SC Malaysia Annual Report 2025: Here’s Five Things You Need to Know
The Malaysian capital market reached a record RM4.3 trillion in 2025, a 3.2% increase from RM4.2 trillion the previous year, driven by higher corporate bond issuances and growing fund management inflows.
Malaysia’s capital market hit a record RM4.3 trillion in 2025, up 3.2% from 2024, on the back of higher corporate bond issuances and stronger fund management inflows.
In his message accompanying the SC Malaysia annual report 2025, Chairman Dato’ Mohammad Faiz Azmi shared that “it was a fulfilling year marked by Malaysia’s leadership of ASEAN and its various platforms, including the ASEAN Capital Markets Forum (ACMF), an established mechanism to advance regional capital markets.”
Alternative Fundraising Key Financing Drivers for MSMEs and MTCs
The report indicated that alternative financing avenues continued to enable financing for MSMEs and mid-tier companies (MTCs), rising to RM 5.7 billion in 2025.
The total alternative funding represented a growth of 39% YoY, a notable acceleration compared to prior years, where total amounts raised ranged from around RM2.4 billion in 2021 to RM4.1 billion in 2024.
Alternative fundraising comprises three channels: equity crowdfunding (ECF), peer-to-peer (P2P) financing, and venture capital and private equity (VCPE).
For Malaysians, particularly small business owners and entrepreneurs, this signals a growing and increasingly accessible landscape for raising capital. It could mean that businesses with limited credit history or collateral may now have more avenues to secure funding.
Peer-to-Peer Financing Raises RM2.83 Billion in 2025
Malaysia’s peer-to-peer (P2P) financing platforms have raised a cumulative RM11.32 billion across 154,283 campaigns since inception. In 2025, total funds raised grew 13% YoY to RM2.83 billion, up from RM2.51 billion in 2024.
The number of campaigns dipped slightly to 33,913 from 34,512 the prior year, while campaign sizes remained small, with 62% raising RM50,000 or less.
Wholesale and retail trade was the largest sector by funding, raising RM1.44 billion and making up 51% of total funds for the year.
Most campaigns were structured around payable financing (63%) with short tenures, as 88% of funded campaigns carried investment note tenures of six months or less. Working capital continued to be the dominant purpose of fundraising, accounting for 98% of campaigns in 2025.
Equity Fundraising Jumps 42%, Hits RM139.34 Million in 2025
Malaysia’s equity crowdfunding (ECF) platforms have raised a cumulative RM917.51 million across 445 campaigns since inception. In 2025, total funds raised climbed 42.4% to RM139.34 million from RM97.84 million in 2024, with the number of successful campaigns rising from 35 to 42 over the same period.
The growth was largely driven by larger campaigns, with those raising more than RM3 million making up 45% of total campaigns in 2025, up from 34% in 2024. Shariah-compliant campaigns accounted for 4.1% of cumulative funds raised.
Seed and Series A-stage campaigns remained the most active fundraising stages, though 2025 also saw new activity at the post-Series A stage for the first time.
Malaysia’s FATF Upgrade and Anti-Fraud Push
The country’s capital markets regulator received a substantial international endorsement in 2025 when the Financial Action Task Force (FATF) upgraded Malaysia to its top “regular follow-up” category, a status which was held by only 11 countries in the previous evaluation cycle.
This endorsement shows that Malaysia’s AML/CFT framework meets the highest internationally recognised standards, which is crucial for cross-border partnerships, corresponding banking relationships, and institutional investors who are accessing the Malaysian market’s risk.
Next, in relation to fraud, the SC reported that scams and unlicensed activities accounted for over 60% of complaints received during the year. In response, the SC joined the National Scam Response Centre (NSRC) in July 2025 and deepened its collaboration with the Malaysian Communications and Multimedia Commission (MCMC) to deploy AI in fraud detection.
Key initiatives which have also been taken include proactive surveillance and early intervention against scams and unlicensed activities, which include URL takedowns, social media interventions and Investor Alert List enhancements.
Tokenised Securities Get Regulatory Clarity, Same Rules Apply
The SC moved in 2025 to clarify, via an Amendment Order, that tokenised securities are subject to the same regulatory standards as conventional securities, regardless of the underlying technology used.
Alongside this, the also SC launched a Bond Tokenisation Pilot in collaboration with Khazanah Nasional, using distributed ledger technology to modernise market infrastructure.
The SC’s enforcement posture, technology adoption, and regulatory clarity on all counts point toward a more demanding compliance environment in the next 12 months, and a market that is better positioned for institutional and cross-border participation as a result.
Dato’ Mohammad Faiz Azmi
“With the forward-looking Capital Market Masterplan 2026-2030 in place, the SC is optimistic that the Malaysian capital market will stay on course in delivering reforms, boosting market competitiveness and inclusiveness, strengthening governance frameworks and enhancing investor protection,” Dato’ Mohammad said.
Featured image edited by Fintech News Malaysia based on image by mkmult on Freepik
