April 11, 2024

Malaysia unveils incentives to boost companies in agriculture sectors

The Malaysia Co-Investment Fund (MyCIF) has introduced two new incentives aimed at bolstering micro, small, and medium enterprises (MSMEs) operating within the upstream agriculture and bioeconomy sectors to strengthen national food security, The Edge Malaysia reported.

Announced during the MyCIF Open Day, the incentives comprise a 0% financing rate for eligible peer-to-peer (P2P) financing campaigns and the option to forgo dividend income from investments in eligible equity crowdfunding (ECF) campaigns.

Established under Budget 2019 and administered by the Securities Commission Malaysia (SC), MyCIF underscores its commitment to driving growth and innovation in critical segments of the value chain, aligning with broader efforts to enhance national food security.

Datuk Seri Dr Awang Adek Hussin, chairman of the SC, emphasised Malaysia's leadership in adopting a co-investment model for alternative finance platforms. Since its inception in 2018, MyCIF has significantly contributed to the growth of the ECF and P2P segment, providing funding to over 15,000 MSMEs.

Addressing the gathering, Finance Minister II Datuk Seri Amir Hamzah Azizan reaffirmed the government's dedication to nurturing underserved and strategic sectors, focusing on the importance of financing upstream businesses in fostering innovation and ensuring supply chain stability for the agricultural and bioeconomy sectors.

As MyCIF marks its fifth anniversary, the fund remains pivotal in the alternative financing sector, having co-invested MYR 930 million (US$195 million) in ECF and P2P campaigns, benefitting 6,328 MSMEs. Its strategic allocations will expand to support national priorities, focusing on sectors such as the environment, community, food security, education, and healthcare.

-      The Edge Malaysia