Malaysia first in ASEAN with crowdfunding legal framework

Kuala Lumpur City Centre

Malaysia became a pioneer among ASEAN countries to have laws governing crowdfunding, as the nation’s Parliament passed a Bill to legalise the alternative funding practice.

The Parliament, had on Wednesday, passed the amendments in the Capital Markets and Services Bill 2015 to regulate crowdfunding activities.

The Bill, which was passed after two rounds of debates by Senators will protect the interest of crowdfunding investors and companies, local media The Star reported.

Any fraud committed in crowdfunding activities would fall under Section 179 of the Capital Markets and Services Act, which carries a jail term of not more than 10 years and a minimum fine of MYR1 million.

Deputy Finance Minister Ahmad Maslan said six local companies registered with the Securities Commission, have been approved to carry out equity crowdfunding activities.

Related story: Malaysia’s Securities Commission allows 6 players to launch equity crowdfunding services

“We encourage the use of equity crowdfunding and hope that more people will use it. The purpose of today’s passing of the Bill is to regulate and protect the interest of investors and companies,” Ahmad Maslan said at the Parliament lobby.

Under the Bill, private companies with a paid-up capital of not more than MYR 5 million and with a strong business plan can now fund their ventures through crowdfunding.

The amount of capital collected through crowdfunding is limited to MYR 5 million, while small and medium enterprises can crowdfund an amount of up to MYR 3 million in a year.

For investors, the maximum investment amount is limited to MYR 5,000 for each company and MYR50,000 a year for the total amount of crowdfunding investment.

Also read:

Asian Crowdfunder launches in Malaysia, looking to enter Singapore, Indonesia, Thailand

Malaysia to promote private financing for R&D, commercialisation, innovation: 11th Malaysia Plan

SGX gives S$1.5m grant to develop equity crowdfunding platform CapBridge

Tripartite alliance of CoAssets, FundedByMe & New Union advances Singapore’s crowdfunding space

Crowdfunding a game changer for entrepreneurs : Prakash Somosundram

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.