The Malaysia Co-Investment Fund (MyCIF), set up by the Ministry of Finance noted that the total funds raised by equity crowdfunding (ECF) and peer-to-peer (P2P) platforms rose by RM300 million to RM1.7 billion in 2022 from 2021.
It said the 26% year-on-year growth in the overall ECF and P2P markets reflected the growing investor and business interest in alternative financing options. Of the total, it invested RM282 million compared to RM193 million in 2021, reflecting a strong growth in the overall ECF and P2P lending spaces. The public-private co-investment model via alternative financing platforms is the first-of-its-kind in Southeast Asia, was set up by the MoF as part of Budget 2019.
MyCIF also reached a higher proportion of under-served segments in 2022. During the year, it implemented a special 1:2 co-investment ratio for agricultural businesses. As a result, almost four times more agricultural issuers fund-raised on ECF and P2P platforms. Similarly, 28% of MyCIF funds were channelled to non-Klang Valley campaigns, up from 21% in 2021.
“MyCIF has proven to play a key role in supporting the growth of the ECF and P2P lending spaces,” SC Chairman Dato’ Seri Dr. Awang Adek Hussin said. “Approximately 10 times more firms have raised funds via ECF and P2P platforms since the inception of MyCIF.”
By 2022, a total of RM638 million* have been co-invested in almost 35,000 ECF and P2P financing campaigns, benefitting some 3,635 Malaysian MSMEs. Since its inception, MyCIF has generated a positive net return on capital of RM16.5 million. Until the end of 2022, it has received a total allocation of RM230 million, with an additional RM40 million allocated in Budget 2023.
Moving forward in 2023, MyCIF will encourage more innovation in areas that have been identified as strategic to the Malaysian economy. It will do this by continuing its existing initiatives for agricultural businesses, as well as, extending the similar special 1:2 co-investment ratio to the environmental, social, and governance (ESG) sector.
