Welcome Remarks at the MyCIF Nationwide Roadshow ‘Empowering Finance, Advancing Growth’

Speaker: Dr Wong Huei Ching, Executive Director - Digital Strategy and Innovation, Securities Commission Malaysia

Location: The Light Hotel, Penang
Delivered: 18 February 2025

Yang Berhormat (YB) Dato' Hj Rashidi Zinol,
Ahli Majlis Mesyuarat Kerajaan Negeri Pulau Pinang dan Pengerusi Jawatankuasa Perdagangan, Pembangunan Keusahawanan dan Luar Bandar,

Yang Berusaha Encik Mohamad Haris Kader Sultan,
Ketua Eksekutif Pihak Berkuasa Pelaksanaan Koridor Utara (NCIA),

Tetamu Kehormat, rakan-rakan media, Dato’ – Dato’, Datin – Datin
Tuan-tuan dan puan-puan,

Selamat Pagi dan Salam Sejahtera.

Full Speech

Kami dengan berbesar hati membawa Jerayawara Dana Pelaburan Bersama Malaysia (MyCIF) ke Wilayah Zon Utara – sebuah pusat inovasi, industri, dan pertumbuhan ekonomi yang pesat.
Saya ingin merakamkan jutaan terima kasih atas kesudian semua untuk bersama-sama menyertai kami di Light Hotel, Seberang Jaya, bagi majlis pelancaran Jerayawara MyCIF Nasional yang pertama, bertemakan “Empowering Financing, Advancing Growth” atau “Memperkasa Pembiayaan, Memacu Pertumbuhan”.
Saya amat kagum dan terharu atas sambutan yang begitu memberangsangkan daripada pelbagai komuniti perniagaan dan wakil industri. Saya dimaklumkan bahawa permintaan untuk pendaftaran bagi ruang pameran terus diterima walaupun selepas tarikh akhir pendaftaran! Ini benar-benar mencerminkan ekosistem keusahawanan di wilayah utara ini begitu dinamik dan berkembang pesat.
Yang Berhormat Dato' – kami amat berterima kasih atas sokongan berterusan serta komitmen yang diberikan oleh YB dalam memajukan pembangunan keusahawanan bahagian utara. Usaha gigih YB memberikan sokongan kepada usahawan tempatan melalui pelbagai inisiatif untuk memperkasakan sektor keusahawanan dan perdagangan hingga ke peringkat antarabangsa amat dihargai.
Kami juga amat berbesar hati dengan sokongan yang telah diberikan oleh Pihak Berkuasa Pelaksanaan Koridor Utara atau Northern Corridor Implementation Authority (NCIA) – Encik Haris Kader, Datin Shahdee, dan rakan-rakan seperjuangan NCIA yang lain atas kerjasama yang telah dipupuk sejak tahun lalu dalam menjayakan Jerayawara (roadshow) ini.
Setinggi-tinggi penghargaan juga diucapkan kepada para pengendali platform pendanaan ramai berasaskan ekuiti atau Equity Crowdfunding (ECF) dan pembiayaan antara rakan setara atau Peer-to-peer Financing (P2P). Segala perkongsian dan pandangan anda amatlah penting dalam menjayakan inisiatif ini.

Setting the Scene: Why the Northern Region?
The Northern Region is home to about 20% of MSMEs in Malaysia, making it a key driver of economic growth, particularly in agriculture and manufacturing.
Agriculture alone accounts for nearly 10% of the region’s GDP and is a key source of national food security.
The region has also shown steady economic growth, with its robust manufacturing sector contributing over 20% of Malaysia’s total manufacturing GDP.
This underscores the Northern Region’s importance in driving industrial expansion, sustaining food production, and strengthening Malaysia’s overall economic resilience.

Introducing MyCIF: Empowering Businesses through Alternative Finance
Businesses often seek grants and bank loans for growth, as these financing options are well-established and widely trusted.
While grants can provide an initial financial boost, they do not sufficient for long-term stability or scalability for businesses. Early stage businesses in particular, with limited track record and collateral, struggle to secure bank loans.
Alternative finance channels like ECF and P2P financing can bridge this gap. ECF and P2P connects early to growth stage companies to investors with greater risk appetite to undertake the company’s development and funding needs.
In fact, ECF and P2P financing activities have been regulated by the Securities Commission Malaysia (SC) since 2015. We now have 26 ECF and P2P players, facilitating alternative finance to businesses in Malaysia.
In 2019, the Malaysia Co-investment Fund or MyCIF was established to further encourage the growth of alternative finance. Funded by MOF and administered by the SC, MyCIF co-invests alongside private investors.

Government Backing and Co-Investment: A Strong Partnership

Ladies and Gentlemen,
As a last mile investor, MyCIF’s co-investment model relies on the wisdom of the crowd and amplifies private investments. With MyCIF, private investments have grown 3.5x since inception.
More importantly, Government co-investing alongside the crowd shows confidence in Malaysian businesses which in turn encourages more private investments in MSMEs.
MyCIF implements a 1:4 co-investment ratio under the General Scheme. This means that MyCIF will invest RM1 for every RM4 successfully raised from private investors on ECF and P2P platforms.
Over the years, through more preferential co-investment ratios (1:2), MyCIF has guided investments into key national priority areas, such as food security, environmental and social impact segments.
With a seed funding of RM260 million, MyCIF has co-invested more than RM1 billion in over 9,000 MSMEs. This has helped businesses access funding through ECF and P2P financing platforms, reflecting growing investor and business interest in alternative financing options.
Recipients of MyCIF include a diverse range of companies - from traditional businesses to tech-enabled and innovative businesses. About 93% of these businesses are MSMEs, reinforcing its role in strengthening this vital sector.
MyCIF has fuelled the growth of several notable startups and businesses from the Northern region. Angkasa X, a tech-social inclusion company with a presence across ASEAN, filed for listing on Nasdaq in 2023, highlighting the impact of alternative financing in driving innovation and business expansion.
Fuciphagus, a bird’s nest processing company, successfully raised funds twice through ECF, demonstrating the power of repeat investments. Meanwhile, Molinson Biotech, an agritech company, is transforming oil palm waste into bio-fertiliser, contributing to sustainable agriculture. These success stories highlight how MyCIF supports high-potential businesses in scaling and expanding their impact.
Recently, to spur innovation in Islamic finance while complementing existing schemes, MyCIF has been allocated RM40 million under the Federal Budget 2025 announcement. This is to drive greater adoption of Islamic risk-sharing financing solutions on ECF and P2P platforms.
With the introduction of new incentives, effective from 2025 until December 2026:
i. MyCIF will invest on a first-loss basis in ECF and P2P campaigns structured under Islamic risk-sharing models (Musharakah and Mudharabah).
ii. For P2P campaigns, MyCIF will provide additional investment at a 0% financing rate.

Roadshow Objectives and What Attendees Can Expect

Ladies and gentlemen,
Many businesses outside Klang Valley remain unaware of the immense opportunities that ECF and P2P financing offer. In fact, only 17% of ECF and P2P funded businesses come from northern region.
This is why expanding the MyCIF Roadshow across regions is crucial—to showcase MyCIF’s role in unlocking valuable alternative financing opportunities at national level.
The sessions today are carefully crafted to educate attendees about ECF and P2P financing, providing them with the knowledge, tools, and connections needed to access these funding options.
I encourage all of you to actively engage, ask questions and explore the funding options and MyCIF incentives available.

Penutup
Hadirin sekalian,
Sebagai penutup, saya sekali lagi mengalu-alukan dan berterima kasih atas kesudian semua dalam menjayakan Jerayawara MyCIF pada hari ini.
Terima kasih yang tak terhingga kepada pihak NCIA, serta semua rakan kongsi, penceramah, dan peserta yang terlibat pada hari ini.
Untuk mengetahui dengan lebih lanjut mengenai peluang pembiayaan ECF dan P2P dan bagaimana kaedah-kaedah alternatif ini boleh memanfaatkan pelbagai PMKS, saya ingin menjemput anda untuk menghadiri sesi seterusnya—perbincangan panel yang menampilkan pandangan daripada pengendali dan pakar -pakar ECF dan P2P.
Sesi ini, yang akan dikendalikan oleh Azrina Azmel, Ketua Pasaran Digital Teras di SC, akan mendalami dan mengupas dengan lebih lanjut mengenai topik-topik ini.
Terima kasih dan semoga sesi-sesi berikut pada hari ini dapat memanfaatkan semua yang hadir.