CapBay welcomes Budget 2027 as further govt incentives bring P2P financing into the mainstream

CAPBAY welcomes the RM270 mil provision for additional co-investment funds to attract private capital through peer-to-peer financing (P2P) and equity crowdfunding (ECF).

The provision builds on Malaysia’s experience with public-private co-investment.

Established under Budget 2019, the Malaysia Co-Investment Fund (MyCIF) had co-invested RM1.50 bil alongside RM6.21 bil in private investment by the end of 2025, supporting more than 11,500 micro, small and medium enterprises, according to the Securities Commission Malaysia (SC).

The model has since expanded with the introduction of the Strategic Co-Investment Fund (CoSIF), jointly launched by the Ministry of Investment, Trade and Industry and the Securities Commission Malaysia in February 2025.

CoSIF supports SMEs and mid-tier companies in strategic sectors under the New Industrial Master Plan 2030 through ECF and P2P platforms.

“MyCIF has demonstrated how government funding can bring private investors alongside it to support businesses. The subsequent introduction of CoSIF shows how this approach can serve different national development priorities,” said Ang Xing Xian, Co-Founder and Group CEO of CapBay.

“We see growing interest among government agencies in co-investment models, and the additional RM270 mil provides an opportunity to build on that momentum,” he added.

CapBay Group has provided more than RM6.1 bil in financing to over 2,700 SMEs, underscoring the role of alternative financing in meeting businesses’ working capital needs.

Stamp duty relief for P2P financing renewed

CapBay also welcomes the proposed continuation of the RM10 stamp duty treatment for P2P financing agreements from 1 January 2027 to 31 December 2030, which helps keep financing costs manageable for SMEs while providing greater certainty for businesses and platform operators.

“The renewal of this relief is a significant win for the P2P financing industry and the SMEs it serves. Alongside additional co-investment support, it reinforces the Government’s recognition of P2P financing as an increasingly mainstream channel for business funding,” said Ang.

Since the SC introduced its P2P regulatory framework in 2016, SC-registered platforms have become an established channel for business financing.

According to the SC Annual Report 2025, alternative financing avenues raised RM5.7 bil for MSMEs and mid-tier companies in 2025, a year-on-year increase of 39.0%.

P2P financing raised RM2.8 bil in 2025, up from RM2.5 bil in 2024.

Supporting Bumiputera businesses through TERAJU

Budget 2027 also provides up to RM1 bil in financing through TERAJU, as part of its support for Bumiputera contractors and businesses.

As a TERAJU partner under the Islamic Working Capital Project Financing (i-WCPF) programme, CapBay provides eligible Bumiputera businesses with Shariah-compliant working capital and project financing. —Oct 14, 2026

Main image: CapBay

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