This article first appeared in The Edge Malaysia Weekly on July 1, 2026 – July 7, 2026
MALAYSIA’S Social Exchange platform has been pitched as a more transparent and accountable alternative to conventional charity fundraising, but its success may ultimately depend on whether donors can see a meaningful difference beyond the regulatory labels.
Impakrintas, operated by LC Wakaful Digital Sdn Bhd, is the first platform launched under the Securities Commission Malaysia’s (SC) new Social Exchange framework, which promises greater visibility over how donations are spent and the outcomes they achieve.
Yet questions remain over whether a model that relies heavily on disclosures can meaningfully reduce the risk of misuse of funds, or simply add another layer of compliance to a sector built largely on trust.
“Impakrintas was established to strengthen trust in the social sector by creating a more transparent, governed and reportable fundraising environment, where fundraising commitments, fund utilisation and social impact outcomes remain visible long after the donation has been made,” LC Wakaful Digital CEO Firdaus Mohamed tells The Edge.
Launched in May as a key initiative under the Capital Market Masterplan 2026-2030, the Social Exchange aims to provide a regulated fundraising channel for non-profit organisations (NPOs), while giving donors greater visibility into fund utilisation and project outcomes.
The government has allocated RM2 million under Budget 2026 to help eligible NPOs defray onboarding and fundraising costs, while donations made through the platform qualify for tax deductions.
SC chairman Datuk Mohammad Faiz Azmi has framed the Social Exchange as an attempt to “institutionalise trust in social finance” by applying capital market principles such as disclosure, governance and accountability to charitable fundraising.
For now, however, the Social Exchange is not an exchange in the conventional sense. There are no shares to buy, no investment returns to earn and no tradable instruments. At least in its initial phase, Impakrintas facilitates only direct cash donations to approved NPOs.
Future phases could expand into waqf-based instruments, social sukuk and impact bonds, according to both the SC and LC Wakaful.
Applying capital market discipline to charity
Under the SC’s Guidelines on Social Exchange Platforms, operators are required to conduct due diligence on NPOs, verify their eligibility, assess the viability of social-impact projects and monitor whether funds are used in accordance with disclosed objectives.
Operators of the Social Exchange platform must also ensure direct payment of funds from donors to NPOs and avoid taking custody of donations.
Firdaus says Impakrintas imposes no fees on donors and does not hold donor funds.
“Donors contribute directly to listed social-impact projects, and 100% of the donation amount is transferred to the participating NPO’s bank accounts via the payment gateway,” he explains.
According to Firdaus, participating NPOs cannot simply create a fundraising page and begin soliciting donations. “They must meet governance, financial, disclosure and reporting requirements prescribed under the SC’s Guidelines on Social Exchange Platforms, both before and after fundraising takes place.”
The SC guidelines require NPOs to have operated continuously for at least three years, maintain a minimum of two full-time employees and submit audited financial statements for the past three years. They must also be approved under subsection 44(6) of the Income Tax Act 1967 and keep fundraising proceeds in segregated trust accounts.
Impakrintas says participating organisations must also disclose their board structures, fundraising objectives and evidence of prior social impact activities.
The platform currently hosts eight NPOs covering healthcare access, food security, environmental sustainability and youth programmes. They are:
• OrphanCare Foundation, which runs youth and family development programmes;
• Pertubuhan Tindakan Wanita Islam Malaysia (Pertiwi), which provides food aid and support services for homeless individuals and low-income families;
• Yokuk, which delivers community palliative care in Kelantan;
• Food Aid Foundation, which focuses on nationwide food security and surplus food redistribution;
• Pertubuhan Kebajikan Nourish Malaysia, which tackles child malnutrition among low-income households;
• National Cancer Society of Malaysia, which provides temporary accommodation for underprivileged cancer patients and caregivers;
• Suriana Welfare Society Malaysia, which helps low-income communities generate income through food waste recycling initiatives; and
• MySkills Foundation, which supports at-risk youths through technical and vocational training programmes.
The limits of transparency
Despite the guidelines, the challenge is whether these requirements go far enough. Although donors can view real-time expenditure updates, spending is displayed only in broad categories such as operating expenses and project costs.
Under Impakrintas, Firdaus maintains that fund utilisation reports are audited annually, while social-impact reports must undergo external verification before they are published on the platform.
“NPOs are responsible for reporting how funds are spent, but Impakrintas does not simply accept those reports at face value,” he says. “Supporting receipts and documentation must be submitted, fund utilisation is reviewed against the approved project scope, and annual audited fund utilisation reports provide an additional layer of independent assurance.”
Still, the framework depends heavily on disclosures by NPOs themselves.
The SC guidelines require platform operators to take “all reasonable steps” to monitor whether funds are utilised according to stated objectives and to notify the regulator immediately of false statements, material omissions or significant developments affecting projects.
However, the guidelines stop short of requiring continuous independent monitoring of individual transactions. Instead, the framework relies primarily on disclosures by NPOs, supported by audits and external verification.
If an NPO is found to have misused funds or breached reporting obligations, Impakrintas can suspend fundraising activities, terminate participation and refer cases to relevant authorities for further consideration and action.
Firdaus acknowledges that regulation alone cannot eliminate risk.
“While no fundraising model can eliminate all risks, Impakrintas was designed to strengthen transparency, accountability and governance throughout the fundraising lifecycle,” he says.
That could well be the Social Exchange’s biggest challenge.
Malaysia’s charitable ecosystem has long operated largely on goodwill, personal networks and reputation. The SC now wants to apply capital market principles to philanthropy in the hope that greater transparency will strengthen public confidence.
For all its talk of governance and accountability, the platform must still convince donors that it offers something meaningfully different from existing fundraising channels.
If donors cannot see that difference, or if NPOs find the compliance requirements too onerous, the Social Exchange programme risks becoming just a well-intentioned experiment rather than the foundation of a broader social finance ecosystem.
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