PETALING JAYA: Equity crowdfunding (ECF) and peer-to-peer (P2P) financing were among several proposals discussed at a Securities Commission (SC) workshop this week on ways to bridge the financing gap for micro-, small- and medium-sized enterprises (MSMEs) in the agriculture sector.
The workshop, called GROW, is a collaborative effort under the SC’s fintech flagship initiative called SCxSC. About 40 representatives of agencies and industry players attended.
SC chairman Awang Adek Hussin said it was important that access to the capital market for local businesses be broadened.
“We have seen how technology has democratised financing via digital platforms such as ECF and P2P financing,” he told the workshop. “We believe these alternative financing avenues have the potential to address some of the funding needs of the MSMEs in the agriculture sector as well.”
At the workshop participants also called for greater coordination within the ecosystem to develop the agriculture sector further in an effort to strengthen food security for the country.
They also emphasised the need for greater awareness on the role of alternative financing for the agriculture sector.
The SC said there will be a nationwide GROW roadshow next year to raise awareness on ECF and P2P financing as viable funding options for agro-based MSMEs to grow their businesses.
“These programmes will complement efforts by the government to support alternative fundraising businesses in the agriculture sector,” it added.
Source: https://www.freemalaysiatoday.com/category/business/2022/11/02/alternative-financing-options-mooted-for-msmes-in-agri-business/