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). With an initial allocation of RM131.5 million, CoSIF is designed to support the expansion of local Small and Medium Enterprises (SMEs) and mid-tier companies (MTCs) in strategic industries. The fund will be channelled through Equity Crowdfunding (ECF) and Peer-to-Peer Financing (P2P) platforms.

Launched by Minister of International Trade and Investment Datuk Seri Tengku Zafrul Abdul Aziz and SC Chairman, Dato’ Mohammad Faiz Azmi, the fund will see the government investing alongside private investors at pre-determined ratios. It will be directed towards businesses in the 21 sectors identified under NIMP 2030, in addition to four emerging growth sectors: Carbon Capture, Utilisation, and Storage (CCUS); Electric Vehicles (EV); Renewable Energy (RE); and Advanced Materials. The SC will oversee the administration of the fund.

To maximise impact, CoSIF has been structured as a blended financing model that draws from alternative funding sources. By leveraging the capital market, the fund aims to channel significant resources into high-impact projects in key areas such as advanced manufacturing, digitalisation, and decarbonisation. The initiative is expected to promote innovation, boost competitiveness, and contribute to sustainable economic development.

Highlighting the government’s commitment to fostering SME and MTC growth, Tengku Zafrul noted that CoSIF is a crucial step towards building a more inclusive and resilient industrial sector.

“The CoSIF fund exemplifies our commitment to financing SME and mid-tier companies, to support their growth, innovation, and long-term resilience. We are proud to unveil this innovative fund as an integral part of realising 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.”

SC Chairman, Dato’ Mohammad Faiz, stressed that the initiative is in line with efforts to make capital market financing more accessible to smaller businesses, particularly those that have historically struggled to secure funding.

“The deployment of the NIMP CoSIF through ECF and P2P platforms aligns with the SC’s effort to democratise capital market financing access for 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.”

The CoSIF initiative aligns with the SC’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024 – 2028), launched in May 2024, which aims to bridge the financing gap for MSMEs and MTCs through capital market solutions. The list of ECF and P2P operators participating in the fund is expected to be announced by the end of March 2025.

Further details on NIMP CoSIF and the SC’s MSME and MTC Roadmap can be found on the SC’s official webpage.

(Source: SC)

• TAGS:
• CoSIF
• Ministry of Investment Trade Industry
• MITI
• New Industrial Master Plan 2030
• NIMP 2030
• SC
• Securities Commission Malaysia
• Small And Medium Enterprises
• SMEs
• Strategic Co-Investment Fund