P2P Sector in Malaysia
Peer-to-peer (P2P) platforms are becoming increasingly active in the US, UK, China, Australia, and many other countries across the world. China’s P2P market has shown the greatest growth with lending reaching a level of US$66.9 billion.
Although the Malaysian P2P sector has had a late start, it is making rapid strides with a number of new companies planning to launch operations.
Regulatory approval – Suruhanjaya Sekuriti, the Securities Commission of Malaysia, issued guidelines for the registration of P2P lenders in May this year. Among the other requirements that have been stipulated for P2P lenders, it has said that companies operating in this field must have an efficient and transparent risk scoring system so that investors can take an informed lending decision
In early November 2016, the Securities Commission registered the first six P2P lenders after conducting a review of the applicants’ credentials B2B FinPAL, Ethis Kapital, FundedByMe Malaysia, ManagePay Services, Modalku Ventures, and Peoplender expect to launch operations in 2017.
Last year, the Securities Commission had approved six equity crowdfunding (ECF) operators, an update of which will be provided shortly by Malaysia’s equity crowdfunding operators – A report in DealStreetAsia provides details about the background of the country’s ECF operators. Alix Global, one of the six companies approved by the Securities Commission, is a digital marketing agency and WeChat solution provider in Malaysia.
It is being launched in conjunction with FundedByMe, a Swedish crowdfunding platform that has raised a total of over €28 million for 456 companies
Crowdonomic, one of the other ECF operators that was approved, is a Singapore-based company that was launched in 2012. This FinTech firm has established itself as a platform that specialises in arranging capital for startups and SMEs in Asia.
Malaysian P2P sector is likely to expand at a brisk pace – The country has a strong regulatory infrastructure and overseas investors have shown a keen interest in participating in its new P2P companies as is evidenced by the participation of companies from Sweden and Singapore. This will provide Malaysia’s SMEs with an option for raising capital and will lead to quick growth for the country’s P2P platforms.