Securities Commission to review structure for property crowdfunding platforms in Malaysia

Malaysia’s Securities Commission (SC) will be reviewing the details of a proposed structure for the property crowdfunding platforms announced in the Budget 2019 statement last Friday (Nov 2).

The authority said on Monday that it is “supportive of innovative ideas that tap on the transformative power of technology to democratise investments, allowing more financing options for Malaysians to buy their first homes and enhance their socio-economic well-being”.

Expected to take effect in Q1 next year, SC added that the new framework will “balance promoting innovation with ensuring proper safeguards to protect the integrity of the scheme and investors’ interest”.

Platform operators must register with the SC and fulfill eligibility, transparency and financial requirements.

Malaysia’s Prime Minister Tun Dr Mahathir Mohamad has said that the property crowdfunding platform can help build one million houses in 10 years, Bernama reported.

If the results are satisfactory, the scheme could result in more people being able to buy houses and “more can be built”, Mahathir was quoted as saying.

Under the proposed scheme, first-time home buyers could pay just 20 per cent of the cost of a house. Investors will help pay for the majority of the cost.Cr

Source: BusinessInsider