A NEW landmark regulated Social Exchange platform is seen to be a pioneering move to modernise charitable fundraising, combat governance anxieties, and funnel private capital into social impact, sustainability, and community initiatives.
Spearheaded by the Securities Commission Malaysia (SC), the newly unveiled ecosystem is designed to introduce transparency and structured oversight for non-profit organisations, donors, and social enterprises at a time when the public is demanding stricter financial governance in charitable operations.
The initiative constitutes a core sustainability pillar within the country’s Capital Market Masterplan 2026–2030, creating regulated, market-based fundraising channels for eligible community and climate-driven projects.
Speaking at the official launch in Kuala Lumpur today, Securities Commission chairman Datuk Mohammad Faiz Azmi described the platform as a transformative step in Malaysia’s evolving social finance landscape.
“Today marks a significant milestone for charitable and social impact financing in Malaysia,” he said.
Faiz explained that the initiative reflected the broader commitment of the MADANI Government to ensuring inclusive economic growth while preventing vulnerable communities from being left behind.
Faiz revealed that the original concept for the platform was introduced by former SC executive chairman Datuk Seri Dr. Awang Adek Hussin.
He noted that the initiative acknowledged the reality that government funding alone would not be sufficient to address every social and community challenge facing the country.
“By utilising trusted and credible platforms, we can unlock significant opportunities for collaboration and impact. This includes realising the full potential of Islamic social finance instruments such as zakat and waqf,” Faiz said.
He added that Islamic social finance, corporate social responsibility programmes, and philanthropic funding represented a major untapped pool of capital capable of delivering scalable social outcomes.
He cited global estimates showing that philanthropic and charitable contributions worldwide total approximately US$1.3 trillion annually, with individual contributions alone accounting for nearly one per cent of global gross domestic product each year.
The Securities Commission noted that the launch comes amid heightened scrutiny over governance and transparency in charitable fundraising activities across the sector.
“An appropriate solution would be to consolidate available resources through a regulated structure that enhances transparency, strengthens credibility, reinforces accountability, and builds public trust,” Faiz said.
To support the initiative, the commission introduced its Guidelines on Social Exchange Platforms in September last year, outlining governance, disclosure, and reporting requirements for platform operators and participating non-profit organisations.
Under the framework, participating organisations must satisfy strict eligibility and compliance standards before being permitted to raise funds through the exchange.
The initial phase of the Social Exchange will focus strictly on charitable fundraising involving donations to eligible non-profit organisations and social projects.
The Securities Commission has appointed LC Wakaful Digital Sdn Bhd as the first official platform operator. Its digital platform, Impakrintas, commenced operations earlier this year with six non-profit organisations and social impact projects already listed.
Chief executive officer of LC Wakaful Digital, Firdaus Mohamed, described the initiative as a foundational infrastructure project for the future of Malaysia’s social economy.
“This is not merely the launch of another fundraising platform. It represents the establishment of trusted infrastructure for the social economy — where donations and charitable contributions can support social impact with greater transparency, accountability, governance, and measurable impact,” he said.
Firdaus explained that traditional social fundraising activities had often operated in fragmented environments with inconsistent standards of visibility and oversight.
“Historically, social fundraising has operated in fragmented environments with varying standards of visibility and oversight. The Social Exchange framework creates a more structured pathway for donors, institutions, and NPOs to participate with greater confidence,” he added.
Faiz said future phases of the initiative would progressively expand participation to include wider social impact projects, community-based financing models, and climate-related initiatives.
“This phased approach is intended to ensure market readiness and safeguards long-term sustainability,” he said.
The initiative has secured financial backing from the Ministry of Finance and the Inland Revenue Board through a RM2 million allocation under the 2026 Federal Budget, alongside tax parity incentives for donations made through the platform.
According to the SC, these measures are expected to improve accessibility and participation while strengthening Malaysia’s long-term social impact ecosystem.
“We would like to record our thanks to the Government, particularly MOF and LHDN, for its support and incentives in advancing this initiative,” Faiz added.
The SC chairman urged stakeholders across the financial, corporate, and social sectors to work together in aligning market-based capital with Malaysia’s broader social aspirations.
“Together, we can build a capital market that does not only generate wealth, but also uplifts lives,” he said. – May 25, 2026