KUALA LUMPUR – Financial technology (fintech) will be a crucial enabler in rebuilding the Malaysian economy as the country recovers from the pandemic, Securities Commission Malaysia (SC) chairman Datuk Syed Zaid Albar said.
Speaking at the SC’s eighth annual fintech conference SCxSC, he emphasised the importance of technology and fintech in shaping the capital market ecosystem.
“Technology is in fact one of the main thrusts of the Capital Market Masterplan 3, where we envision greater use of digital capability to facilitate fundraising for companies of all sizes while encouraging market innovation and financial inclusion,” he said in his opening remarks at the virtual event today.
Syed Zaid said despite an initial decline in fundraising activities in the first quarter of 2020, the equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms recovered to help micro and small and medium enterprises (MSMEs) raise more than RM1.3 billion since April last year.
The amounts raised through ECF and P2P in the first half of 2021 rose 151% and 220%, respectively, compared with the same period in 2020.
There are currently 21 ECF and P2P platforms registered with the SC, which have collectively raised more than RM2.2 billion for close to 4,000 MSMEs since their inception.
Syed Zaid also highlighted that investor participation in alternative and digital platforms continues to be robust despite market uncertainties.
“The digital asset exchanges in Malaysia continue to thrive this year, with over 300,000 new accounts created so far.
“Since its introduction in 2019, the volume of digital assets traded has surpassed a billion, with a value in excess RM16 billion as at September 2021,” he said.
He said new digital investment management (DIM) entrants have also contributed to the growth of assets under management in the capital market.
As at July 2021, the eight licensed DIM operators have seen a 90% jump in new account openings compared with 2020 with nearly 75% of account holders under the age of 35.
Meanwhile, continuous demand for online brokerage services resulted in a 35% increase in new account openings during the same period.
The SCxSC fintech conference is the SC’s flagship fintech event to drive the conversations on fintech and digitisation in the capital market. For the first time, the 3-day event will be held on dual-track streams, allowing the conference to cater to more topics and broaden the issues for discussion. The conference also introduces a ‘Village of Solutions’ that will showcase a suite of solutions from SCxSC partners and exhibitors.
Read more: Understanding the Capital Market