MyCIF RM80m matching fund would spur participation from larger SMEs

Chief Executive Officer & Co-Founder Ata Plus Sdn Bhd, Elain Lockman

KUALA LUMPUR 30 Oct - The RM80 million matching fund under the Malaysia Co-investment Fund (MyCIF), would spur participation from larger SMEs.

Chief Executive Officer & Co-Founder Ata Plus Sdn Bhd, Elain Lockman said, the industry's players welcome the continued support by the Government into these alternative asset classes.

''Although, we await details on how the fund will be apportioned between ECF and P2P,'' said Elain, who is also the president of Registered Digital Markets Association, in a statement here today.

In the national Budget 2022 tabling yesterday, Minister of Finance, Datuk Seri Tengku Zafrul Aziz announced that the MyCIF matching fund has been increased to RM80 million, compared to RM50 million when it was first introduced in 2019.

Elain said, based on an announcement made by the government on 17th March 2021 and at the SC Annual Report 2020 on 19th March 2021, issuers can raise up to a maximum of RM20 million on ECF platforms.

''We hope that that this will encourage the participation of larger SMEs and give them a feasible alternative funding channel,'' she said.

''In looking at the trends and the current SME financing needs, it is highly likely that the crowdfunding market would continue to flourish in 2022.

''This is, as entrepreneurs seek funds to finance or expand current businesses or to start new ventures,'' she said.

As a leading ECF player said Elain, Ata Plus will continue to look into more inclusive options for micro, small and medium enterprises (MSMEs) that makes up a sizeable market in Malaysia and ASEAN. 

''We will support them through innovation and delivery of new and relevant products,'' she said. - DagangNews.com