Kuala lumpur: More than RM7 billion has been mobilised under the Malaysia Co-investment Fund (MyCIF) to support over 11,500 micro, small, and medium enterprises (MSMEs) and startups since 2019, as confirmed by Securities Commission chairman Datuk Mohammad Faiz Azmi. This initiative aims to boost local economic growth by enhancing investor confidence through co-investment strategies.

According to BERNAMA News Agency, MyCIF, established by the Finance Ministry in 2019, has been pivotal in attracting private capital by co-investing alongside crowd investors. To date, MyCIF has co-invested RM1.5 billion and successfully attracted an additional RM6.2 billion from private investors. The co-investment strategy implies that for every ringgit MyCIF invests, an average of RM4.13 is attracted from private investors.

At MyCIF Engagement Day, graced by Finance Minister II Datuk Seri Amir Hamzah Azizan, Mohammad Faiz explained that the fund is not a grant but an investment model where returns are reinvested to benefit other MSMEs through equity crowdfunding (ECF) and peer-to-peer (P2P) platforms. The initiative has received RM290 million from the Finance Ministry and has reinvested the government allocations 5.2 times, and over 10 times through P2P platforms alone.

Mohammad Faiz also highlighted the importance of ECF and P2P financing as alternative fundraising channels. Malaysia is among the first countries globally to establish a regulatory framework for these platforms, now home to 30 authorised platforms that collectively facilitated over RM11.9 billion in financing, benefiting more than 20,000 MSMEs.

In a separate statement, the Securities Commission introduced new initiatives under MyCIF, such as the Silver Economy Scheme and venture capital (VC) and private equity (PE) profit-sharing incentives. These are designed to encourage MSMEs in emerging growth areas, such as care-tech and agri-tech, and to make high-quality investment opportunities more accessible to investors.

The Silver Economy Scheme supports investments in sectors aiding Malaysia's ageing population, while the VC/PE Profit-Sharing Incentive aims to attract VC and PE-led deals on ECF platforms. Institutions like Gobi Partners and OSK Ventures International have expressed interest in bringing such deals to ECF investors.

Additionally, the Food Security Scheme will be expanded to include agri-tech startups, promoting innovations that align with national efforts to modernise agriculture and enhance food security. MyCIF's model is unique in Southeast Asia, allowing the government to co-invest with private investors on eligible ECF and P2P campaigns.