KUALA LUMPUR (Jan 17): The Securities Commission Malaysia (SC) has launched the Social Exchange Pilot Programme (SEPP25) with five non-governmental organisations (NGOs) to spearhead Malaysia’s journey towards its first fundraising platform for socially impactful projects.
The SEPP25, unveiled on Friday, is a significant milestone in the establishment of Malaysia's Social Exchange, which is expected to be fully operational in 2026, the commission said in a statement.
This initiative, first announced by Prime Minister Datuk Seri Anwar Ibrahim at the Global Forum on Islamic Economics and Finance in May 2024, seeks to mobilise private sector funding and philanthropic capital for projects with positive social outcomes.
The programme's pilot phase will feature five NGOs: Malaysian Association for the Blind, Malaysian Relief Agency, Mercy Malaysia, Suriana Welfare Society Malaysia, and WWF-Malaysia.
These organisations will provide data and insights to help the SC refine the Social Exchange framework, it said.
"Key components on the SEPP25 will include social project fundraising requirements to be fulfilled, social impact report and capacity building programmes.
"In addition, the fundraising onboarding process based on parameters to be set by the SC will also demonstrate their ability to report project outcomes accordingly," the statement read.
SC chairman Datuk Mohammad Faiz Azmi emphasised that the Social Exchange is a critical step in the commission's efforts to align with the 2025 Asean Chairmanship theme of Inclusion and Sustainability. He highlighted its alignment with Malaysia's Ekonomi Madani aspirations, which focus on fostering a fair and inclusive economy.
The Social Exchange is a proposed structured fundraising platform designed specifically to support projects with positive social outcomes.
The SEPP25 will build upon existing SC initiatives, such as the "Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028)" and "Maqasid Al-Shariah Guidance for the Islamic Capital Market".
The Social Exchange takes cues from similar initiatives, such as the platform created by the Securities and Exchange Board of India, which uses capital market infrastructure to facilitate fundraising for social impact projects.
An advisory committee and implementation committee have been established to oversee the programme’s phased rollout. The platform is designed to ensure transparency, enabling donors to track the impact of their contributions, and aims to consolidate information on participating NGOs and social enterprises to drive meaningful change.
This pilot programme is a step towards creating a regulated environment for social enterprises and NGOs to meet their funding needs effectively.
The SC added is optimistic that the Social Exchange will solidify Malaysia's leadership in Islamic finance while bolstering the nation’s social impact ecosystem.