Finance Minister II Datuk Seri Amir Hamzah Azizan (right) and SC chairman Datuk Seri Dr Awang Adek Hussin (centre) engage with an SC-registered equity crowdfunding operator. (Photo courtesy of Securities Commission Malaysia)

KUALA LUMPUR (April 8): The Malaysia Co-Investment Fund (MyCIF) announced on Monday two new incentives to support micro, small, and medium enterprises (MSMEs) within the upstream agriculture and bioeconomy sectors to help boost national food security.

The incentives, unveiled during the MyCIF Open Day, include a 0% financing rate for eligible peer-to-peer (P2P) financing campaigns and the option to forego dividend income from investments in eligible equity crowdfunding (ECF) campaigns.

MyCIF — an agency set up under Budget 2019 and administered by the Securities Commission Malaysia (SC) — said the initiatives are designed to stimulate growth and innovation in crucial segments of the value chain, as well as being part of a broader effort to enhance national food security.

SC chairman Datuk Seri Dr Awang Adek Hussin highlighted Malaysia’s pioneering role in adopting a co-investment model for alternative finance platforms.

He noted that since MyCIF's inception in 2018, the agency has significantly contributed to the growth of the ECF and P2P segment, funding over 15,000 MSMEs.

“It supported business growth and enabled digitalisation by implementing a temporary relief co-investment ratio of 1:2 during the pandemic, resulting in its investment share of the total funds raised rising to 23% in 2020,” he added.

Looking ahead, MyCIF is set to expand its strategic allocations to support the national agenda, focusing on sectors such as the environment, community, food security, education and healthcare.

It will also collaborate with State Islamic Religious Councils to develop Waqf assets, further leveraging Islamic Social Finance to improve socio-economic welfare.

Finance Minister II Datuk Seri Amir Hamzah Azizan, who was also present at the MyCIF Open Day, reaffirmed the government’s commitment to nurturing underserved and strategic sectors.

“Financing upstream businesses is essential for fostering innovation and ensuring the stability of our supply chains, which is vital for the agricultural and bioeconomy sectors,” he said.

MyCIF, which celebrates its fifth anniversary, said it continues to play a critical role in the alternative financing sector, having co-invested RM930 million in ECF and P2P campaigns, benefiting 6,328 MSMEs.

The fund has also managed to reinvest returns from repayments and dividends, amplifying its impact.

The MyCIF Open Day served as a platform for networking and showcased the fund’s journey over the past five years, highlighting its contributions and future plans.