Ethis Group has launched the first fully Shariah-compliant equity crowdfunding platform in Malaysia, according to a note from the company. Ethis already operates in Indonesia with another platform planned to commence soon in Dubai. The announcement of the launch was made during Islamic Fintech Week 2020 (IFW2020).
IFW2020 is a series of virtual programs co-organized by Elmangos Ventures and Ethis Ventures in partnership with Malaysia Digital Economy Corporation (MDEC) and others. The event was inaugurated by Malaysia’s Deputy Minister of Finance II, YB Tuan Mohd Shahar bin Abdullah. The theme for IFW 2020 “Envisioning Islamic Fintech Future”.
Ethis Malaysia received approval from Securities Commission Malaysia – a regulator known for being forward-thinking when it comes to Fintech.
In Indonesia, Ethis reports that it has attracted investors from over 50 different countries to invest in social and affordable housing campaigns since its inception in 2014. Consistent with the Group’s mission of driving impactful and sustainable investment in the real economy, Ethis Malaysia CEO, Mohamed Shehzad Islam stated during its launch that Ethis Malaysia will prioritize investment opportunities with positive impact.
“Ethis Malaysia uses technology to channel funds and circulate wealth in the real economy, specifically in funding healthy SMEs across our focus industries. We see an unprecedented opportunity for Islamic fintech to drive financial inclusion and sustainability,” stated Shehzad.
Ethis said it would essentially function like a digital stock exchange in Malaysia. Malaysian companies will raise funding via share issuances and investors will subsequently be able to trade these shares.
Ethis Malaysia is focusing on SMEs and the agricultural sector in its first year of launch. There are plans to have both property and waqf assets investment listed on their platform in 2021.
Ethis Malaysia said it is actively collaborating with other ecosystem players in various sectors including the Food Security Exchange (FSX) and Francorp Malaysia.
FSX is described as an A.I. driven data platform to enhance food security and sustainability within ASEAN and the wider Asian region with a mission of encouraging more “agri-food and aquatech-related companies” to use the platform.
Francorp is a franchising development consultant and is expected to encourage companies to raise capital on Ethis Malaysia’s platform.