The Ministry of Investment, Trade and Industry (MITI) and the Securities Commission Malaysia (SC) have launched a RM131.5 million fund to provide financial support to SMEs and mid-tier companies (MTCs).
The Strategic Co-Investment Fund (CoSIF), part of the New Industrial Master Plan 2030 (NIMP 2030), will distribute funds through Equity Crowdfunding (ECF) and Peer-to-Peer Financing (P2P) platforms.
The initiative involves government co-investment at pre-determined ratios alongside private investors in businesses operating within NIMP 2030’s 21 designated sectors.
This will include emerging growth sectors like Carbon Capture, Utilisation and Storage (CCUS), Electric Vehicles (EV), Renewable Energy (RE), and Advanced Materials.
The SC will manage the fund, which aims to encourage investment in areas such as advanced manufacturing, digitalisation, and decarbonisation.
The fund is designed to broaden financing options and support the growth of SMEs and mid-tier companies, reflecting the NIMP 2030’s focus on inclusive economic development.
This effort aligns with the SC’s broader strategy to improve capital market access for these businesses, as outlined in their 5-year roadmap, launched in May 2024.
A list of approved ECF and P2P operators for the fund is expected to be announced by the end of March 2025.
YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade, and Industry, said,
“The CoSIF fund exemplifies our commitment to financing SME and mid-tier companies, to support their growth, innovation and long-term resilience. This initiative not only diversifies our financing options but also reflects our commitment to inclusivity by facilitating broad-based growth in our industry.
We are proud to unveil this innovative fund as an integral part of realizing NIMP 2030’s missions, which places us on a better footing to continue positioning Malaysia as a premier manufacturing and services hub in the region.”
SC Chairman, Dato’ Mohammad Faiz, said,
“The deployment of the NIMP CoSIF through ECF and P2P platforms aligns with the SC’s effort to democratise capital market financing access for MSMEs and MTCs, a segment which has been largely underserved.
This structured public-private co-investment mechanism aims to support the fundraising journey of these businesses, fostering a capital market that is more inclusive.”
Featured image credit: Edited from Freepik
