The Malaysia Co-Investment Fund (MyCIF) has co-invested RM289 million via alternative financing platforms in 2023, consistently spurring growth and enhancing competitiveness of Malaysian micro, small and medium enterprises (MSMEs).
MyCIF is a co-investment fund established by the Ministry of Finance (MoF) under Budget 2019 to co-invest in MSMEs through equity crowd funding (ECF) and peer-topeer (P2P) financing platforms.
Commenting on MyCIF’s Annual Report 2023 released today, the SC Chairman Dato’ Seri Dr. Awang Adek Hussin said, “MyCIF has fuelled close to RM2 billion private investments via its RM289 million investments last year, proving to be instrumental in fostering the growth of the ECF and P2P segments.
“The agriculture sector in particular saw an 86% increase in issuers supported by the MyCIF agriculture scheme. Furthermore, MyCIF was able to reach a higher proportion of MSMEs outside Klang Valley to 49% from 40% the previous year. This is a testament to MyCIF supporting inclusivity among MSMEs,” he added.
Since inception, MyCIF received a total allocation of RM250 million from the Government, and successfully co-invested RM930 million in over 6,000 MSMEs, achieving a 3.7 times multiplier effect. This drew in RM3.82 billion in private investments, bringing the total funds raised with myCIF’s support to RM4.75 billion.
Additionally, MyCIF has generated a net positive return on capital amounting to RM20.7 million or 8.2% of the total allocation from the MoF.
With an additional RM100 million allocated in Budget 2024, MyCIF will continue to support initiatives in focus areas namely, agriculture, healthcare, education, environment, community and Waqf asset development through State Islamic Religious Councils in tandem with the food security and sustainability agenda.
At MyCIF’s recent Open Day last month, graced by Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan, MyCIF’s 5-year positive impact on MSMEs was showcased. The minister emphasised the need to elevate MyCIF’s profile among MSMEs and investors at national level.
During the event, two new incentives were announced for MSMEs falling within the upstream segments of the agriculture and bio-economy sector, effective until end of 2025.
These include:
- Investments at 0% financing rate in eligible P2P campaigns; and
- Foregoing dividend income from investments in eligible ECF campaigns.
In a recent announcement at the Global Forum of Islamic Economics and Finance (GFIEF), Prime Minister Dato’ Seri Anwar Ibrahim extended these incentives to include MSMEs financing Waqf asset development projects falling within the same upstream segment of agriculture, recognising Waqf’s role in advancing the national food security agenda.
Building on the success of MyCIF, other co-investment schemes have been identified as a pivotal component of the SC’s 5-Year MSME Roadmap to enhance MSME and midtier companies (MTC) access to the capital market.
The MyCIF Annual Report and other details are available at https://www.sc.com.my/mycif.
