Image credit: The Halal Times
KUALA LUMPUR: Small and medium enterprise (SME) financing platform Funding Societies Malaysia has introduced its Guaranteed Islamic Investment Note (GN-i) following the launch of its comprehensive Islamic financing solutions recently.
This new offering allows investors to diversify their portfolios through short-term, shariah-compliant investment notes.
By introducing shariah-compliant options for SMEs and investors, Funding Societies Malaysia aims to contribute to developing the Islamic capital market ecosystem as envisioned by the Securities Commission Malaysia.
Funding Societies Malaysia country head Chai Kien Poon said the company's shariah-compliant guaranteed investment product comes on the heels of its comprehensive SME Islamic financing solutions launch in May.
"Investors now have the opportunity to diversify their portfolios with shariah-compliant guaranteed investments, which, in turn, helps close the RM90 billion SME financing gap by supporting Malaysian SMEs to grow and expand their businesses," he said in a statement.
To note, the Securities Commission's 2022 Annual Report revealed that RM368.13 million out of RM1.7 billion was raised via shariah-compliant investments on peer-to-peer (P2P) or SME digital financing and equity crowdfunding (ECF) platforms.
With the growth potential in this sector, fintech players have been identified as key enablers for innovative solutions in the halal economy and Islamic social finance.
Funding Societies Malaysia, as a SME digital finance platform, provides financing to micro, small, and medium enterprises (MSMEs) through investment notes funded by retail, high-net-worth, and institutional investors.
Payments from MSMEs, including both principal and returns, are collected by the platform and distributed to investors according to the agreed schedule, which can extend up to 24 months.
Source: https://www.nst.com.my/business/2023/06/922562/funding-societies-malaysia-introduces%C2%A0-shariah-compliant-investment-note