The Ministry of Investment, Trade and Industry (MITI) and the Securities Commission Malaysia (SC) have jointly launched the Strategic Co-Investment Fund (CoSIF) under the New Industrial Master Plan 2030 (NIMP 2030) on Tuesday.

With an initial allocation of MYR 131.5 million ($29.62 million), CoSIF will be distributed through equity crowdfunding (ECF) and peer-to-peer financing (P2P) platforms to support the growth of local small, and medium enterprises (SMEs) and mid-tier companies (MTCs) in strategic sectors, the duo said in a joint statement.

According to the statement, CoSIF is a public-private co-investment scheme where the government co-invests at pre-determined ratios alongside private investors in businesses operating across the 21 sectors outlined in NIMP 2030, along with four emerging growth sectors i.e., carbon capture, utilization and storage (CCUS), electric vehicles (EV), renewable energy (RE), and advanced materials.

CoSIF will be administered by the SC.

CoSIF is designed as a blended financing model to tap into unconventional sources of funding.

By tapping into the capital market, CoSIF is able to mobilize significant resources to fund high-impact projects in strategic areas such as advanced manufacturing, digitalization and decarbonization.

This initiative is expected to drive innovation, enhance competitiveness, and foster sustainable economic growth.

This focus on SMEs and mid-tier companies as funding recipients reflects the NIMP2030’s focus on inclusivity, and hence, is vital to the realization of NIMP2030 objectives.

“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.

Meanwhile, SC Chairman Mohammad Faiz said the deployment of the NIMP CoSIF through ECF and P2P platforms aligns with the SC’s effort to democratize capital market financing access for micro, small, and medium enterprises (MSMEs) and MTCs, a segment which has been largely underserved.

“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.

It is noted that the SC’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024 – 2028) was launched in May 2024.

The vision of the roadmap is to address the financing gap for MSMEs and MTCs via the capital market.

As part of the Roadmap, the SC also released a Capital Market Starter Pack and a Simplified Pitching Guide.

The guide was developed in collaboration with 1,337 ventures to help businesses communicate their business proposition and growth story to prospective investors.

The list of ECF and P2P operators for the NIMP CoSIF will be announced before the end of March 2025.

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