Kuala Lumpur, 19 September 2025 — The Securities Commission Malaysia (SC) has issued the long-awaited Guidelines on Social Exchange Platforms, formally paving the way for Malaysia’s first dedicated Social Exchange aimed at enabling regulated fundraising for social impact and nonprofit projects. The move aligns with the country’s sustainability and inclusion objectives under the 13th Malaysia Plan.
Under the new rules, platform operators and participating non-profit organisations (NPOs) will need to meet eligibility criteria that include clear disclosure obligations, regular reporting of fund usage, mandates for donors to see how projects perform, and transparency in outcomes. These guidelines are intended to build trust, accountability, and oversight in social fundraising, addressing concerns over misuse and insufficient reporting in third-sector initiatives.
The concept of a Social Exchange in Malaysia isn’t new. Earlier this year, SC launched the Social Exchange Pilot Programme (SEPP25) involving five NGOs — Malaysian Association for the Blind, Malaysian Relief Agency, Mercy Malaysia, Suriana Welfare Society Malaysia, and WWF-Malaysia — to test how social-impact projects can be brought into a regulated exchange infrastructure. SEPP25 is expected to feed into the full Social Exchange operational model.
SC Chairman Dato’ Mohammad Faiz Azmi emphasised that the Social Exchange framework is a strategic tool to mobilise private and philanthropic resources for meaningful social outcomes. “Aligned with the priorities of the 13th Malaysia Plan, the Social Exchange ensures transparency and accountability in fundraising towards social impact projects,” he said, adding that applications to operate a social exchange open from 19 September 2025.
Key features of the guidelines include:
- Requirements for platform operators and NPOs to disclose use of funds and outcomes;
- Eligibility criteria that set a minimum standard for participating organisations;
- Regular reporting and assurances to donors;
- Transparent governance and oversight to ensure that funds raised go to the intended social projects;
- Mechanisms for registration and licensing of platforms that wish to operate such exchanges.
The guidelines take effect immediately. Interested platforms and NPOs are encouraged to review the requirements and consider how to meet them. Long term, SC expects the Social Exchange to be fully operational by 2026, providing a regulated avenue for fundraising with social impact.
