Micro, Small and Medium Enterprises (MSMEs) are key to the development of the Malaysian economy, contributing to more than a third of the local Gross Domestic Product (GDP). While this key segment continues to grow, various measures have been undertaken to facilitate its growth, among others, the establishment of alternative fundraising avenues in the capital market for the MSMEs to seek market-based financing to support their expansion agenda.
Since the introduction of alternative avenues, the equity crowdfunding (ECF) and peer-to-peer financing (P2P financing) platforms have continued to gain traction with total funds raised amounting to RM1.34 billion in 2020.
As a leader in Islamic economy globally, Malaysia’s MSMEs seeking Shariah-compliant fundraising are also expected to benefit from these alternative fundraising avenues. With a comprehensive Halal ecosystem, the country’s Halal market is expected to grow to US$113.2 billion in 2030 from US$68.4 billion in 2018.
This indicates immense potential for Halal players from the MSME segment to tap into ECF and P2P financing in the Islamic capital market (ICM) as it is well placed to support this development.
“Since the introduction of alternative avenues, the equity crowdfunding (ECF) and peer-to-peer financing (P2P financing) platforms have continued to gain traction with total funds raised amounting to RM1.34 billion in 2020“
ABOUT THE FORUM
The Securities Commission Malaysia (SC) and Halal Development Corporation (HDC) are the joint organizers for the inaugural SC-HDC Forum 2021, themed “Enabling Growth through the Islamic Capital Market”.
Supported by Capital Markets Malaysia (CMM), the two-day virtual event aims to facilitate conversations and knowledge sharing surrounding the development of the Halal economy through the ICM and to promote the participation and growth of industry players within Malaysia’s Halal ecosystem.
The forum will gather relevant stakeholders within the Halal industry to share knowledge, insights and solutions covering a broad range of topics on fundraising and scalability of MSMEs.