Malaysia has allocated RM270 million under Budget 2027 to attract private investment through P2P financing and equity crowdfunding (ECF) platforms.
Prime Minister and Finance Minister Anwar Ibrahim announced the allocation while tabling the budget in the Dewan Rakyat on 9 October.
The funding aims to support SMEs, mid-tier companies and social enterprises.
However, the budget speech did not specify how the funds would be distributed or which agency would oversee the allocation.
The government also announced tax measures to support alternative financing platforms.
Loan agreements executed through P2P financing platforms will be subject to a fixed stamp duty of RM10 from 1 January 2027 to 31 December 2030.
Meanwhile, the government has extended income tax exemptions for individual investors participating through ECF platforms and catalytic investors financing early-stage technology startups until 31 December 2030.
Other measures under Budget 2027 include RM450 million in startup investments through Khazanah’s Jelawang Capital and KWAP’s Dana Perintis.
ECF and P2P financing in Malaysia fall under the Securities Commission Malaysia (SC), which introduced its ECF framework in 2015 and its P2P framework in 2016.
The SC has described Malaysia as the first country in ASEAN to regulate P2P financing.
Featured image credit: Edited by Fintech News Malaysia, based on image by SujhonSharma and Artantozora Ind via Magnific and kliwir art and Uniconlabs via Flaticon
