P2P financing grows 452% to RM180 mil in 2018

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KUALA LUMPUR (March 14): Peer-to-peer (P2P) financing in Malaysia grew 452% to RM180.05 million in 2018, from RM32.60 million in 2017.

In its 2018 annual report, the Securities Commission Malaysia said a total of 1,901 successful campaigns were organised by 602 issuers in 2018 compared with 604 campaigns and 79 issuers in 2017.

“About 91 per cent of campaigns successfully raised up to RM200,000,” it said.

The majority or 57% of investors were below 35 years, followed by 35 to 45 years (30%), and 46 to above 55 years (13%).

Additionally, 93% of investors had invested across multiple campaigns.

The SC reported 87% of investors came from the retail segment and locals made up 99% of the investor base.

However, equity crowdfunding (ECF) declined to RM15.06 million in 2018, from RM24.14 million in the previous year.

Overall, 47% of campaigns raised RM500,000 or below, followed by RM500,000-RM1.5 million (29%) and RM1.5 million — RM3 million (24%).

Retail investors were the majority at 54%, followed by sophisticated (27%), angel (18%) and others (1%).

Local investors accounted for 94% of investors.

Meanwhile, the SC also reported 805 new licensees were issued Capital Markets Services Representative’s Licence (CMSRL) in 2018 to undertake various regulated activities.

“Seven new licences were issued to companies, with five issued for fund management and two to companies for financial planning activities.

“As at Dec 31, there were 242 Capital Markets Services License holders carrying out various regulated activities,” it added. — Bernama