KUALA LUMPUR: The government regulatory framework Malaysia Equity Crowdfunding Framework (MyECF) has approved six equity crowdfunding platforms that will kickstart by the first quarter of 2016.
Deputy Finance Minister Datuk Chua Tee Yong said these platforms have been rigorously selected from a pool of 27 applicants both foreign and domestic. “Organisations, particularly start-ups and small and medium enterprises, have to convince these six crowdfunding platforms by submitting a business model, reveal their cash flow and have the intention to raise financing by other means instead of the traditional methods of obtaining loans,” he said. Chua was speaking to reporters at the launch of CrowdPlus.asia,
Asean’s first equity crowdfunding platform, here yesterday. He said approved organisations will have their details published on the platform’s website, which is open to registered interested investors.
The financing amount that can be raised is between RM3 million and RM5 million in the span of the organisation’s lifetime and it also depends on market reaction to the organisation’s crowdfund-ing, he said.
“This is a figure that has been set by the Securities Commission (SC) as a start because equity crowdfunding is not regulated in the Asean region and we are the first country to have it.
“We want to make sure when companies and investors invest in crowdfunding, they realise the risks, and we have set safeguards to protect those who participate,” he said. He said the government has put in place a strong regulatory framework with the participation of Bank Negara, the SC and Bursa Malaysia in the financial market. — Bernama