Malaysia Securities Commission launches Malaysia’s first Social Exchange Pilot Programme as step toward a Social Exchange expected in 2026

The Malaysia Securities Commission has rolled out Malaysia’s first Social Exchange Pilot Programme (SEPP25), starting with five non-governmental organisations showcasing social impact projects, as an initial phase toward establishing the country’s first Social Exchange. The planned Social Exchange is positioned as a structured fundraising platform for projects with positive social outcomes, aimed at mobilising private sector funding and philanthropic capital for NGOs and social enterprises. The pilot is intended to test core design components using Malaysian capital market infrastructure and to develop a regulated environment that supports third-sector fundraising with disclosure and reporting. During the pilot phase, the participating NGOs will share data and provide input on components identified by the Securities Commission as building blocks for the Social Exchange, including social project fundraising requirements, social impact reporting, capacity building programmes, and an onboarding process based on parameters set by the Securities Commission, including demonstrating the ability to report project outcomes. The initial participating NGOs are the Malaysian Association for the Blind, Malaysian Relief Agency, Mercy Malaysia, Suriana Welfare Society Malaysia, and WWF-Malaysia. Insights from SEPP25 are intended to support the Securities Commission in finalising the Social Exchange requirements framework later, with an Advisory Committee and an Implementation Committee established to guide the initiative through a phased approach. The Social Exchange is expected to be fully operational in 2026.