Malaysia’s securities regulator has appointed LC Wakaful Digital Sdn Bhd (LCWD) as the first operator of a new “Social Exchange Platform”, a move aimed at bringing capital-markets-style governance and transparency to donation-based funding for social projects.
The Securities Commission Malaysia (SC) said the appointment is a key step in rolling out the Social Exchange initiative under the Capital Market Masterplan 2026–2030, which seeks to broaden access to social impact financing and expand market participation beyond traditional investors.
LCWD will be responsible for establishing and operating the country’s first Social Exchange Platform, branded Impakrintas, and for onboarding eligible non-profit organisations in line with regulatory requirements set out in the Guidelines on Social Exchange Platforms released on Sept. 19, 2025.
Applications for registration as an operator opened on the same date, the SC said.
The platform is scheduled to go live on Feb. 19, 2026, as the first year of Phase 1. In this initial phase, Impakrintas will facilitate direct cash donations from donors to approved non-profit organisations that qualify under Malaysia’s tax rules, the SC added.
Donations made through the platform will be eligible for equivalent tax treatment under the Income Tax Act provisions cited by the regulator, benefiting both donors and fundraising organisations.
SC Chairman Mohammad Faiz Azmi said the Social Exchange is intended to “institutionalise trust” in social finance by providing a structured avenue for non-profits to raise funds while giving donors greater visibility over the use of funds and the impact of supported projects.
The initiative follows a May 2024 announcement by Malaysia’s prime minister on introducing a Social Exchange, and a pilot programme conducted by the SC in the first half of 2025.
The regulator said it will closely assess participation levels, orderly development, and the platform’s viability during the first year before considering expansion to additional operators.
In subsequent phases, the scope of the Social Exchange is expected to broaden to include wider participation and capital market instruments, beyond direct donations.
At launch, six non-profit organisations are expected to be onboarded, with projects spanning areas such as access to healthcare, youth programmes related to sexual and reproductive health education, food security, inclusive livelihoods and environmental sustainability.
Malaysia is effectively trying to “formalise” social fundraising by putting it inside a regulated market structure: a registered operator, defined onboarding standards for non-profits, and an emphasis on traceability and impact reporting.
