MyCIF boosts MSMEs with RM638m co-investment in 3,635 businesses

The Malaysia Co-Investment Fund (MyCIF) has co-invested RM638 million in 3,635 micro, small, and medium enterprises (MSMEs), fueling their growth and development , according to its Annual Report 2022 released today.

In a statement today, the Securities Commission Malaysia (SC) revealed an increase in funds raised through equity crowdfunding (ECF) and peer-to-peer (P2P) platforms, reaching a total of RM1.7 billion in 2022.

It said the 26% year-on-year growth in the ECF and P2P markets demonstrates the rising popularity of alternative financing options among investors and businesses. MyCIF invested RM282 million in 2022, a substantial rise from RM193 million the previous year.

MyCIF’s unique public-private co-investment model, executed through alternative financing platforms, has made it the pioneering initiative of its kind in Southeast Asia. 

Launched as part of Budget 2019 by the Ministry of Finance, MyCIF has become a driving force in supporting MSMEs.

The Annual Report also highlighted MyCIF’s commitment to addressing under-served segments. 

By implementing a special 1:2 co-investment ratio for agricultural businesses, the fund facilitated the successful raising of funds for nearly four times more agricultural issuers through ECF and P2P platforms.

Moreover, 28% of MyCIF funds were allocated to non-Klang Valley campaigns in 2022, surpassing the 21% allocation in 2021.

SC chairman Datuk Seri Awang Adek Hussin commended MyCIF’s instrumental role in the growth of the ECF and P2P lending spaces. 

He acknowledged the tenfold increase in the number of firms raising funds through these platforms since the establishment of MyCIF.

The co-investment total reached an impressive RM638 million, benefiting 3,635 Malaysian MSMEs by the end of 2022. 

MyCIF’s positive net return on capital of RM16.5 million further exemplifies its effectiveness in supporting business growth.

The fund has received a total allocation of RM230 million, with an additional RM40 million allocated in Budget 2023.

Looking forward to 2023, MyCIF aims to drive innovation in strategic sectors of the Malaysian economy. 

Building on successful initiatives for agricultural businesses, the fund plans to extend the special 1:2 co-investment ratio to the environmental, social, and governance (ESG) sector.

These efforts align with the national sustainable development agenda, fostering a dynamic and progressive agricultural sector while promoting ESG and sustainability sectors.

The Annual Report noted MyCIF’s commitment to good governance and transparency, ensuring public funds are deployed effectively and benefiting the intended recipients.

MyCIF, established under the Ministry of Finance, aims to enhance capital market access and inclusivity for under-served segments. –TMR