Securities Commission Malaysia building at Kuala Lumpur.
KUALA LUMPUR: The Malaysia Co-Investment Fund (MyCIF) has co-invested RM638 million in almost 35,000 equity crowdfunding (ECF) and peer-to-peer (P2P) financing campaigns by 2022 and benefiting some 3,635 Malaysian micro, small and medium enterprises (MSMEs), according to its Annual Report 2022 released today.
In a statement, the Securities Commission Malaysia (SC) said the total funds raised in 2022 by ECF and P2P platforms rose by RM300 million to RM1.7 billion from RM1.4 billion in 2021.
"The 26 per cent 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,” it said.
MyCIF is a public-private co-investment vehicle administered by the SC on behalf of the Ministry of Finance (MOF).
SC chairman Datuk Seri Dr Awang Adek Hussin said MyCIF has proven to play a key role in supporting the growth of the ECF and P2P lending spaces.
"Approximately 10 times more firms have raised funds via ECF and P2P platforms since the inception of MyCIF,” he said.
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.
The SC said MyCIF would encourage more innovation in 2023 in areas that have been identified as strategic to the Malaysian economy 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,” it said.
MyCIF also outlined its commitment to good governance in its annual report while also promoting transparency in the deployment of public funds and the identities of those who have benefitted from them. - Bernama
