SMEs can raise raise capital via crowdfunding platform from September

PUTRAJAYA: Beginning September, small and medium enterprises (SMEs), can raise capital using the crowdfunding platform.

Individuals can invest from RM500 to RM5,000, said the Secretariat for the Advancement of Malaysian Entrepreneurs (Same) chief executive officer, Neil Foo. He said a company could raise up to RM3 million within a 12-month period and thereafter, up to RM2 million.

“Among the sectors that can invested in, includes, information technology, retail, manufacturing and food and beverages.

“With crowdfunding, the public have an opportunity to invest in a private company,” Foo told a media conference here yesterday. He said the first roadshow on crowdfunding would be held in Johor Baharu this Thursday (Aug 13).

Crowdfunding is a practice to raise money from the public to start up a project or venture usually through the internet. Foo said Same would join forces with Propellar Crowd Plus, a regional VC-backed equity crowdfunding platform, to educate both businesses and the general public on equity crowdfunding.

In July, the Capital Markets and Services Bill 2015 was approved in Parliament, making Malaysia the first Asean country to have equity crowd funding laws.

Former Deputy Finance Minister Datuk Ahmad Maslan when commenting on the bill said six local companies registered with the Securities Commission have been approved to carry out crowdfunding activities.

However, he cautioned those wanting to participate in crowdfunding of the risk of a loss, including the liquidation risk to the company. — Bernama