Fintech Ecosystem Engagement

Mobilising Resources Towards Meaningful Social Impact

Introduction of the MyCIF Advocacy Fund

The Malaysia Co-Investment Fund (MyCIF) has set aside an advocacy fund to offset costs of outreach and advocacy initiatives by ECF and P2P financing platform operators. This initiative aims to increase awareness of ECF and P2P financing, while expanding access to financing for MSMEs and MTCs.

This incentive will run for two years (2025–2026) or until the fund is fully utilised, whichever occurs earlier. Eligible projects are divided into two categories: micro projects, with funding capped at RM10,000 per project, and macro projects, capped of RM100,000 per project. All recipients are required to submit reports to ensure accountability and proper use of funds. In 2025, the MyCIF advocacy fund supported five outreach programmes led or participated in by ECF and P2P financing platform operators, reaching nearly 600 participants.

MyCIF Roadshows

In addition to supporting industry-led outreach efforts through the MyCIF Advocacy Fund, several nationwide roadshows were organised to raise awareness of MyCIF, ECF and P2P financing as alternative funding avenues for MSMEs.

The inaugural MyCIF Nationwide Roadshow took place in Penang on 18 February 2025 organised by the SC in collaboration with the Northern Corridor Implementation Authority (NCIA) under the theme Empowering Financing, Advancing Growth. The event targeted entrepreneurs and executives of MSMEs across Kedah, Penang, Perlis, and Perak.

Close to 400 participants had the opportunity to network with ECF and P2P platform operators and government agencies with targeted sessions and exhibitions designed to address MSMEs’ fundraising needs through alternative financing solutions.

The second roadshow was held in Sabah on 31 July 2025, supported by Invest Sabah as the regional partner. Former state Minister of Industrial Development and Entrepreneurship, Datuk Phoong Jin Zhe officiated the one-day roadshow themed Empowering Financing, Advancing Growth in Kota Kinabalu. It featured networking sessions, breakout discussions and exhibitor booths where participants engaged with ECF and P2P financing platform operators and heard firsthand success stories from companies funded through MyCIF. Approximately 300 representatives from business associations, government agencies, venture capital, private equity and MSMEs attended the event.

Following these two roadshows, 47 campaigns successfully raised a total of RM74 million through ECF and P2P financing platforms.

Mitigating Systemic Risks And Promoting Financial Stability

Enhanced Risk Governance Framework

In 2021, the SC-wide risk governance framework was enhanced as part of an overall initiative to have an effective integrated and predictive risk surveillance to maintain regulatory agility.

The structured risk governance framework integrated the wider spectrum of risks such as technology, cyber and conduct risk at the SC’s Systemic Risk Oversight Committee (SROC) and Accounting, Market and Corporate Surveillance Committee (ACMS).

Intensified surveillance

The SC continued to intensify its surveillance of systemic risk to maintain market resilience and stability. Regular SROC engagements were held to deliberate concerns emanating from various segments across the capital market. Domestic equity and bond market, foreign fund flows and trade participation continued to be monitored closely for potential stress points.

In addition, measures and economic stimulus packages introduced by the government to weather the impact of COVID-19, market trading conduct and the financial position of listed companies were among the focus areas for discussion.

Thematic assessments

The SC also conducted thematic assessments covering investors’ fund flows, the position of firms, and policy decisions to ascertain the possible impact on the capital market. In 2021, the SC reviewed and enhanced its crisis indicators on potential emerging risks in the
capital market.

The enhanced crisis indicators provided a reference point for escalation to SROC when the identified indicators and triggers materialised and ensured prompt response to manage and prevent any issues of concern that might lead to a systemic crisis.

Joint regulatory discussions

In 2021, the SC conducted frequent joint regulatory discussions with other authorities such as Bank Negara Malaysia (BNM) and Labuan Financial Services Authority (Labuan FSA) to identify systemic risk concern areas within the financial and capital markets in Malaysia.

Monitoring of various components of the capital market

The SC continued its efforts to undertake a methodological and integrated approach to ensure any potential systemic risk was being monitored, mitigated, or managed. Figure 1 highlights the findings from the following risk assessments on the various components of the capital market.