KUALA LUMPUR: The social exchange (SE) is set to be officially launch end of this year, according to the Security Commission (SC) chairman Datuk Seri Dr Awang Adek Hussin.
He added that the exchange will be opened for registration at the first quarter of 2025.
On May 28, he had said that the social exchange framework will outline governance and assurance requirements to ensure that funds raised through the SE are used appropriately as intended.
The SE is expected to be showcased at the ASEAN Summit next year, which will be hosted by Malaysia.
"Maybe we can showcase that we are doing something here. It's something that the ASEAN countries also can consider doing because the needs and requirements are basically similar in every country," he said
On advisory comittee, he said it will be established to speed up its implementation by the end of this year.
"Normally, the advisory committee will be chaired by SC with representatives from Ministry of Finance (MoF) and Bursa Malaysia," he said in a media briefing after delivering his speech at the second day of the Global Forum on Islamic Economics and Finance (GFIEF) at KLCC today.
"For instance in India, this is run on the stock exchange. So we will have to explore whether it can be run by our Bursa Malaysia as one of the possible option but that is to be determined," he added.
According to him, the exchange will benefit entities, such as non-governmental organisations (NGOs), social enterprises and state Islamic religious councils, to fund their projects that have positive social outcomes.
Commenting on assurance requirements, Awang Adek emphasised that the entities will go through the vetting process.
This is to ensure the project or programme listed onthe exchange for funding are credible.
"One of the objectives is once people know that we have credible framework, then a lot more people will come out, want to contribute.
"The other one is those money raised will be used as intended because we have assurance, whereby the entities must be registered," he added.
Compare to equity crowfunding (ECF) and peer-to-peer (P2P), Awang Adek stated that the SE is not intended to gain profit but to help those in need.
"One of the issues in the country is that some of the waqf properties have not been developed for a long time.
"They may not have the funding to develop. So this is one way of helping the needy," he said.
Awang Adek said the framework is still at preliminary stage for now and will be launched after approved by the MoF.
