The rise in alternative financing to fund the needs of a new economy

Business financing in Malaysia has evolved over the past decade. Among the more significant developments is the increasing prominence of capital market financing of business activity, which correspondingly reduces the concentration on bank financing. More recently, financing demand has also reflected broader shifts in economic activity towards those that are more knowledge-based with higher deployment of technology.

This has spurred new sources of financing to meet changing demand drivers and novel lending approaches and programmes by traditional lenders. While the banking sector continues to be the predominant provider of financing, there has also been a gradual expansion in alternative finance.

Our Investor Conversations Show with Sam Shafie, CEO & Co-Founder, PitchIN & Tunku Danny Mudzaffar, Founder & CEO of microLEAP explored the potentials of equity crowdfunding (ECF) and P2P financing as alternatives to meet the needs of increasingly diverse and innovative businesses. The duo also deep dived into the evolution and growth of these sectors including why startups and businesses are increasingly drawn to these financing options.

Additionally, the duo shared their thoughts on:

The evolution of funding in Malaysia
Why has ECF taken off better in Malaysia compared to the rest of the region and what makes it an appealing option to startups and businesses
The P2P financing landscape in Malaysia – its growth to date, other emerging areas of growth and market share
Regulations and compliance within the P2P financing and ECF space
The safety measures put in place by the Securities Commission of Malaysia to protect investors and borrowers
What the future holds for the P2P financing and ECF space