- Invested RM289 million in 2023, boosting 3, 587 Malaysian SMEs
- New RM100 million planning in 2024 helps crops, healthcare and education areas
In a display of support for micro, small, and medium enterprises ( MSMEs ) across Malaysia, the Malaysia Co- Investment Fund ( MyCIF ) has co- invested US$ 61.25 million ( RM289 million ) through alternative financing platforms in 2023. According to the most recent MyCIF Annual Report released in May by the Securities Commission Malaysia (SC), this investment has substantially spurred the development and profitability of 3, 587 Enterprises.
MyCIF, established by the Ministry of Finance under Budget 2019, has been a key pressure in the financing environment, utilizing capital fundraising (ECF ) and peer- to- gaze ( P2P ) financing platforms to channel many- needed funds into MSMEs. Commenting on the report, SC Chairman Dr , Awang Adek Hussin ( pic ) highlighted MyCIF’s catalytic role, noting that the RM289 million invested last year has attracted nearly US$ 424 million ( RM2 billion ) in private investments.
” The agriculture market, in particular, has seen a significant 86 % increase in lenders supported by MyCIF’s crops system. Also, we have broadened our approach, supporting a higher percentage of MSMEs outside the Klang Valley, increasing from 40 % to 49 % year- on- time”, Awang Adek stated. This development demonstrates MyCIF’s commitment to promoting inclusivity and making sure that MSMEs from all sectors can benefit from these economic initiatives.
Since its founding, MyCIF has received a full allocation of RM250 million from the authorities, properly co- investing RM930 million in over 6, 000 Enterprises. This has generated a 3.7 days multiple effect, drawing in RM3.82 billion in personal assets and bringing the total funds raised with MyCIF’s aid to a remarkable RM4.75 billion. Furthermore, MyCIF has achieved a online good return on investment of RM20.7 million, which is 8.2 % of the total federal allocation.
]RM1 = US$ 0.212]
Looking back, MyCIF has been allocated an extra RM100 million in Budget 2024. This innovative funding will support initiatives in key areas such as agriculture, healthcare, education, culture, society, and Waqf resource development through State Islamic Religious Councils, aligning with the national food security and sustainability agenda.
The recent MyCIF Open Day, attended by Finance Minister II , Amir Hamzah Azizan, celebrated MyCIF’s five- year impact on MSMEs. Two additional new incentives, effective until the end of 2025, were also announced at the event that aim to encourage MSMEs in the upstream segments of the agriculture and bio-ecosystem sectors.  ,
These include investments made in eligible P2P campaigns at a 0 % financing rate, as well as the elimination of dividends earned in eligible ECF campaigns. Prime Minister , Anwar Ibrahim further extended these incentives to MSMEs involved in Waqf asset development projects, recognizing Waqf’s critical role in enhancing national food security.
The success of MyCIF serves as a pillar of the SC’s 5-year MSME Roadmap, which aims to increase access to the capital market for MSME and mid-tier companies ( MTC ). The main goal is to increase MSME and MTC capital market fundraising by more than 5 fold, from RM6.3 billion in 2023 to RM40.0 billion by 2028. SC Malaysia expressed confidence that MyCIF’s innovative co-investment model will undoubtedly play a crucial role in achieving this ambitious national target because of its proven multiplier effect.