22/07/2025

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TUESDAY | JULY 22, 2025

MBI set to catalyse systemic digital transformation

Co-investments by MyCIF since inception surpass RM1b PETALING JAYA: The Malaysia Co-Investment Fund (MyCIF) has surpassed RM1 billion in total co-investments since its inception, marking a significant milestone in supporting the growth of micro, small, and medium enterprises in the country. MyCIF, set up by the Ministry of Finance under Budget 2019, has been a pivotal force in the financing landscape, utilising equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms to channel funds into MSMEs. Since its inception, more than 9,500 MSMEs have benefited from MyCIF’s co investments. In its annual performance report released yesterday, MyCIF said total co-investments reached RM1.19 billion as at end-2024, with RM264 million invested that year alone. MyCIF has attracted 4.1 times in private sector funding for every ringgit invested, demonstrating a strong crowding-in effect. This saw a 21.4% increase in total private investment. The RM1.19 billion total co-investments by MyCIF represent 4.6 times of RM260 million total funds disbursed from the government to date into the programme, demonstrating efficient use of public funds. In addition to the General Scheme 1:4 co investment, MyCIF continues to bolster strategic and underserved segments of the economy through targeted schemes. These include Food Security and Environmental & Social Enterprise Schemes with a preferential 1:2 co-investment ratio. Co-investments in these segments rose to RM7 million in 2024 from RM3.4 million in 2023, reflecting MyCIF’s strengthened com mitment to targeted investment areas. Under Budget 2025, MyCIF has earmarked up to RM40 million for promoting innovative Islamic risk-sharing financing through ECF and P2P platforms. This allocation comple ments existing MyCIF schemes and aims to encourage greater adoption of Islamic finan cing structures by offering various incentives. They include MyCIF’s investing on a first loss basis in ECF and P2P campaigns based on Islamic risk-sharing models, and for P2P campaigns, MyCIF will additionally invest at 0% financing rate. In July 2024, MyCIF introduced the Environmental and Social Impact Scheme to support impact-driven businesses in the environment, community, food security, edu cation and healthcare sectors. The scheme also extends to MSMEs financing waqf assets development projects within these focus areas. To enhance awareness and access to financing, MyCIF hosted its inaugural nation wide roadshow in Penang in February 2025, themed “Empowering Financing, Advancing Growth”. The event, supported by the Northern Corridor Implementation Authority, aimed to raise MyCIF’s profile and benefits among MSMEs in the northern states of Malaysia. MyCIF will next hold a roadshow in Kota Kinabalu, Sabah, on July 31 to raise awareness of alternative funding avenues and foster connectivity between the capital market and entrepreneurs in Sabah, thereby further supporting MSME growth.

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

o Malaysia Blockchain Infrastructure lays foundation for trusted, transparent, secure and innovative ecosystem

KUALA LUMPUR: Malaysia is laying the groundwork to establish itself as a regional leader in digital trust architecture with the launch of Malaysia Blockchain Infra structure (MBI). This national initiative establishes the foundation for a future where public services are tamper-proof, halal products are traceable from farm to fork and businesses operate with full transparency and cost efficiency on secure digital platforms. Minister of Science, Technology, and Innovation Chang Lih Kang said MBI signals Malaysia’s commitment to anchor its future economy on interoperability, data integrity and innovation, thereby creating a trusted, technology-driven ecosystem across the public and private sectors. He emphasised that MBI is not merely a technological milestone but a catalyst for systemic digital transformation. “Today’s event is not just the launch of a new technology, but the dawn of a new era in the nation’s digital economic development,” Chang said at the official launch of MBI during the opening of Malaysia Blockchain Week 2025 here yesterday. “Let us move forward, not as isolated actors, but as co-creators of a brighter, bolder digital Malaysia.” He said the initiative is designed to accelerate blockchain adoption by building a trusted and transparent infrastructure supported jointly by government and industry. “With the launch of MBI, we hope to fast-track blockchain adoption in Malaysia, enabling broader usage built on trust and transparency,” he added. MBI, developed by Mimos Bhd in collaboration with Zetrix and Masverse, addresses persistent challenges in block chain deployment, including fragmen tation, high transaction costs and a lack of cross-platform compatibility. “This trusted and inclusive national digital backbone will empower govern ment, businesses and the public, streng thening Malaysia’s digital economy for the future,” Chang said. He explained that MBI functions similarly to a financial clearinghouse, such as Mastercard or Visa, by enabling seamless interoperability across different blockchain systems. “It acts like a clearinghouse, allowing smooth transitions between block chain technologies. It simplifies transactions for everyone,” he noted. MBI is grounded in the National Blockchain Roadmap 2021–2025, which outlines Malaysia’s ambitions to lead the region in blockchain adoption across various sectors, including public administration, finance, halal certification and trade. “We see blockchain enhancing trans parency in government, reducing costs in finance, and strengthening halal trace ability and supply chain logistics,” said Chang. “This is about embedding trust and efficiency at every level.”

Chang (front, centre) being briefed on an exhibit following the launch of Malaysia Blockchain Infrastructure in conjunction with the opening of Malaysia Blockchain Week 2025 at the World Trade Centre Kuala Lumpur yesterday. – BERNAMAPIC

To date, the Ministry of Science, Technology and Innovation has achieved 60% of the objectives outlined in the road map, with additional milestones expected by the end of the year. “We’ve reached 60%, and we aim to go even further by year-end,” Chang affirmed. The minister outlined a vision of a fully digital public infrastructure powered by blockchain, encompassing secure procure ment, automated halal certification and streamlined financial services. “Halal products verified from farm to fork, leak-proof procurement – all powered by MBI. This is not a distant vision; it is well within our grasp,” he said. While large enterprises are expected to benefit, Chang highlighted that startups, SMEs and underserved communities will also gain from reduced digital entry costs and greater access to secure data eco systems. He said MBI would serve as a trusted platform for early-stage companies and blockchain startups to engage with verified partners. “This platform enables startups to find trusted blockchain partners – whether service providers or platforms. It also serves as a form of government endorsement.” Chang underscored the importance of collaboration among government, industry and academia in unlocking MBI’s full potential. “Innovation isn’t confined to insti

tutions. It flows from startups, entre preneurs, researchers, and public services. This embodies the Malaysia Malaysia vision, where innovation is guided by compassion, progress is rooted in trust and technology serves all levels of society,” he said. Chang disclosed that a new national roadmap is in development, focusing on explainable artificial intelligence and blockchain through to 2030. The initiative will primarily involve local experts, with opportunities for international collaboration. “We’re working with the Ministry of Digital and relying largely on local experts. However, we remain open to input from foreign specialists,” he said. As other Asean countries move towards integrating blockchain in trade and governance, Malaysia aims to leap forward with a cohesive, government-backed frame-work, rather than relying on scattered pilot programmes. “With MBI, Malaysia is positioning itself at the forefront of digital trust infrastructure – one that supports not only innovation but also real-world impact across industries and communities,” said Chang. The two-day Malaysia Blockchain Week 2025, organised by Lydian Labs and supported by ARC, features expert panels, technology showcases, and cross-border collaborations designed to scale block chain innovation across Southeast Asia and beyond.