KUALA LUMPUR: CAPBAY lauds the RM270mil provision for additional co-investment funds to attract private capital through peer-to-peer financing (P2P) and equity crowdfunding (ECF) platforms.
The measure was announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2027 on Friday.
The provision builds on Malaysia’s experience with public-private co-investment to assist in funding growth, especially for small and medium enterprises (SMEs).
Since mooted in 2019, the Malaysia Co-Investment Fund (MyCIF) had co-invested RM1.5bil alongside RM6.21bil in private investment by December last year, supporting more than 11,500 micro, small and medium enterprises, according to the Securities Commission Malaysia (SC).
The model has since expanded with the introduction of the Strategic Co-Investment Fund (CoSIF), jointly launched by the Ministry of Investment, Trade and Industry and the SC in February 2025.
CoSIF supports SMEs and mid-tier companies in strategic sectors under the New Industrial Master Plan 2030 through ECF and P2P platforms.
“MyCIF has demonstrated how government funding can bring private investors alongside it to support businesses.
“The subsequent introduction of CoSIF shows how this approach can serve different national development priorities.
“We see growing interest among government agencies in co-investment models and the additional RM270mil provides an opportunity to build on
that momentum,” said Ang Xing Xian, co-founder and group chief executive officer of CapBay.
The fintech company also welcomes the proposed continuation of the RM10 stamp duty treatment for P2P financing agreements from Jan 1, 2027 to Dec 31, 2030, which helps keep financing costs manageable for SMEs while providing greater certainty for businesses and platform operators.
“The renewal of this relief is a significant win for the P2P financing industry and the SMEs it serves.
“Alongside additional co-investment support, it reinforces the government’s recognition of P2P financing as an increasingly mainstream channel for business funding,” said Ang.
Since the SC introduced its P2P regulatory framework in 2016, SC-registered platforms have become an established channel for business financing.
According to the SC Annual Report 2025, alternative financing avenues raised RM5.7bil for MSMEs and mid-tier companies in 2025, a year-on-year increase of 39%.
P2P financing raised RM2.8bil in 2025, up from RM2.5bil in 2024.
Budget 2027 also provides up to RM1bil in financing through Teraju as part of its support for Bumiputera contractors and businesses.
As a Teraju partner under the Islamic Working Capital Project Financing (i-WCPF) programme, CapBay provides eligible Bumiputera businesses with Shariah-compliant working capital and project financing.
CapBay is an award-winning multi-bank supply chain finance and P2P financing platform that enables SMEs to unlock cash flow trapped in their supply chains through innovative financing solutions.
Using a proprietary credit-decisioning model, CapBay connects businesses of all sizes to banks and investors, facilitating
access to high-quality financing opportunities.
The company is regulated by the SC.
Since its launch in 2016, CapBay Group has disbursed over RM6.1bil through more than 45,000 financing notes, supporting over 2,700 SMEs, underscoring the role of alternative financing in meeting businesses’ working capital needs.