KUALA LUMPUR, 12 February 2026 – Malaysia has taken a significant step toward strengthening its social finance ecosystem after the Securities Commission Malaysia (SC) appointed LC Wakaful Digital Sdn Bhd (LCWD) as the country’s first Social Exchange Platform operator. The move marks a milestone in expanding capital market participation beyond traditional investments and into structured social impact financing.
The Social Exchange, introduced under the Capital Market Masterplan 2026–2030 (CMP), is designed to provide a regulated and transparent platform that enables non-profit organisations to raise funding for social impact initiatives while giving donors greater visibility and confidence in how their contributions are utilised.
Institutionalising Social Finance Through Capital Markets
The appointment of LC Wakaful Digital reflects Malaysia’s broader ambition to institutionalise social finance within its capital market framework. By establishing the Social Exchange platform, Malaysia aims to bridge funding gaps faced by non-profit organisations while introducing governance standards and transparency typically associated with financial markets.
SC chairman Datuk Mohammad Faiz Azmi emphasised that the initiative represents a critical milestone in building a market-driven and accountable social finance ecosystem. He noted that the Social Exchange provides “a structured avenue for non-profit organisations to scale their impact while giving donors the transparency and confidence they need.”
The initiative aligns with the CMP’s whole-of-nation approach, reinforcing collaboration between the public and private sectors to support national economic resilience and sustainable development.
Impakrintas Platform to Launch on 19 February 2026
LC Wakaful Digital will establish and operate Malaysia’s first Social Exchange platform, known as Impakrintas, which is scheduled to go live on 19 February 2026.
During its initial phase, the platform will facilitate direct cash donations from individuals and institutions to approved non-profit organisations, with contributions eligible for tax benefits under Malaysia’s Income Tax Act 1967.
At launch, six non-profit organisations are expected to be onboarded, with projects spanning key areas including:
- Healthcare access
- Youth education and development
- Food security initiatives
- Environmental sustainability
- Inclusive livelihood programmes
These projects represent priority sectors aligned with Malaysia’s broader social and sustainability objectives.
Strengthening Governance, Transparency and Trust
The Social Exchange operates under regulatory guidelines issued in September 2025, which outline disclosure requirements, governance standards and operational frameworks to ensure accountability and protect stakeholders.
LC Wakaful Digital is registered under Section 76A of the Capital Markets and Services Act 2007 and will be responsible for ensuring platform integrity, onboarding eligible organisations and maintaining compliance with regulatory requirements.
The SC will closely monitor the platform’s performance, including participation levels, operational viability and overall market readiness, before considering the appointment of additional Social Exchange operators in the future.
Expanding the Scope Beyond Donations
While the initial phase will focus on donation-based fundraising, future phases of the Social Exchange are expected to expand to include broader capital market instruments, opening new avenues for impact investing and sustainable finance participation.
This evolution could eventually allow investors to participate in social impact projects through structured financial instruments, aligning Malaysia’s capital market with global trends in sustainable and responsible investing.
Strategic Implications for Malaysia’s Capital Market Development
The establishment of the Social Exchange reflects Malaysia’s growing leadership in sustainable finance and capital market innovation.
The initiative supports several long-term objectives, including:
- Broadening capital market participation beyond traditional investors
- Strengthening Malaysia’s sustainable finance ecosystem
- Supporting non-profit organisations with scalable funding solutions
- Enhancing transparency and accountability in social funding
The Social Exchange also complements Malaysia’s ambitions to position itself as a regional hub for Islamic finance, ESG investments and socially responsible capital market initiatives.
A New Era of Market-Based Social Impact Financing
The appointment of LC Wakaful Digital represents a pivotal step in transforming how social impact projects are funded in Malaysia.
By leveraging capital market infrastructure and regulatory oversight, the Social Exchange introduces a more structured, transparent and scalable approach to social financing.
As the platform launches and expands, it is expected to play an increasingly important role in mobilising private capital toward social and environmental development, reinforcing Malaysia’s commitment to sustainable economic growth and inclusive development.
