aims to address funding needs for SMEs to raise working capital for growth.
"SC's digital agenda aims to achieve four key objectives, namely to enhance access funding, increase investor participation, augment the institutional market and develop a synergistic ecosystem.
"Market-based financing including P2P and ECF will help enhance access to financing for entrepreneurs and SME businesses in Malaysia," said Ranjit.
To meet the investment needs of the emerging digital generation and increase investor participation, SC will also be introducing its Digital Investment Services framework in 2017.
"This will allow approved licensees to offer automated discretionary portfolio management which is a more cost-effective, accessible and convenient channel for investors to manage and grow their wealth," he added - Bernama.