Since launching its comprehensive suite of Islamic products in June 2023, Funding Societies, the Singapore-based unified digital finance platform for SMEs, has Secured around $64.22 million in Islamic business financing to more than 2,500 Malaysian MSMEs.
Funding Societies said this milestone, attained through 8,000 Islamic investment notes, shows its commitment to MSMEs
Funding Societies noted that Malaysia’s global leadership in Islamic finance and Islamic capital markets makes it essential to offer a wide range of Shariah-compliant solutions alongside conventional structures to narrow the RM290 billion micro-SME (MSME) financing gap identified by PwC for Securities Commission Malaysia.
“We are proud of the team for reaching another milestone, surpassing the RM300 million disbursement mark in just one year and providing access to financing for more than 2,500 MSMEs, well ahead of our targets,” said Chai Kien Poon, Country Head, Funding Societies Malaysia. This underscores the interest and demand for both Islamic financing and investment products, Islamic financing already constitutes 15 percent of our portfolio, and we aim to increase this to 50 percent by 2025,” he added.
Funding Societies said SMEs are key to Malaysia’s expected 4–5% GDP growth in 2024 despite growing inflation and operational costs. It believed that continued financial support is essential to their growth, job creation, and economic contributions.
The Global Islamic Fintech Report 2023/24 by Dinar Standard predicted that the Islamic fintech market will outgrow the fintech sector. It said Malaysia and Indonesia are Islamic fintech hubs with high transaction volumes and market potential.
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Per the State of the Global Islamic Economy Report 2023, the halal economy, worth $6.25 trillion in 2022, is growing, with Malaysia topping the world since 2012.
It claimed this shows that halal economy Malaysian MSMEs may use digital Islamic financing solutions to grow. While expanding across five Southeast Asian nations, Funding Societies stated it will continue to empower underprivileged SMEs with its wide short-term finance alternatives.
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Funding Societies plans to continue forming industry alliances to reach under-represented yet creditworthy SMEs. It said that financial institutions, fintechs, and corporations must collaborate to grow the Malaysian economy.
Funding Societies | Modalku is Southeast Asia’s largest SME digital finance platform. Registered with the Securities Commission Malaysia (SC), licensed in Singapore, Indonesia, and Thailand, and operating in Vietnam.
Khazanah Nasional, SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, Samsung Ventures, BRI Ventures, Endeavour, SGInnovate, Qualgro, Golden Gate Ventures, and Penjana Kapital back it.
The FinTech company finances MSMEs using private and institutional investor funds.
About Funding Societies
Funding societies, Modalku pioneered Southeast Asian SME digital finance and debt investment platforms. Retail, institutional, and high-net-worth investors crowdfund quick finance to expand businesses.
