Malaysia proposes extending equity-crowdfunding investor relief to 2030

A proposed four-year investment window

Appendix 26 proposes continuing the incentive for investments made from 1 January 2027 to 31 December 2030. It describes the existing 50% exemption and limits rather than announcing a higher relief percentage. This is a proposed extension, not an enacted change to the investment deadline.^[1]

An income exemption, not a 50% tax credit

Under the original 2022 Order, the beneficiary is a Malaysian-resident individual. The exempt amount equals 50% of the investment, capped at RM50,000 per assessment year and 10% of aggregate income in the year of exemption. Relief arises in the second assessment year following the investment year; it is not a refund of half the investment cost.^[2]

The 2024 Amendment Order added the 1 January 2024–31 December 2026 investment window and nominee limited liability partnerships alongside direct ECF and nominee-company routes. The nominee must meet the Order’s Malaysian residence and ECF-operator establishment conditions. That LLP route is an existing amendment, not a new Budget 2027 concession.^[3]

Certification and related-investor conditions

The original Order requires annual ECF-operator certification verified by the Securities Commission, and prohibits full or partial disposal within two years. Its family condition is precise: specified close relatives must not also invest in the same investee company. It should not be replaced by a general assertion that any family connection to the business disqualifies the investor.^[2]

Paragraph 4 excludes individuals claiming the venture-investment deduction under P.U. (A) 117/2022 or receiving the exemption under P.U. (A) 167/2014. The ECF Order also preserves tax-return and information obligations. It supplies no corporate-investor exemption simply because the investee raises capital through an approved platform.^[2]

Relevance for business financing

The Securities Commission’s same-day Budget response places ECF and peer-to-peer financing within a RM270 million MSME funding allocation. That financing support is distinct from the investor’s tax exemption; it is not an additional deduction or credit under the ECF Order.^[4]

For groups assessing Malaysian start-up funding, the practical distinction is between the company receiving equity and a qualifying individual claiming relief. The proposal would lengthen the investment window, but does not establish that every group investment or nominee arrangement qualifies. Implementing terms require separate review before treating 2027 investments as legally eligible.^[1][4]