SC launches alternative financing scheme for MSMEs


KUALA LUMPUR: The Securities Commission (SC) has launched Sarana, an alternative financing scheme offered by nine SC-registered peer-to-peer (P2P) financing platform operators under the government e-procurement system.

The SC said in a statement that it is effective immediately and aims to address the working capital needs of micro, small and medium enterprises (MSMEs) and small contractors participating in government contracts for supplies, services or works.

“Sarana offers two primary financing options, namely, invoice financing which supports cash flow post-contract delivery and financing for contract implementation to bridge contractors’ initial working capital needs before a project is executed,” it said in a statement.

This initiative to enable access to the capital market through P2P platform operators is also in line with the SC’s Catalysing MSME and MTC Access to the Capital Market: Five-year Roadmap (2024-2028).

Since the SC introduced the P2P regulatory framework in 2016, registered P2P platform operators have played a pivotal role in addressing the financing needs of locally incorporated companies.

As of Sept 30, 2024, P2P financing had raised RM7.9bil. With the government’s support for P2P financing as announced in Budget 2025, Sarana provides a viable alternative to bridge critical funding gaps, particularly for companies facing challenges in assessing traditional financing, the SC said. — Bernama

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Securities Commission , Sarana , finance , MSME , P2P

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