On 17 January 2025, the Securities Commission Malaysia (“
SC”) launched Malaysia’s first Social Exchange Pilot Programme (“
SEPP25”) with five non-governmental organisations (“
NGOs”) presenting social impact projects comprising (a) Malaysian Association for the Blind; (b) Malaysian Relief Agency; (c) Mercy Malaysia; (d) Suriana Welfare Society Malaysia; and (e) WWF-Malaysia.
1
The five NGOs will share relevant data and information with the SC, in addition to providing input on areas identified by the SC as key to the building blocks of the Social Exchange
2 such as social project fundraising requirements to be fulfilled, social impact report and capacity building programmes. Furthermore, the fundraising onboarding process based on parameters to be set by the SC will also demonstrate their ability to report project outcomes accordingly.
SEPP25 aims to provide for a better understanding of the critical components for establishing the Social Exchange that leverages on Malaysia’s capital market infrastructure and acts as an enabler in fulfilling the funding needs of NGOs and social enterprises within a regulated environment – a similar model can be seen existing in India by the initiative taken by the Securities and Exchange Board of India through its two stock exchanges.
SEPP25 is a significant step towards creating Malaysia’s inaugural Social Exchange (expected to be fully operational in 2026) and plays a crucial role in the initial development of the Social Exchange by facilitating the creation of a credible, transparent and trusted platform where donors can monitor the impact of their contributions.
To assist in finalising the requirements for the Social Exchange framework, the SC has established an Advisory Committee supported by an Implementation Committee to provide guidance and advice throughout the phased approach of the initiative.
Our previous article on the salient aspects of the Social Exchange can be accessed
here.
Alert by Siti Ayenaa Binti Mohd Anis (Associate) of the Corporate Practice of Skrine.