Equity crowdfunding in Malaysia

Malaysia has recently joined a growing number of jurisdictions that have introduced regulation to promote equity crowdfunding. Equity crowdfunding takes advantage of technological advances, specifically the internet, to provide an additional source of funding for small to medium start-up companies. Use of the internet as a tool seeks to introduce a wider source of investors into the funding process, with the hope that this will encourage economic growth and innovation. While promoting these benefits, the Malaysian regime acknowledges a number of risks associated with the process, particularly those faced by retail investors with little knowledge of investment. This article explores the Malaysian regime in the context of recent developments in equity crowdfunding. It is too soon to tell whether the objectives of the new regime have been met, but the article provides early examples of the operation of equity crowdfunding that will contribute to analysis of the benefits and risks associated with the process.