Page 81 - SC SCAR 2023 ENGLISH Flipbook

PART 3 STRENGTHENING THE SUSTAINABILITY AND COMPETITIVENESS OF THE CAPITAL MARKET
While promoting innovation, investor protection remains paramount in the capital market. With the advancements of technology and maintaining competitiveness in the market, the SC will explore using cases with high propositions alongside industry partners. Use cases which have been highlighted from industry feedback include eKYC through Digital Identity and asset tokenisation.
Asset tokenisation has been a prominent topic within the capital market which essentially enables better investor access and increases liquidity of traditional securities through tokenisation. There has been a growing interest among local incumbents to explore tokenisation of traditional assets such as fixed income instruments and fund products in 2023.
EMBRACING INNOVATION FOR GREATER GROWTH
The SC remains committed to fostering innovation and technological advancement within the Malaysia capital market to address increasing demand for digital and online services. This approach is aimed at accelerating
digitisation among capital market entities and adoption of innovative fintech solutions in the overall ecosystem, leading to greater growth and development in the market.
Catalysing Digitisation of the Capital Market through Digital Innovation Fund
Recognising the role of capital market players in pushing new frontiers via digitalisation, the Digital Innovation Fund (DIGID) was set up by the SC to co-fund new-to- market, scalable and sustainable innovative solutions. In line with the SC’s MSME agenda, the RM30 million fund aims to support smaller capital market players to develop projects that leverage technology. Additionally, this initiative aims to foster new growth opportunities and competitive propositions within the Malaysian capital market.
DIGID will be administered over a three-year period – from 2023 to 2025, or until fully utilised. The funding amount per project will defray up to 70% of approved qualifying expenses, capped at RM500,000. Successful DIGID Award recipients will receive funding on a
In 2023, 15 projects were selected for the DIGID Award, with solutions as follows:
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 79