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New MyCIF allocation to create greater awareness of P2P financing - Funding societies
KUALA LUMPUR, Oct 13 -- The government's additional allocation of RM50 million to the Securities Commission's My Co-Investment Fund (MyCIF) in the 2020 Budget is expected to help drive greater awareness of peer-to-peer (P2P) financing as a viable and attractive digital financing option for Malaysian small and medium enterprises (SMEs), said Funding Societies.
The P2P financing platform operator, which provides financing solutions to SMEs, said the allocation would also be able to directly support SMEs in a sustainable manner.
“On the back of the RM430 million that was collectively raised by alternative financing platforms, including P2P financing, since its introduction in 2016, the newly announced measures clearly reflect the government’s trust in the P2P financing industry’s potential to help bridge the SME financing gap, by leveraging on technologies to reach out and serve both unserved and underserved local SMEs,” it said in a statement today.
Additionally, Funding Societies said, the customised packaged investment incentive as well as the extension in tax incentives for venture capital and angel investors until 2023, among others, would serve to attract more investments into alternative financing platforms and further support the SMEs.
It also said the government’s four core thrusts anchoring the 2020 Budget, as well as its priority in driving economic growth in the new economy and digital era, was well-aligned with the nation’s ambition towards realising Industry 4.0.
“We are positive that all these will, in turn, contribute towards not just a more vibrant, but also a more digitalised, SME landscape in Malaysia for years to come,” it added.
-- BERNAMA
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