Alternative Assets

Investment Throught Digital Platforms

Equity Crowfunding

What is ECF?

Equity Crowdfunding (ECF) is an innovative form of alternative fundraising that allows small businesses to raise capital from the public using online platforms registered by the Securities Commission Malaysia. To date, 10 ECF platforms have been registered.

ECF allows these small businesses to offer equity in their companies to investors, who in turn invest in the idea they see potential in. With ECF, investors have the opportunity to diversify their investments beyond the traditional asset classes.

Who can invest in ECF?

Investment in ECF is open to all investors, subject to the following limits:

  • Retail investors (persons who are not sophisticated investors)
    • A maximum of RM 5,000 per company with a total amount of not more than RM 50,000 within an 12-month period
  • Angel investors (accredited by the Malaysian Business Angels Network)
    • A maximum of RM 500,000 in total within a 12-month period
  • Sophisticated investors (persons within the categories of investors set out in Part 1, Schedules 6 and 7 of the Capital Markets and Services Act 2007)
    • No restriction on investment amount
  • Investors are allowed a six-business-day cooling period discretion to withdraw their entire investment.

Peer-to-Peer Financing

What is P2P?

Peer-to-Peer (P2P) financing is yet another innovative form of financing that broadens the ability of entrepreneurs and small businesses to unlock capital from a pool of individual lenders in small amounts.

P2P allows businesses to borrow and investors to lend capital through online platforms registered by the Securities Commission Malaysia. To date, 11 P2P platforms have been registered.

Who can invest in P2P?

Investment in P2P is open to all investors, subject to the following limits:

  • Retail investors (persons who are not sophisticated investors)
    • A maximum of RM 50,000 per platform at any period of time
  • Angel investors (accredited by the Malaysian Business Angels Network)
    • No restriction on investment amount
  • Sophisticated investors (persons within the categories of investors set out in Part 1, Schedules 6 and 7 of the Capital Markets and Services Act 2007)
    • No restriction on investment amount

Digital Investment Management

What is digital investment management?

  • Digital Investment Management (DIM) incorporates innovative technologies into the fund management business, to allow offering of automated discretionary portfolio management services to investors.
  • In 2017, the Securities Commission Malaysia introduced a regulatory framework for DIM.
  • Digital investment managers can replicate many of the activities performed by traditional fund managers through online access.
  • Investors' risk appetite will be assessed and evaluated either by online questionnaires or other online methods. Based on the investor's input, an appropriate investment portfolio is assigned, and the digital investment manager will then conduct automated rebalancing and reallocation during the management period.

Important Considerations

  • All investments carry risks. Ensure that you invest through one of the approved ECF, P2P & DIM platforms.
  • And as always, perform your own due diligence and/or refer to licensed financial advisers before you invest.
  • We encourage you to find out more about each platform provider before making an informed investment decision

List of Registered Recognized Market Operators

Equity Crowdfunding (ECF)

1337 Ventures Sdn Bhd

Ata Plus Sdn Bhd

Crowdo Malaysia Sdn Bhd

Ethis Ventures Sdn Bhd Eureeca SEA Sdn Bhd   FBM Crowdtech Sdn Bhd

Fundnel Technologies Sdn Bhd MyStartr Sdn Bhd   Pitch Platforms Sdn Bhd
Crowdplus Sdn Bhd

Peer-to-Peer Financing (P2P)

Bay Smart Capital Ventures Sdn Bhd B2B Finpal Sdn Bhd Capsphere Services Sdn Bhd
FBM Crowdtech Sdn Bhd MicroLEAP PLT Modalku Ventures Sdn Bhd
Peoplender Sdn Bhd QuicKash Malaysia Sdn Bhd

Digital Asset Exchange (DAX)

Luno Malaysia Sdn Bhd SINEGY Technologies (M) Sdn Bhd   Tokenize Technology (M) Sdn Bhd

Property Crowdfunding (PCF)

EdgeProp Sdn Bhd

 

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