Malaysia Launches RM131.5 Million CoSIF to Boost SME and MTC Growth

The Ministry of Investment, Trade, and Industry (MITI), in partnership with the Securities Commission Malaysia (SC), has launched the Strategic Co-Investment Fund (CoSIF) as part of the New Industrial Master Plan 2030 (NIMP 2030). Announced on Tuesday, the fund starts with an initial allocation of RM131.5 million (around $29.62 million) to help small and medium enterprises (SMEs) and mid-tier companies (MTCs) grow in vital industries.

CoSIF will channel investments through Equity Crowdfunding (ECF) and Peer-to-Peer Financing (P2P) platforms, providing businesses with alternative funding options to drive growth.

The Capital Market Special Investment Fund (CoSIF) was officially launched by Investment, Trade, and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz, alongside Securities Commission (SC) Chairman Dato’ Mohammad Faiz Azmi. This public-private co-investment initiative will see the government partnering with private investors at fixed ratios to support businesses in key sectors. The fund, managed by the SC, aims to strengthen Malaysia’s position as a leading hub for manufacturing and services.

CoSIF will direct investments toward businesses in the 21 priority sectors identified in the New Industrial Master Plan 2030 (NIMP 2030). Additionally, it will focus on four key emerging growth areas: Renewable Energy (RE), Advanced Materials, Carbon Capture, Utilisation and Storage (CCUS), and Electric Vehicles (EV). By tapping into the capital market, the fund aims to mobilize resources to accelerate digital transformation, innovation, and decarbonization across these industries.

Designed as a blended financing model, CoSIF will tap into alternative funding sources, including peer-to-peer (P2P) and equity crowdfunding (ECF) financing platforms. With an initial allocation of RM131.5 million, it aims to improve access to capital for small and medium enterprises (SMEs) and mid-tier companies (MTCs). These segments have historically faced funding challenges. The SC will announce a list of approved ECF and P2P operators for the fund by March 2025.

Minister Zafrul highlighted that the initiative supports the NIMP 2030’s goal of inclusivity by ensuring these businesses play a key role in economic progress.

Meanwhile, SC Chairman Mohammad Faiz spoke about the CoSIF’s role in making capital market financing more accessible. He noted that the fund’s structured co-investment model will help bridge the financing gap for SMEs and MTCs, complementing the SC’s 5-Year Roadmap (2024–2028) introduced in May 2024 to enhance capital market access for these enterprises.

As part of the initiative, the Securities Commission (SC) will introduce the Capital Market Starter Pack and a Simplified Pitching Guide, developed in partnership with 1337 Ventures. These resources aim to assist businesses in effectively presenting their growth potential and value propositions to investors, enhancing their chances of securing funding.

Additionally, the SC will announce the list of approved Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) financing operators for CoSIF by March 2025. This step aligns with the broader efforts under the 5-Year Roadmap (2024–2028) to improve capital market access for small and mid-tier enterprises and ensure they receive adequate support for expansion and innovation.