Crowdinvesting - Malaysia

  • Malaysia
  • The Crowdinvesting market in Malaysia is projected to reach a total transaction value of US$2.0m in 2024.
  • When compared globally, it is evident that the United Kingdom leads with a transaction value of US$608m in 2024.
  • Malaysia's Crowdinvesting market is gaining traction, attracting diverse investors looking to participate in innovative capital-raising opportunities.

Key regions: Europe, Singapore, United States, India, China

 
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Analyst Opinion

The Crowdinvesting market in Malaysia has been experiencing significant growth in recent years, driven by customer preferences for alternative investment options and the local special circumstances in the country.

Customer preferences:
Investors in Malaysia are increasingly looking for alternative investment options that offer higher returns compared to traditional investment avenues. Crowdinvesting provides individuals with the opportunity to invest in a diverse range of projects and businesses, allowing them to diversify their investment portfolio and potentially earn higher returns. Additionally, crowdinvesting platforms often offer lower investment thresholds, making it more accessible to a wider range of investors.

Trends in the market:
One major trend in the crowdinvesting market in Malaysia is the growing popularity of equity crowdfunding. Equity crowdfunding allows individuals to invest in startups and early-stage companies in exchange for a stake in the business. This trend has been driven by the increasing number of entrepreneurs and startups in Malaysia, as well as the government's efforts to promote entrepreneurship and innovation in the country. Another trend in the market is the emergence of sector-specific crowdinvesting platforms. These platforms focus on specific industries such as real estate, renewable energy, or technology, allowing investors to invest in projects that align with their interests or values. This trend reflects the growing demand for specialized investment opportunities and the desire for investors to support projects that have a positive social or environmental impact.

Local special circumstances:
Malaysia has a vibrant entrepreneurial ecosystem, with a large number of startups and small businesses looking for funding to grow and expand. However, traditional funding options such as bank loans or venture capital may not be readily available to these businesses. Crowdinvesting provides an alternative source of funding, allowing entrepreneurs to access capital and investors to support local businesses and contribute to economic growth. The regulatory environment in Malaysia has also played a role in the development of the crowdinvesting market. The Securities Commission Malaysia introduced the regulatory framework for equity crowdfunding in 2015, which has provided a level of investor protection and helped build trust in the industry. This has encouraged more individuals to participate in crowdinvesting and has attracted both local and international platforms to operate in the country.

Underlying macroeconomic factors:
The strong economic growth in Malaysia has created a favorable environment for crowdinvesting. The country has experienced steady GDP growth, low inflation, and a stable financial system, which has increased investor confidence and willingness to explore alternative investment options. Additionally, the government has implemented various initiatives to promote entrepreneurship and innovation, including tax incentives and support programs, which have further fueled the growth of the crowdinvesting market. In conclusion, the crowdinvesting market in Malaysia is experiencing significant growth due to customer preferences for alternative investment options, the emergence of sector-specific platforms, the local entrepreneurial ecosystem, and the supportive regulatory environment. These factors, combined with the underlying macroeconomic factors, have created a conducive environment for crowdinvesting to thrive in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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