Is raising funds via an ECF Platform legal in Malaysia?

Yes. The Securities Commission of Malaysia (“SC”) has authorized this method of fund-raising since 2015 by releasing the Guidelines on Recognized Markets under Section 34 of the Capital Markets and Services Act 2007 (“CMSA”) (as replaced by Guidelines on Recognized Markets issued by the SC pursuant to Section 377 of the CMSA), making Malaysia the first country in Southeast Asia to legislate ECF. However, only ECF platforms that have been approved and licensed by the SC are permitted to host issuers and facilitate ECF campaigns.

Last Update: 22 July 2024