SC Issues Guidelines To Establish Malaysia’s First Social Exchange

Samuel Chua

23rd September 2025 - 2 min read

The Securities Commission Malaysia (SC) has issued the Guidelines on Social Exchange Platforms, setting the framework for the establishment of Malaysia’s first social exchange. The move is designed to create a transparent fundraising avenue for non-profit organisations (NPOs) to support eligible social impact projects.

Social exchanges are expected to widen the role of Malaysia’s capital market by providing structured fundraising for non-profit organisations and social enterprises, while also strengthening trust in how donations are managed.

SC Chairman Dato’ Mohammad Faiz Azmi said the initiative reflects Malaysia’s broader policy goals. “Aligned with the priorities of the 13th Malaysia Plan, the Social Exchange ensures transparency and accountability in fundraising towards social impact projects. This will strengthen public trust and mobilise more resources towards meaningful social impact,” he said.

Originally, SC had planned for the social exchange to be launched by end-2024, with registration opening early in 2025. That earlier timeline was published in May 2024.

A social exchange is a fundraising platform that functions in a similar way to a stock exchange. However, instead of trading shares, it lists approved social projects from NPOs. Members of the public or institutions can then contribute funds through the platform.

Unlike informal fundraising, a social exchange will require clear rules on disclosure, reporting, and accountability. This ensures donors can see how their money is being used and what outcomes are achieved, creating greater confidence in the process.

Key Requirements For Operators And NPOs

The Guidelines set out rules for both social exchange platform operators and participating NPOs. These include eligibility criteria, disclosure obligations, and mandatory reporting requirements to ensure funds are used appropriately and projects deliver measurable results.

By setting these requirements, the SC aims to instil accountability and strengthen trust, while directing resources towards projects with meaningful impact.

Applications to operate a social exchange are now open as of 19 September 2025. NPOs interested in participating may review the Guidelines to understand the requirements and prepare for compliance.

The Guidelines are already in effect and can be accessed on the SC’s official website.

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Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.