Securities Commission of Malaysia Appoints LC Wakaful Digital as First Social Exchange Operator
The Securities Commission of Malaysia (SC) has made a significant stride in social finance by appointing LC Wakaful Digital (LCWD) as the operator of Malaysia’s very first social exchange platform. This initiative is part of the broader Capital Market Master Plan 2026-2030 (CMP), which aims to enhance access to social impact financing.
What Is a Social Exchange?
The social exchange platform is designed to facilitate non-profit organizations in collecting donations for eligible social projects. This structured and transparent system ensures that donors have clear visibility regarding the utilization of their funds and the outcomes of the projects they support. By bridging the gap between social initiatives and funding, the platform will play a critical role in promoting social finance in Malaysia.
Significance of the Appointment
SC President Dato’ Mohammad Faiz Azmi referred to this appointment as a pivotal milestone. He emphasized that the establishment of the social exchange will foster a well-governed, market-based framework for social finance, ultimately instilling trust among donors and non-profits alike. As he stated, “With the Social Exchange, we are institutionalizing trust in social finance.”
Enhancing Impact and Transparency
This initiative offers non-profit organizations a structured method to amplify their impact, while simultaneously providing donors with the assurance of transparency they require. Dato’ Faiz further expressed, “We offer nonprofits a structured way to increase their impact while providing donors with the transparency and trust they need.”
Timeline and Future Developments
This important appointment follows the Prime Minister’s announcement in May 2024 about the launch of the social exchange, as well as the completion of a pilot program by the SC in the first half of 2025. On September 19, 2025, the SC released guidelines for social exchange platforms, outlining regulatory requirements for operators and participating organizations. Applications will open on this date as well.
Operational Responsibilities of LCWD
As the appointed operator, LCWD will establish and manage the social exchange platform named Impakrintas. The organization will ensure the onboarding of eligible non-profit organizations in compliance with the newly published guidelines. In the first year of Phase 1, the SC will evaluate market participation and assess the overall viability and readiness of the platform, before potentially appointing additional operators.
Launch Date and Focus Areas
The social exchange platform is set to go live on February 19, 2026. In its initial phase, it will facilitate direct cash donations to approved non-profit organizations that qualify for tax benefits under the Income Tax Act of 1967. The first batch of projects will include initiatives focusing on healthcare access, youth education, food security, inclusive livelihoods, and environmental sustainability.
As the social exchange landscape evolves, it is expected that this platform will significantly influence how social projects are financed in Malaysia, enhancing the landscape for social impact and financial transparency.
Featured image credit: Edited by Fintech News Malaysia, based on an image from Freepik