PETALING JAYA: Micro, small, and medium enterprises (MSMEs) in Malaysia’s northern region are encouraged to tap into alternative financing through the Malaysia Co-Investment Fund (MyCIF) to support business expansion and drive economic growth.
Securities Commission Malaysia (SC) digital strategy and innovation executive director Dr Wong Huei Ching highlighted the northern region’s vital role in the country’s economy.
“Home to about 20% of Malaysia’s MSMEs, the region significantly contributes to the agriculture and manufacturing sectors, making it a key driver of industrial expansion and food security,” she said in her speech at the launch of MyCIF National Roadshow in Seberang Jaya, recently.
Wong said that while businesses often rely on grants and bank loans, many early-stage companies struggle to secure funding due to a lack of track records and collateral.
“Equity crowdfunding (ECF) and peer-to-peer (P2P) financing serve as alternative funding solutions, connecting businesses with investors who have a higher risk appetite,” she said.
She remarked that MyCIF has been instrumental in supporting these platforms since 2019.
“Funded by the Ministry of Finance (MoF) and administered by the SC, MyCIF co-invests alongside private investors, amplifying private investments by 3.5 times.
“The fund follows a 1:4 co-investment model, investing RM1 for every RM4 raised from private investors,” she noted.
She said with seed funding of RM260 million, MyCIF has co-invested over RM1 billion in more than 9,000 MSMEs across Malaysia.
“Many businesses from the northern region have benefited, including Angkasa X, a tech-social inclusion company that filed for listing on Nasdaq in 2023, Fuciphagus, a bird’s nest processing company that successfully raised funds twice through ECF and Molinson Biotech, an agritech company transforming oil palm waste into bio-fertiliser for sustainable agriculture,” she added.
Despite these successes, Wong noted that only 17% of businesses funded through ECF and P2P originate from the northern region, indicating a lack of awareness about alternative financing.
“This roadshow aims to change that by providing MSMEs with the necessary knowledge and tools to explore MyCIF’s funding options,” she added.
To further drive adoption, she explained that MyCIF has been allocated RM40 million under Budget 2025 to spur Islamic risk-sharing financing.
Effective 2025–2026, MyCIF will invest on a first-loss basis in ECF and P2P campaigns under Islamic financing models (Musharakah and Mudharabah) and provide 0% financing rates for additional investments in P2P campaigns.
Wong urged entrepreneurs, industry players, and investors to explore MyCIF’s funding opportunities actively.
“The northern region is a dynamic hub of economic activity, and alternative financing can help businesses scale and expand their impact.
“With MyCIF’s continued support, more MSMEs in the region are expected to access funding, accelerate growth, and contribute to Malaysia’s overall economic resilience,” she said.
