CapBay expands financing for Malaysian SMEs as P2P support strengthens

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CapBay expands SME financing

Highlights

CapBay has disbursed more than 45,000 financing notes totalling over RM6 billion using a digital assessment model based on SME operating data.
The Securities Commission Malaysia's 2025 Annual Report recorded a 39.0% increase in alternative financing for MSMEs and mid-sized companies to RM5.7 billion, while P2P financing rose to RM2.8 billion in 2025.
Budget 2027 allocates RM270 million to attract private capital to SMEs through P2P and crowdfunding platforms, and imposes a RM10 stamp duty from 2027 to 2030.

This article was translated from the original. Read the original version by our correspondent here.

Financing growth and the digital assessment model

As reported by The Edge Malaysia, CapBay marked its 10th anniversary with more than 45,000 financing notes disbursed, having started with its first RM6,000 financing facility for a sole proprietor importing laboratory equipment for a local university.

CapBay co-founder and Group Chief Executive Officer Ang Xing Xian said surpassing RM6 billion is not merely a number, but reflects thousands of salaries paid, contracts fulfilled and businesses kept running. The company focuses on assessing businesses based on operating activity rather than collateral assets, with its Supply Chain Finance and Peer-to-Peer Financing platforms analysing current trade data, invoice validity and buyer payment records to shorten approval times from months to just a few days.

The model is used by companies such as Manforce Group Berhad, which faced cash flow pressure while expanding. Its Finance Director, Andrew Chin, said faster access to funding helped the company bridge liquidity gaps, including during challenging periods such as the COVID-19 pandemic, while improving its cash conversion cycle to support business expansion.

Policy support and impact on the SME ecosystem

CapBay also serves as a channel for public funds through co-investment frameworks such as the Malaysia Co-Investment Fund and NIMP Strategic Co-Investment Fund under the Securities Commission Malaysia. In addition, the company is an appointed financial intermediary for SME Corp. Malaysia under the Ministry of Entrepreneur Development and Cooperatives, while also working with TERAJU and the Malaysia Digital Economy Corporation to support Bumiputera entrepreneurs and technology financing.

Since the P2P regulatory framework was introduced by the Securities Commission in 2016, the channel has become increasingly established in the country's business financing landscape. The Securities Commission's 2025 Annual Report shows that alternative financing channels raised RM5.7 billion for MSMEs and mid-sized companies in 2025, up 39.0% from the previous year, while P2P financing rose to RM2.8 billion from RM2.5 billion in 2024.

Budget 2027, presented on 9 October 2026, further reinforces this trajectory with an allocation of RM270 million to attract private capital to SMEs, mid-sized companies and social enterprises through P2P and equity crowdfunding platforms. The government has also set a RM10 stamp duty on financing agreements executed through P2P platforms from 1 January 2027 to 31 December 2030, a move that Ang said confirms that regulated digital financing is now part of how Malaysia finances SMEs.

In our earlier report on SME Corp Malaysia's Sinar Programme, the initiative was described as a channel for financing support and business assistance for micro, small and medium-sized enterprises affected by supply chain disruptions and rising operating costs. The article also highlighted Budget 2027's focus on allocating substantial funds for MSME development, including financing facilities, automation and digitalisation to strengthen the sector's resilience and growth.

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