KUALA LUMPUR (May 28): The Securities Commission Malaysia (SC) said it will come out with a detailed framework on the implementation of Malaysia’s first Social Exchange “in due course”.
The framework aims to provide governance and assurance requirements to ensure funds raised in the Social Exchange will be properly used as intended, said SC chairman Datuk Seri Dr Awang Adek Hussin.
“The proposed establishment of the country’s first Social Exchange reflects the government's commitment towards a holistic development approach in nation building, in line with the Madani Economy framework to assist the needy segment of population,” Awang Adek said in a statement on Tuesday.
“By having a dedicated fundraising platform for projects with positive social outcomes, the SE (Social Exchange) will further facilitate mobilisation of private and philanthropy capital in meeting the needs of the underprivileged,” he added.
The Social Exchange — a structured approach for participation of private capital in projects with positive social outcomes — was one of the two initiatives announced by Prime Minister Datuk Seri Anwar Ibrahim at the Global Forum of Islamic Economics and Finance earlier on Tuesday.
The other initiative is introducing fundraising for waqf developments through peer-to-peer (P2P) financing and equity crowdfunding platforms, with the government providing matching funding through the Malaysia Co-Investment Fund (MyCIF) at 0% financing rate.
Awang Adek said to support fundraising of waqf development via equity crowdfunding and P2P financing platforms, new incentives under MyCIF will be introduced to benefit micro, small and medium enterprises (MSMEs) undertaking waqf-related projects, especially in the development of waqf land in the upstream agriculture and bio-economy segments.
“This will encourage more MSMEs to work with state Islamic religious councils in business ventures that aim for positive social outcomes, at the same time, contributing to the national food security agenda,” he said.