Welcome Remarks at Launch of the Social Exchange

Speaker: Dato’ Mohammad Faiz Azmi, Chairman, Securities Commission Malaysia

Location: Securities Commission Malaysia, Kuala Lumpur
Delivered: 25 May 2026

Yang Berhormat Tuan Liew Chin Tong, Deputy Minister of Finance,
Yang Berbahagia Dato’ Seri Dr. Awang Adek Hussin, Chairman, Bank Simpanan Nasional and former Chairman of the SC,
Yang Berbahagia Dato’ Fad’l Mohamed, Chief Executive Officer, Bursa Malaysia Berhad,
Members of the SC Board and senior management,
Members of the media,
Distinguished guests, ladies and gentlemen.

Assalamualaikum warahmatullahi wabarakatuh and a very good morning.

It is a pleasure to welcome you to the Securities Commission Malaysia (SC) for the official launch of the Social Exchange.
Firstly, let me extend our heartfelt appreciation to YB Liew for his presence and agreeing to officiate this launch. The Finance Ministry’s support underscores the importance the MADANI Government places on mobilising capital for social impact. It also signals the Government’s strong commitment towards the ensuring that no one is left behind.
Indeed, today marks a significant milestone for charitable and social impact funding in Malaysia.
While the Social Exchange is a key undertaking under the sustainability pillar of the SC’s Capital Market Masterplan 2026-2030, it was actually an idea that my predecessor Dato’ Seri Awang Adek brought to the table.
It is a cornerstone of the SC’s efforts to facilitate market-based fundraising channels to support charitable and social impact activities as well as advance national sustainability goals. This is important given that not all social and community needs can be addressed through government funding alone, whether federal or state.
By utilising trusted and credible platforms, we can unlock significant opportunities for collaboration and impact. This includes realising the full potential of Islamic social finance instruments such as Zakat and Waqf.
These have been vital instruments of social responsibility for centuries. The SC is keen to work with industry to find innovative ways to better utilise these structures as a source for funding to improve lives and communities.
Likewise, corporate social responsibility and philanthropic capital are powerful enablers of social impact.
Globally, philanthropic and charitable contributions represent a significant pool of capital, estimated at about US$1.3 trillion annually. Individual contributions alone amount to roughly 1% of global GDP each year. This highlights the scale available to support social outcomes, if channelled effectively.
Beyond the capital market’s primary purpose of fundraising for businesses, there is growing recognition that it can also support social outcomes in a more organised and accountable manner.
Given the recent controversies and public concerns related to charitable fundraising, an appropriate solution would be to consolidate available resources through a regulated structure that enhances transparency, strengthens credibility, reinforces accountability, and builds public trust.
This is precisely the intent of the SC’s Guidelines on Social Exchange Platforms, which was released in September last year. It sets out regulatory expectations for platform operators and participating non-profit organisations (NPOs) including on governance, disclosure and reporting requirements.
In addition, NPOs on the platform have to meet specific eligibility criteria and requirements.
The Social Exchange, therefore, provides a transparent avenue for NPOs and social enterprises to raise funds for eligible projects, while giving private donors and investors clearer visibility on how funds are utilised and the outcomes achieved. Or, to put it simply, a better co-ordinated approach.

Ladies and gentlemen,

The SC is taking a deliberate and phased approach for the development of the Social Exchange. The first phase focuses on charitable fundraising with the platform facilitating donations to eligible NPOs.
In this initial phase, the SC has appointed LC Wakaful Digital Sdn Bhd as Malaysia’s first Social Exchange platform operator. Its platform, known as Impakrintas, went live earlier this year with an initial group of six NPOs and social impact projects listed.
For subsequent phases, we will progressively refine the framework to expand participation towards a wider range of stakeholders and broader outcomes including social impact, community-based needs and even climate-related outcomes. The phased approach is intended to ensure market readiness and safeguard long-term sustainability.
The work has also benefitted from engagements with key stakeholders including NPOs and donors. This is important as the current objective is to strengthen the credibility and trust in charities through a well-regulated, transparent and accountable structure. This includes giving contributors confidence that their funds are translated into impact.

Ladies and gentlemen,

We would like to record our thanks to the Government, particularly MOF and LHDN, for its support and incentives in advancing this initiative. This includes the RM2 million grant allocation under the 2026 Federal Budget and the tax parity treatment for donations made on the Social Exchange.
These measures are important in enhancing accessibility and participation, and will support the development of a more transparent, collaborative and well-functioning social impact ecosystem.
We also have a showcase session lined up later. It is an opportunity for participating NPOs to share their social impact projects and engage with potential donors.
On that note, I would like to thank all the stakeholders who have contributed to the realisation of this initiative.
Let us all continue to work better to connect market-based funding with Malaysia’s social aspirations and needs. Together, we can build a capital market that does not only generate wealth, but also uplifts lives.

Thank you.