$29.62 M fund launched by Malaysia to support SMEs and mid-tier companies in strategic NIMP sectors
As part of the New Industrial Master Plan 2030 (NIMP 2030), the Securities Commission Malaysia (SC) and the Ministry of Investment, Trade, and Industry (MITI) jointly launched the Strategic Co-Investment Fund (CoSIF) on Tuesday.
According to a joint statement from the two, CoSIF will be disbursed through equity crowdfunding (ECF) and peer-to-peer financing (P2P) platforms with an initial allocation of MYR 131.5 million ($29.62 million) to support the expansion of regional SMEs and mid-tier companies (MTCs) in strategic sectors.
The statement claims that CoSIF is a public-private co-investment program in which the government and private investors make predetermined ratios of investments in companies that operate in the 21 sectors listed in NIMP 2030 as well as four emerging growth sectors: advanced materials, electric vehicles, renewable energy, and carbon capture, utilization, and storage (CCUS).
The SC is going to administer CoSIF.
CoSIF is a blended financing model that aims to access unorthodox funding sources. CoSIF can raise a substantial amount of money to support high-impact initiatives in key sectors like advanced manufacturing, digitization, and decarbonization by accessing the capital market.
It is anticipated that this initiative will promote sustainable economic growth, boost competitiveness, and stimulate innovation.
This emphasis on SMEs and mid-tier businesses as funding recipients is essential to achieving NIMP2030’s goals because it reflects the initiative’s emphasis on inclusivity.
“The CoSIF fund exemplifies our commitment to financing SME and mid-tier companies, to support their growth, innovation and long-term resilience,
“This initiative not only diversifies our financing options but also reflects our commitment to inclusivity by facilitating broad-based growth in our industry,”
We are proud to unveil this innovative fund as an integral part of realizing NIMP 2030’s missions, which places us on a better footing to continue positioning Malaysia as a premier manufacturing and services hub in the region.” said Tengku Zafrul Aziz, Minister of MITI.
The implementation of the NIMP CoSIF through ECF and P2P platforms, according to SC Chairman Mohammad Faiz, is in line with the SC’s mission to democratize access to capital market financing for MSMEs and MTCs, a historically underserved market.
“This structured public-private co-investment mechanism aims to support the fundraising journey of these businesses, fostering a capital market that is more inclusive,” he added.
Notably, in May 2024, the SC launched its 5-Year Roadmap (2024–2028) for Catalyzing MSME and MTC Access to the Capital Market.
The roadmap’s goal is to use the capital market to close the funding gap for MSMEs and MTCs. The SC also published a Simplified Pitching Guide and a Capital Market Starter Pack as part of the roadmap.
In order to assist businesses in communicating their business proposition and growth story to potential investors, the guide was created in partnership with 1,337 ventures.
Before the end of March 2025, the NIMP CoSIF’s ECF and P2P operator list will be made public.
