Kuala lumpur: The government will allocate an additional RM20 million to the Malaysia Co-investment Fund (MyCIF), in addition to the RM30 million announced in Budget 2026, bringing the total allocation this year to RM50 million. Finance Minister II Datuk Seri Amir Hamzah Azizan said this reflects the government's confidence in the model and commitment to scaling what has proven effective.
According to BERNAMA News Agency, Amir Hamzah highlighted that the additional investment allows for expanded initiatives under MyCIF to tackle future challenges. The launch of a new 'silver economy scheme' aims to channel investments into micro, small, and medium enterprises (MSMEs) that focus on services and innovative solutions catering to an ageing population. This includes sectors such as remote elderly care, assisted living, and retirement planning.
MyCIF is also introducing a profit-sharing arrangement to integrate venture capital (VC) and private equity (PE) deals with equity crowdfunding (ECF) platforms. This move is expected to democratize access to professionally sourced and vetted investment opportunities. The fund will also expand its food security scheme to support agritech startups, including those involved in precision farming, sustainable aquaculture, and supply chain technology.
In 2025, 89 percent of MyCIF investments were directed towards micro and small businesses. Amir Hamzah emphasized that public money is more effective when the rakyat leads and the government provides support. MyCIF operates within the framework of the Fourth MADANI Budget, which includes RM50 billion in loans and guarantee facilities for 2026 to support local entrepreneurs, with RM2.5 billion allocated for microfinancing through TEKUN and Bank Simpanan Nasional.
The government has also introduced a 50 percent additional tax deduction for artificial intelligence and cybersecurity training to prepare MSMEs for a digital-first economy. Initiatives like the green investment tax allowance and targeted grants are designed to support the transition to sustainable practices demanded by global supply chains.
Amir Hamzah also noted efforts by the Securities Commission Malaysia (SC) and Bursa Malaysia to strengthen the LEAP Market's value proposition. By facilitating the transition of ECF companies with a proven fundraising track record to a LEAP listing, the government aims to enhance visibility and provide a seamless transition between private and public markets. Additionally, the SC plans to streamline the transfer from the LEAP Market to the ACE Market by removing the exit offer requirement, which will reduce costs and enhance certainty for businesses. This initiative is expected to be implemented by the second half of the year, strengthening the overall funding pathway for MSMEs.