Budget 2019: SC supports use of tech such as property crowdfunding platforms in driving economy

PETALING JAYA (Nov 2): The Securities Commission Malaysia (SC) said the Budget 2019 has identified key priorities to support the transition of the Malaysian economy towards a more balanced, sustainable and inclusive growth.

In a press release issued today, it said technology has encouraged product innovation and created new ways and means of doing business in an age of digital disruption.

“Leveraging these advancements, three new initiatives have been announced in Budget 2019 to broaden retail investors’ participation and stimulate more innovative market-based financing options,” the statement read.

Among the initiatives it mentioned include the introduction of property crowdfunding platforms which will be regulated by the SC under a crowdfunding framework.

This platform will provide alternative financing options to first-time homebuyers and give investors exposure to the property sector through smaller investment amounts.

The property crowdfunding platforms is part of a series of Budget 2019 measures to facilitate home ownership.

Other incentives include digital asset exchanges and initial coin offerings (ICOs) as well as a Co-Investment Fund (CIF), with a grant of RM50 million to enable the government to co-invest with private investors in financing the development of new businesses.

“The SC will work with the relevant stakeholders to operationalise these measures. Further details of these measures will be announced in due course,” it said.