Public-Private Financing Platform Boost Lending

The Malaysia Co-Investment Fund (MyCIF) has arrived in Sabah. MyCif is Malaysia's first public-private co-investment partnership funding platform launched under the Federal Budget in 2019 by the Ministry of Finance and administered by the Securities Commission Malaysia (SC). MyCif leverages on equity crowdfunding (ECF) and peer-to peer (P2P) financing platforms to support micro, small and medium enterprises (MSMEs) through a 1:4 co-investment ratio for the General Scheme and a 1:2 co-investment ratio for the Food Security Scheme and Environmental and Social Impact Scheme.

“We recognise that most Micro, Small, and Medium Enterprises (MSMEs) still face persistent challenges in accessing capital to innovate and expand. Traditional financing models, while vital, sometimes present hurdles such as collateral requirements, lengthy processes or a limited understanding of niche, innovative ventures unique to Sabah's landscape,” Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said on 31st July 2025 at the Malaysia Co-Investment Fund (MyCIF) Nationwide Roadshow in Le Meridien Hotel, Kota Kinabalu.

"Enhancing access to alternative financing to overcome these limitations includes bridging financing gaps by providing MSMEs with access to funding and financing as alternatives to traditional bank loans. Strengthening access to alternative financing can unlock economic value across the supply chain from food security to eco-tourism.” Datuk Phoong Jin Zhe,Minister of Industrial Development and Entrepreneurship, delivered CM/s speech.

"This also includes encouraging local entrepreneurs to leverage MyCIF's matching investment model to scale their businesses. With readily available financing, this offers a lifeline to businesses in remote areas, or those in specialised sectors like eco-tourism and small-scale sustainable agriculture, who often find it difficult to secure traditional loans. Alternative source of financing will enable Sabah's young, innovative entrepreneurs in the digital and creative spaces, to bring their ideas to fruition.” Hajiji added.

"This also includes encouraging local entrepreneurs to leverage MyCIF's matching investment model to scale their businesses. With readily available financing, this offers a lifeline to businesses in remote areas, or those in specialised sectors like eco-tourism and small-scale sustainable agriculture, who often find it difficult to secure traditional loans," Hajiji added. “Alternative source of financing will enable Sabah's young, innovative entrepreneurs in the digital and creative spaces, to bring their ideas to fruition.”

Participants at the roadshow get to connect network with SC-registered ECF and P2P platform operators. The series of breakout sessions and exhibitors dedicated to addressing the fundraising needs of businesses, providing valuable insights into alternative financing options will benefit local Sabah businesses. MyCIF has played a pivotal role in improving access to the alternative financing sector and fostering the growth of MSMEs in the local Malaysian start-up ecosystem. MyCif was granted a seed funding of RM260 million since its inception, and it has co-invested RM1 billion in 9,000 MSMEs.

Hajiji said that Sabah has registered a record high total economic output of RM84.3 billion in 2024, continuing a strong upward trend since 2021. "Total trade value has also surpassed RM100 billion for three consecutive years, with a peak of RM118 billion in 2022. Sabah's economic transformation has been remarkable. Our five-year Hala Tuju Sabah Maju Jaya (SMJ) economic roadmap - crafted in 2021- is on the right track,” Hajiji said. “Sabah's focus is now shifting towards downstream processing and value-added industries.”

Sabah has experienced significant economic growth with success in several deals including the following:
• landmark Commercial Collaboration Agreement (CCA) with Petronas, which gave Sabah greater participation and a greater share in the oil and gas sector.
• new industrial parks in Kota Belud, Beaufort, and Kudat for the Blue Economy Industrial Park.
• new industrial parks in Kota Belud, Beaufort, and Kudat for the Blue Economy Industrial Park.
• new industrial parks in Kota Belud, Beaufort, and Kudat for the Blue Economy Industrial Park.
• new industrial parks in Kota Belud, Beaufort, and Kudat for the Blue Economy Industrial Park.
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