SCxSC 2020: ECF plus P2P platforms within Malaysia breach US$240 mil raised within 2020

ECF, P2P financing funds elevated in 2020 up to now benefitting more than 2 . 5k MSMEs

Demand for on the web brokerage services in 2020 increased 270% compared to 2019

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“Given this is a tech event, it is only fitting we all use technology to connect, ” says Investments Commission (SC) Malaysia chairman Syed Zaid Albar when offering his welcome remarks to the SC by SC Fintech Meeting 2020. This signifies the 7 ^th iteration of the annual meeting that, due to the Covid-19 pandemic, is held virtually for the first time.

Held through 5 to 7 October 2020, the big event covers discussions on a broad range of subjects that include local fintech players navigating the ‘new normal’, expense behaviour in violent times, and the part of fintech in responsible fundraising plus investing.

Zaid Albar appreciates the difficulty of the present times. Yet you can find silver linings amongst the gloom. For just one, Syed notes that will despite the challenging atmosphere, investors have ongoing to show confidence within the Malaysian capital marketplaces.

“We have seen a considerable increase in individual investor participation via digital expense managers, equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms, digital asset trades (DAX) and on the internet brokers. So , the particular retail participation on this challenging environment provides only increased, ” he says.

The silver liner certainly shines shiny here, with some intriguing discoveries. For one, the total funds raised on ECF and P2P platforms have damaged the US$240 million (RM1 billion) tag in 2020, benefitting more than 2, 500 MSMEs.

“ Supporting this development are investors beneath the age of 35, which account for 60% associated with individual investors. The presence of retail investors – constituting 84% associated with participating individual traders – further underscores the appeal of these types of platforms, ” Zaid Albar elaborates.

Other amounts of significance

There are other positive things to note. This season, SC issued three more digital expenditure management licenses, totalling seven overall. “I am pleased to remember that these digital expense managers have captivated many first-time investors… with close to 90, 000 new balances opened this year, ” Zaid Albar continues.

In addition to that, demand for on the web brokerage services also have increased – the amount of new account spaces through online-only agents, grew by greater than 270% this year in comparison 2019. “That is an almost four-fold boost. Their average investing volume has also tripled this year, so once more, lots of silver coating. ”

Zaid Albar goes on to say that SC authorized three digital asset exchanges last year – and all three have gone live with four digital assets permitted on trading upon these platforms. Along, these DAXes have experienced more than 400, 000 accounts being opened up, with the value of deals surpassing US$24 million (RM100 million) in the month of Aug.

According to Zaid Albar, the country has seen fast adoption of electronic technologies across every economic sectors. “Companies have relied on digital tools and means to reach out to customers, as well as to ensure uninterrupted operations due to the bodily limitations imposed.

“The SOUTH CAROLINA is continuing to work together with industry in order to leverage these unforeseen but positive results to advance our digital agenda for the funds market. One would extreme caution, of course , about digitisation and that, is that as market participants scale up their use of technology and electronic tools, we need to recognize the risks that come with improved technology adoption, ” he adds.

“The SC will remain vigilant and can continue to enhance the market’s cyber resilience, particularly against cyber-attacks plus online scams. ”

Zaid Albar also got the opportunity to remind traders to exercise “common sense” during investing.

“Verify the individual or organization offering capital marketplace products or services – they are on SC’s open public register. Please furthermore help us simply by reporting any dubious activities. As you know the amount of online scams will be increasing, so traders must avoid being deceived in their search for yield in this low interest rate environment, ” he explains.

“The SC remains committed to promote what we might contact the Triple The capital market; Accessible, Agile and Responsible. That includes broadening the range of alternative fundraisings and investment opportunities as the market matures, and further market innovations are welcomed plus encouraged. ”