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THE Securities Commission Malaysia (SC) has officially appointed LC Wakaful Digital Sdn Bhd (LCWD) as the nation’s first Social Exchange Platform operator, marking a significant milestone in the development of Malaysia’s social finance ecosystem.
The Social Exchange, a flagship initiative under the Capital Market Masterplan 2026–2030 (CMP), aims to broaden access and encourage participation in social impact financing.
The platform will enable non-profit organisations to raise donations for eligible social projects while offering donors enhanced transparency on how funds are utilised and the tangible impact of their contributions.
SC Chairman Dato’ Mohammad Faiz Azmi emphasised the transformative nature of the platform, stating: “With the Social Exchange, we are institutionalising trust in social finance.
“We are providing a structured avenue for non-profit organisations to scale their impact while giving donors the transparency and confidence they need to participate in Malaysia’s sustainable development journey.”
The appointment of LCWD follows the Prime Minister’s announcement in May 2024 introducing the Social Exchange initiative and the successful pilot programme conducted by the SC in the first half of 2025.
The regulatory framework, outlined in the Guidelines on Social Exchange Platforms issued on 19 September 2025, sets clear requirements for operators and non-profit organisations, including eligibility criteria, disclosure obligations, and governance standards to ensure accountability and trust within Malaysia’s third sector.
Registered under section 76A of the Capital Markets and Services Act 2007 (CMSA), LCWD will establish and operate Impakrintas, Malaysia’s first Social Exchange Platform, onboarding eligible non-profit organisations in accordance with the Guidelines.
The first phase, set to go live on 19 February 2026, will facilitate direct cash donations from donors to approved non-profit organisations under subsection 44(6) of the Income Tax Act 1967.
Initially, six non-profit organisations are expected to join the platform, offering projects focused on equitable access to healthcare, early intervention in youth sexual and reproductive health education, food security, inclusive livelihoods, and environmental sustainability.
Donations made via the Social Exchange will benefit from tax incentives under subsection 44(6) and paragraph 13(1) of Schedule 6 of the Income Tax Act 1967, offering advantages for both donors and fund-raising organisations.
The SC will monitor the platform’s market participation, operational efficiency, and overall viability during this initial phase before considering expansion to additional operators and broader participation, including capital market instruments.
“This appointment represents a key step towards establishing a well-governed, market-based platform that strengthens the integrity and impact of social finance in Malaysia,” added Faiz. - February 12, 2026
