SC will develop framework on social exchange implementation

SC chairman Datuk Seri Dr Awang Adek Hussin

KUALA LUMPUR: The Securities Commission Malaysia (SC) will soon develop a detailed framework for implementing the Social Exchange (SE), especially regarding governance and assurance requirements, to ensure that funds raised in the SE will be properly used as intended.

Its chairman, Datuk Seri Dr Awang Adek Hussin, said that by having a dedicated fundraising platform for projects with positive social outcomes, the SE will further facilitate the mobilisation of private and philanthropic capital to meet the needs of the underprivileged.

In a statement today, he said the proposed SE also reflected the government’s commitment towards a holistic development approach in nation-building, in line with the MADANI Economy framework to assist the needy segment of the population.

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim announced two capital market-related initiatives at the Global Forum of Islamic Economics and Finance.

The first is the establishment of Malaysia’s first SE, a structured approach to private capital participation in projects with positive social outcomes.

Anwar, who is also the finance minister, also announced the introduction of fundraising for waqf developments through peer-to-peer (P2P) financing and equity crowdfunding (ECF) platforms, with the government providing matching funding through Malaysia Co-Investment Fund (MyCIF) at zero per cent financing rate.

Awang Adek said that to support the fundraising of waqf development via ECF and P2P financing platforms, new incentives under MyCIF would be introduced to benefit micro, small and medium enterprises (MSMEs).

"This could benefit MSMEs undertaking waqf-related projects, especially in the development of waqf land in the upstream agriculture and bio-economy segments.

"This will encourage more MSMEs to work with state Islamic religious councils in business ventures that aim for positive social outcomes, at the same time, contributing to the national food security agenda,” he added. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Oriental Kopi files for Bursa IPO
Laundry Care ventures into linen rental business
Hibiscus Petroleum in Brunei expansion
Malaysian Re, Pacific Life Re extend takaful agreement
Debt fuelling growth of Corporate Malaysia
Samling Timber Malaysia focuses on sustainability
MI Technovation prepares for chip recovery
Real estate prospects continue to perk up
BHIC wins RM1bil govt job
Prabowo aims to raise Indonesia debt-to-GDP ratio toward 50%

Others Also Read