Strong Impact Since Inception
Since its establishment, MyCIF has co-invested in financing over 9,500 MSMEs across a variety of sectors, from agriculture and manufacturing to services and tech-based start-ups. This achievement not only signals growing trust and awareness among MSMEs but also highlights the maturing ecosystem of digital financing platforms in Malaysia.
The use of ECF and P2P platforms as financing intermediaries aligns with national objectives to democratise capital access while encouraging financial innovation and reducing dependency on traditional financing institutions.
2024 Marks a Record Year of Investment Activity
According to its newly released Annual Performance Report 2024, MyCIF recorded RM264 million in co-investments for the year alone, contributing to a cumulative total of RM1.19 billion by the end of 2024. This reflects strong momentum in investor participation and issuer engagement through the digital investment platforms.
These investments not only enabled MSMEs to expand operations, hire talent, and digitalise services, but also facilitated greater regional participation from underserved and rural communities, particularly in Sabah, Sarawak, and the East Coast.
Private Sector Confidence and Efficient Public Funding
One of the most significant indicators of MyCIF’s effectiveness is its ability to crowd-in private capital. For every RM1 of government money, MyCIF has catalysed RM4.10 from private investors, representing a 4.1x leverage. This shows strong private sector confidence in the businesses MyCIF backs and in the platforms that deliver the financing.
Moreover, the RM1.19 billion total co-investments made to date represents a 4.6x multiple of the RM260 million disbursed by the Government since 2019. This remarkable ratio underscores MyCIF’s efficient use of public funds and its role in stretching every public ringgit to achieve greater economic outcomes.
Targeted Schemes for Greater Impact
In addition to the General Scheme’s 1:4 co-investment ratio, MyCIF has introduced targeted co-investment initiatives for strategic and underserved sectors, notably:
- Food Security Scheme
- Environmental & Social Enterprise Scheme
These targeted schemes provide more favourable co-investment terms (1:2 ratio) to encourage funding in socially beneficial and high-impact sectors. In 2024, investments in these segments doubled to RM7 million, compared to RM3.4 million in 2023, showcasing MyCIF’s expanded commitment to resilience, sustainability, and inclusivity.
Driving Islamic Finance Innovation
In line with Malaysia’s aspiration to be a global hub for Islamic finance, MyCIF has taken a bold step under Budget 2025 by earmarking RM40 million to promote innovative Islamic risk-sharing financing structures such as Musharakah and Mudharabah through ECF and P2P platforms.
Key incentives introduced include:
- First-loss basis investments in ECF and P2P campaigns that adopt Islamic risk-sharing models. This structure enhances investor protection and risk-sharing dynamics aligned with Shariah principles.
- 0% financing rates for P2P Islamic campaigns, significantly reducing the cost of capital for MSMEs while maintaining investor returns.
This initiative is expected to enhance the diversity and sophistication of Malaysia’s alternative finance market while promoting financial inclusion through ethical financing.
Supporting Social Impact and Waqf Projects
In July 2024, MyCIF launched its Environmental & Social Impact Scheme, aimed at empowering MSMEs focused on delivering social and environmental benefits. The scheme supports enterprises in key areas such as:
- Environmental sustainability
- Community upliftment
- Food security
- Education and healthcare
- Waqf asset development
This initiative not only fills a critical funding gap for mission-driven businesses but also helps to mainstream social enterprise financing within the broader capital market framework.
Nationwide Outreach to Build MSME Awareness
Recognising the importance of outreach and education, MyCIF launched its inaugural Nationwide Roadshow in Penang in February 2025, under the theme “Empowering Financing, Advancing Growth.” The event, supported by the Northern Corridor Implementation Authority (NCIA), brought together MSMEs, investors, regulators, and platform operators to share insights and explore funding opportunities.
The roadshow offered hands-on guidance to MSMEs on navigating alternative financing options, preparing successful campaigns, and understanding investor expectations.
To build on this momentum, the next roadshow will be held in Kota Kinabalu on 31 July 2025, aimed at increasing awareness among entrepreneurs in Sabah. The session will further enhance capital market connectivity in East Malaysia, allowing local MSMEs to better access national funding initiatives and networks.
Looking Ahead: Building a Resilient MSME Financing Ecosystem
With RM1.19 billion in co-investments achieved, MyCIF stands as a model for how government-private sector collaboration can deliver inclusive, scalable, and impactful financial solutions. The focus ahead includes:
- Expanding targeted co-investment schemes for underserved sectors
- Increasing Islamic finance adoption through structured incentives
- Deepening outreach efforts across rural and semi-urban communities
- Enhancing platform governance and investor protection
As Malaysia’s MSMEs continue to drive innovation, employment, and exports, MyCIF remains steadfast in its mission to enable growth, unlock capital, and create lasting socio-economic value.
