The Securities Commission Malaysia (SC) has announced the selection of six participants for the inaugural cohort of its Regulatory Sandbox.
The Regulatory Sandbox, launched at SCxSC Fintech Summit last year to foster capital market innovation, allows corporations to experiment with new and innovative products and services that contribute to the vibrancy and inclusiveness of the capital market.
As one of the SC’s innovation toolkit, the sandbox allows the SC to work closely with the industry, using real world testing to enhance policies and regulatory frameworks and push the boundaries of market progress.
Applications, which opened from 15 April to 31 May 2025, drew a strong response from a diverse range of market participants.
Following a multi-stage evaluation process, the SC has selected the following six participants across three core themes:
1. Facilitating alternative real estate investments: Wahed X Sdn Bhd (Wahed) and
Urban NX Sdn Bhd (Urby)
- Fostering market vibrancy through secondary markets: Kapital DX Sdn Bhd (KLDX) and Pitch Platforms Sdn Bhd (PSTX 2.0)
- Spurring innovation in alternative financing: Virtual Economy Technology Sdn Bhd (V Systems) and PeerHive (M) Sdn Bhd (PeerHive)
The inaugural cohort will pioneer advancements across key areas. Apart from this, several participants are also leveraging advanced data analytics and blockchain to enhance due diligence and introduce new operating models.
The successful participants will be provided with a testing period of approximately 12 months to deploy and assess their proposed solutions in accordance with the defined testing parameters and requirements. Testing will commence in two batches, with participants starting based on their readiness - either in January 2026 or July 2026.
The SC Chairman Dato’ Mohammad Faiz Azmi said the sandbox serves as a launchpad for responsible innovation, enabling solutions that deliver meaningful value to the capital market.
“This initiative reflects our commitment to creating an environment where innovation can thrive without compromising investor protection. By encouraging experimentation within a controlled framework, the SC aims to nurture forward-thinking ideas that can strengthen market efficiency,” he said.
In addition to regulatory sandbox, corporations with innovative business models are encouraged to engage with the SC through its Alliance of FinTech Community (aFINity), by submitting their business plan or proposal via afinity@seccom.com.my.
