The Securities Commission Malaysia (SC) announced Thursday the appointment of LC Wakaful Digital Sdn Bhd (LCWD) as the first Social Exchange Platform operator in Malaysia.
The Social Exchange is a key initiative under the new Capital Market Masterplan 2026-2030 (CMP) designed to broaden access and market participation to social impact financing, SC said in a statement.
The Social Exchange Platform will provide a structured and transparent avenue for non-profit organizations to raise donations for eligible social projects while enabling donors to have greater visibility over fund utilization and the impact of the projects.
This initiative aligns with the whole-of-nation approach of CMP 2026-2030, emphasizing collaboration to sustain national economic resilience.
SC Chairman Mohammad Faiz Azmi said the appointment of the Social Exchange Platform operator marked a key step towards establishing a market based, transparent and well-governed platform for non-profit organizations.
“With the Social Exchange, we are institutionalizing trust in social finance,
“We are providing a structured avenue for non-profit organizations to scale their impact while giving donors the transparency and confidence they need to participate in Malaysia’s sustainable development journey,” he said.
The appointment of the operator marks an important milestone in operationalizing the Social Exchange.
This follows the Prime Minister’s announcement in May 2024 on the introduction of the Social Exchange initiative and the successful implementation of the Social Exchange Pilot Program by the SC in the first half of 2025.
The Guidelines on Social Exchange Platforms (Guidelines) which set out the regulatory requirements1 for operators and non-profit organizations, were released subsequently on 19 September 2025.
Applications for registration as a Social Exchange Platform operator commenced on the same date.
As the operator, LCWD is registered under section 76A of the Capital Markets and Services Act 2007 (CMSA).
It will be responsible for establishing and operating Malaysia’s first Social Exchange Platform, Impakrintas, as well as onboarding eligible non-profit organizations in accordance with the requirements set out in the Guidelines.
With the appointment of LCWD as the Social Exchange Platform operator for the first year of Phase 1, the SC will closely assess market participation, the orderly development and viability of the platform, and the overall market readiness before considering expansion for other operators.
This initial phase, which aims to Go-Live on February 19, 2026 will see the platform facilitate direct cash donations from donors to approved non-profit organizations under subsection 44(6) of the Income Tax Act 1967.
In the subsequent phases, the scope of the Social Exchange will be further expanded for wider participation and broadened to include capital market instruments.
Upon Impakrintas’ Go-Live, as a start, six non-profit organizations are expected to be onboarded onto the platform with listings of wide-ranging social impact projects, including equitable access to healthcare, early intervention programs for youth on sexual and reproductive health education, food security, inclusive livelihoods and environmental sustainability.
Donations made through the Social Exchange will be eligible for equivalent tax treatment under subsection 44(6) and paragraph 13(1) of Schedule 6 of the Income Tax Act 1967, benefiting both non-profit organizations raising funds and donors supporting social impact projects listed on Impakrintas.
ACSR sets out approach for non-compliance to sustainability reporting requirements