Accra:Funding Societies Malaysia The RM270 million allocation under Budget 2027 aims to assist small and medium enterprises (SMEs), mid-sized companies, and social enterprises in attracting private capital via equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms, thereby reducing financing costs and barriers to capital access.

According to BERNAMA News Agency, Funding Societies Malaysia's country head, Chai Kien Poon, emphasized that private investors would bring risk discipline and additional capital to businesses that are not typically reached by banks. The initiative includes up to RM1 billion in financing from the Bumiputera Agenda Steering Unit (TERAJU) for Bumiputera contractors, particularly benefiting those in the G1 to G4 categories by providing necessary mobilisation capital.

Furthermore, Chai highlighted that a flat RM10 stamp duty on P2P financing agreements, effective from January 1, 2027, to December 31, 2030, would further reduce capital access costs for underserved and unserved micro, small, and medium enterprises (MSMEs) amidst market uncertainties.

The Budget also announced guarantees by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia (CGC), which are expected to lower risk premiums and attract private institutional funds to P2P platforms. Funding Societies Malaysia plans to expand partnerships with CGC and explore collaboration with SJPP to enhance MSMEs' access to capital and support job retention and creation.

The priority is to ensure deployment with clear eligibility, fast processes, and outreach to MSMEs lacking collateral or a lengthy banking history, focusing on small-ticket and short-term revolving financing. Funding Societies Malaysia is committed to working with the government and the Securities Commission to effectively deliver this support to the businesses in need.