KUALA LUMPUR: The Securities Commission Malaysia's (SC) equity crowdfunding (ECF) and peer-to-peer (P2P) platforms have raised significant sums for Shariah-compliant projects amounting to more than US$262 million (RM1.24 billion) over the past seven years.  

Its chairman Datuk Mohammad Faiz Azmi said the numbers have grown exponentially from 2022 to 2023. 

According to him, Islamic ECF/P2P solutions in Malaysia currently contribute at least 24 per cent of total alternative funding, compared to only eight per cent in 2022.

"Overall, (Islamic and non-Islamic) ECF and P2P have raised around US$1.7 billion (RM 8 billion), supporting over 18,000 micro, small, and medium enterprises (MSMEs), since inception," he said.

He said that the SC will continue to foster an environment that encourages innovation, enabling entrepreneurs to secure market-based financing for start-ups and early-stage companies. 

Since 2015, the SC has gradually introduced several initiatives. This includes guidelines on recognised markets, platforms for industry discussions such as Fintech Roundtables and dialogues with key industry players, and a regulator-led accelerator programme, FIKRA ACE, which promotes Shariah-compliant solutions.  

"We have also introduced licensing for fintech players, for example, recognised market operators (RMOs), digital asset exchanges (DAX), and digital investment management services (DIMS).  

"The goal has always been to strike a balance, to give new players the confidence to enter the market, and to provide a clear path that fosters growth while keeping everything on track," he said in his opening remarks at the FIKRAtech roundtable on Wednesday. 

"We were the first in the ASEAN region to introduce a framework for ECF in 2015, starting with just six players. Today, we have over 40 players across various fintech verticals, including PTP financing, digital asset exchanges, and initial exchange offering platforms."

Mohammad Faiz said that although Islamic solution providers are still a small part of this ecosystem, their presence is increasing.

He added that the SC's aim is to cultivate a robust digital landscape by offering a balanced regulatory framework that supports innovation while maintaining market integrity.

https://www.nst.com.my/business/corporate/2024/09/1101573/scs-funding-platforms-have-raised-over-rm124b-shariah-compliant