Malaysia's First Equity Crowdfunding Laws Require Licensed Trustee Services

Businesses that intend to use equity crowdfunding (ECF) to raise capital in Malaysia are now required to appoint a licensed trustee to hold and administer the funds during the crowdfunding offer period. Celine Chan, Managing Director of the Malaysia office, discusses the business advantages of the new ECF legislation and its impact.  

To keep pace with the growing investor market, Malaysia is the first country in the Asia Pacific region to legislate equity crowdfunding (ECF), standardising activities and translating innovation into wealth.

In July this year, the Capital Markets and Services Bill 2015 was passed; regulating the ECF framework and promoting private financing for research and development, commercialisation and innovation (R&D&C&I).