The six platforms are Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+. They are expected to start operations by end of 2015.

In announcing the registered platforms at the forum which began today, Datuk Ranjit Ajit Singh, the Chairman of the SC and Chair of Malaysian Venture Capital Development Council (MVCDC), said the equity crowdfunding framework (ECF) is an important milestone for inclusivity in the Malaysian capital market.

“The establishment of the ECF is a component of SC’s strategy to democratise finance. Over the years, Malaysia has developed a diversified and well-established RM2.8 trillion capital market, helping businesses to grow as well as financing long-term investments in the economy. However, for capital markets to be inclusive; small and medium enterprises (SMEs) and start-ups must also be able to obtain market-based financing. Hence, it is timely to further widen access through innovation in financial technologies such as ECF platforms,” he said.

The announcement was made at the SCxSC forum held at the SC today, which has attracted over 800 participants. The two-day event is organised in collaboration with Maybank, Multimedia Development Corporation (MDeC), Cradle Fund, Malaysian Business Angels (MBAN) and #edGY, a publication that focuses on youth entrepreneurship and start-ups.

The SC first introduced the concept of equity crowdfunding as a channel for fundraising to the wider Malaysian public at the first SCxSC forum in September 2014. It was warmly received and attended by over 500 people.

SC has since then released the Guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007 to introduce new requirements for the registration of ECF platforms and provide governance arrangement for the operator of such platforms.

A call for registration to become ECF operators was released in February 2015. A total of 27 applications to operate an equity crowdfunding platform in Malaysia were received from a diverse group of interested parties, both foreign and domestic. The overwhelming response reflected the attractiveness and confidence from operators on the new fundraising framework.

The SCxSC forum today also saw the signing of an MoU between MDeC and three of the six platform operators namely Crowdonomic, pitchIn and Propellar Crowd+, to conduct programmes in funnelling ICT companies to the ECF platforms.

Dato’ Yasmin Mahmood, the Chief Executive Officer (CEO) of MDeC said, “MDeC continuously collaborate with strategic partners in facilitating innovative solutions and assistance to companies. MDeC is proud to play an instrumental role alongside its partners; SC, Malaysian Venture Capital and Private Equity Association, the investor community, in making equity crowd funding a reality for Malaysian start-ups and SMEs.”