KUALA LUMPUR: More than RM7bil was mobilised under Malaysia Co-investment Fund (MyCIF) to fund over 11,500 micro, small and medium enterprises (MSMEs) and startups since 2019, said Securities Commission (SC) chairman Datuk Mohammad Faiz Azmi.
He said by co-investing alongside the crowd, MyCIF has enhanced investor confidence and has co-invested RM1.5bil and “crowded-in” RM6.2bil from private investors.
“This means every ringgit MyCIF co-invests brings in on average RM4.13 from private investors,” he said in his welcoming remarks at MyCIF Engagement Day yesterday.
The event was graced by Finance Minister II Datuk Seri Amir Hamzah Azizan.
Mohammad Faiz said MyCIF was set up by the Finance Ministry (MoF) in 2019 to “crowd in” private capital through equity crowdfunding (ECF) and peer-to-peer (P2P) platforms.
“The concept is simple. It invests RM1 of government money for every RM4 raised from crowd investors.”
For strategic schemes, the ratio can be increased to RM1 for every RM2 raised.
“It is not a grant. MyCIF invests with the crowd.
“Hence, returns from its portfolio are recycled to benefit other MSMEs on ECF and P2P platforms,” he said, adding that MyCIF has received RM290mil from MoF to date.
Mohammad Faiz said for every RM1 allocated from the government, the money has been reinvested 5.2 times, and over 10 times through P2P platforms alone.
Furthermore, he highlighted that ECF and P2P financing serve as vital alternative fundraising channels, and Malaysia is one of the earliest jurisdictions globally to provide a regulatory framework for these platforms.
Today, they have grown to 30 authorised platforms that have collectively facilitated over RM11.9bil in financing since their introduction, benefitting over 20,000 MSMEs.
In a separate statement, SC said MyCIF has introduced the Silver Economy Scheme as well as venture capital (VC) and private equity (PE) profit-sharing incentives for MSMEs to seek funding in emerging growth areas and make it easier for investors to access high-quality investment opportunities.
Silver Economy Scheme encourages investments into MSMEs, supporting Malaysia’s ageing population, specifically in care-tech, specialised healthcare and senior living.
Meanwhile, VC/PE profit-sharing incentive is a new incentive to attract VC and PE-led deals on ECF platforms, giving opportunities to crowd investors to participate in institutionally backed deals.
“MyCIF will share 50% of the profits with VC and PE-lead investors delivering exits on these investments.
“Gobi Partners and OSK Ventures International have expressed intentions to bring deals to ECF investors,” it said.
Additionally, the Food Security Scheme will be expanded to include agri-tech startups to encourage investments in innovation that supports national efforts to modernise agriculture for increased productivity and food security.
The MyCIF model is the first-of-its-kind in South-East Asia that allows the government to co-invest alongside private investors on eligible ECF and P2P campaigns. — Bernama
