20/10/2025
๐๐ ๐๐ฌ๐ฌ๐ฎ๐๐ฌ ๐๐ฎ๐ข๐๐๐ฅ๐ข๐ง๐๐ฌ ๐๐จ๐ซ ๐๐๐ฅ๐๐ฒ๐ฌ๐ข๐โ๐ฌ ๐
๐ข๐ซ๐ฌ๐ญ ๐๐จ๐๐ข๐๐ฅ ๐๐ฑ๐๐ก๐๐ง๐ ๐
On 19 September 2025, the Securities Commission Malaysia (SC) issued the Guidelines on Social Exchange Platforms, a first-of-its-kind regulatory framework that enables non-profit organisations (NPOs) to raise funds for approved social impact projects through a regulated digital platform.
This marks a significant shift in the role of capital markets, now extending beyond traditional profit-driven ventures to serve the third sector while embedding transparency, accountability, and public trust into the process.
Under the Guidelines, platform operators must meet minimum financial requirements, appoint qualified leadership, and implement robust risk and compliance systems. They are responsible for vetting participating NPOs and enforcing strict disclosure obligations.
NPOs, in turn, must be locally incorporated, approved under the Income Tax Act, and demonstrate an operational track record. They are limited to using 20 percent of funds for overheads and must maintain segregated trust accounts. Mandatory quarterly and annual reporting, along with independently verified social impact disclosures, forms a cornerstone of the new framework.
The SC will retain regulatory oversight under the Capital Markets and Services Act 2007, with the power to take enforcement actions where necessary. All fundraising representations must clarify that SCโs registration does not equate to endorsement.
This is a landmark moment for Malaysiaโs capital market. The social exchange model introduces a new pathway for responsible fundraising and opens the door for mission-driven initiatives to access regulated funding while meeting high standards of governance.
