The Social Exchange is a key initiative under the Capital Market Masterplan 2026–2030 (CMP), aimed at broadening access and participation in social impact financing through Malaysia’s capital market.
Malaysia’s third sector plays an important role in addressing social and environmental challenges. However, access to sustainable and transparent funding channels remains fragmented. In this context, the Social Exchange is intended to support the development of a more organised and credible fundraising environment by:
- Mobilising private capital towards social impact initiatives
- Strengthening governance, disclosure and reporting practices
- Enhancing donor confidence through regulatory oversight
- Supporting the growth of a more resilient third sector ecosystem
The initial phase of the Social Exchange facilitates direct cash donations from donors to approved non-profit organisations under subsection 44(6) of the Income Tax Act 1967.
The initiative seeks to strengthen the ecosystem for Malaysia’s third sector by providing a structured and transparent avenue for non-profit organisations to raise donations for eligible social projects. While participation on the Social Exchange Platform is voluntary, it provides NPOs with an additional fundraising avenue alongside their existing channels, but within a regulated framework that strengthens credibility.
At the same time, it enhances visibility for donors on how funds are utilised and the outcomes achieved, thereby promoting greater transparency, accountability and trust within the social impact ecosystem.
The Social Exchange also reflects the whole-of-nation approach under CMP 2026–2030, which emphasises collaboration across the public, private and social sectors to strengthen national economic resilience and drive inclusive growth. It further aligns with Malaysia’s broader economic and sustainability agenda, including the 13th Malaysia Plan and Malaysia’s commitment to the Sustainable Development Goals.
Through the Social Exchange, the Securities Commission Malaysia seeks to catalyse greater collaboration between the capital market and the third sector to support sustainable and inclusive development in Malaysia. In the subsequent phases, the scope of the Social Exchange will be further expanded for wider participation and broadened to include capital market instruments.
