Malaysia unveils six equity crowdfunding platforms

The six platforms - which are all set to launch operations by the end of this year - are Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+. They were chosen from 27 applicants.

Datuk Ranjit Ajit Singh, the chairman of the SC, said the equity crowdfunding framework (ECF), under which the platforms will operate, was part of a broader strategy by the SC to democratise finance.

"Over the years, Malaysia has developed a diversified and well-established MYR2.8 trillion ($748 billion) capital market, helping businesses to grow as well as financing long-term investments in the economy," he said in a statement. "However, for capital markets to be inclusive, small and medium enterprises (SMEs) and start-ups must also be able to obtain market-based financing."

The SC introduced new requirements for the registration and governance of ECF platforms as part the of the Capital Markets and Services Act 2007.

The regulator has also a revealed that a memorandum of understanding has been signed between the government-backed Multimedia Development Corporation (MDeC) and three of the six platform operators - Crowdonomic, pitchIn and Propellar Crowd+ - to conduct programmes to funnel tech start-ups to the crowdfunding platforms.

Crowdfunding platforms have been proliferating in region for some time but the concept of equity crowdfunding, which sources capital from investors rather than philanthropic fans, is now gaining traction. Regulators in Asia have been playing catch up since the US brought in the Jumpstart Our Business Startups (JOBS) Act, a piece of legislation intended to encourage the funding of small business in the US by easing various securities regulations.

Singapore, for example, recently saw the launch of its first equity crowdfunding platform after the Monetary Authority of Singapore (MAS), issued a public consultation paper on securities-based crowdfunding. Meanwhile in Australia the government has put aside A$7.8 million ($6.2 million) for regulators to implement and monitor a new set of equity crowdfunding guidelines.

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• Topics
• Southeast Asia
• Early-stage
• Fundraising
• Regulation
• Crowdfunding
• seed
• Malaysia
• Fundraising
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• Southeast Asia