The global halal industry represents a significant opportunity to develop Islamic capital market models on a much larger scale, both locally and globally.
Halal Development Corporation (HDC) chairman Datuk Mahmud Abbas said the micro, small and medium enterprises (MSME) could benefit greatly from the financial capital market that can be generated via the Islamic funding mechanisms, such as equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms.
However, he said the potential of ECF and P2P financing in support of halal businesses is yet to reach its true potential.
SC chairman Datuk Syed Zaid Albar said the introduction of ECF and P2P frameworks by the SC had provided businesses and entrepreneurs, particularly MSMEs, additional fundraising avenues through the capital market.
He said since their introduction, the alternative market-based fundraising platforms have benefited close to 3,000 MSMEs.
Despite the uncertainties of 2020, Zaid Albar said total amounts raised for ECF were more than 5.5 times higher and 1.2 times higher for P2P platforms than the previous year.
Zaid Albar said these platforms’ offering of shariah-compliant solutions has grown, with six platform operators and more than RM1.6 million raised using Islamic investment notes on P2P platforms.
“We expect this rising trend to continue with increased interest in shariah-compliant offerings from potential issuers, as well as investors,” he said. – NST ONLINE