The Malaysia Co-investment Fund receives an additional RM20 million, bringing its 2026 allocation to RM50 million, with new schemes for the silver economy and venture capital
KUALA LUMPUR: The government has allocated an additional RM20 million to the Malaysia Co-investment Fund (MyCIF). This supplements the RM30 million announced in Budget 2026, bringing the total allocation for this year to RM50 million.
Finance Minister II Datuk Seri Amir Hamzah Azizan said this reflects the government’s confidence in the model. “That additional investment allows us to do more,” he said in his keynote address at MyCIF Engagement Day.
He announced the launch of a new ‘silver economy scheme’ to direct investments into MSMEs. These businesses will develop services and innovative solutions for an ageing population.
MyCIF also introduced a venture capital and private equity profit-sharing incentive. This arrangement will bring professionally vetted deals onto equity crowdfunding platforms.
Amir Hamzah said this represents a significant structural shift. It will make such deals accessible to a much wider pool of investors.
The existing food security scheme will be expanded to support agritech startups. This includes ventures in precision farming, sustainable aquaculture, and supply chain technology.
The minister noted that 89% of MyCIF investments in 2025 were channelled to micro and small businesses. “When the rakyat leads, and the government backs them, public money works harder,” he stated.
He emphasised that MyCIF does not operate in isolation. Under the Fourth MADANI Budget, the government has committed RM50 billion in loan and guarantee facilities for 2026.
This includes RM2.5 billion to TEKUN and Bank Simpanan Nasional for microfinancing. A 50% additional tax deduction for AI and cybersecurity training has also been introduced.
Initiatives like the green investment tax allowance are supporting the green transition. These measures are designed to help MSMEs compete in a digital-first world.
In a separate development, the Securities Commission Malaysia and Bursa Malaysia are strengthening the LEAP Market. They aim to facilitate the transition of ECF companies towards a LEAP listing.
This will enhance their visibility and provide a pathway between private and public markets. The SC will also streamline the transfer from the LEAP Market to the ACE Market.
A key change involves removing the exit offer requirement to reduce costs. This initiative is expected to be implemented by the second half of this year.
“Ultimately, this will strengthen the overall funding escalator,” Amir Hamzah added. It positions equity crowdfunding as a stepping stone for MSMEs before a public listing.
The Sun Malaysia
