MITI and SC lift NIMP CoSIF co-investment ratio to 1:1 for ECF and P2P raises

The Ministry of Investment, Trade and Industry (MITI) and the Securities Commission Malaysia (SC) jointly announced on 21 July 2026 a reset of the co-investment thresholds under the New Industrial Master Plan 2030's Strategic Co-Investment Fund (NIMP CoSIF), the public-private scheme that channels government capital alongside equity crowdfunding (ECF) and peer-to-peer (P2P) financing campaigns (The Star). Under the change, the "Other Sectors" co-investment ratio is being temporarily raised to 1:1 from 1:2, and a new 2:1 tier is being introduced for Smart Manufacturing. Both moves are aimed at accelerating capital deployment for SMEs and mid-tier companies (MTCs) at a time of softer market sentiment.

The deal

NIMP CoSIF was launched in February 2025 with an initial RM131.5 million allocation. Under its original structure, the scheme co-invested alongside private investors in eligible ECF and P2P campaigns at three ratios: 1:1 for Priority Sectors (aerospace, chemical, electrical and electronics, pharmaceutical, medical devices) and New Growth Sectors (advanced materials, EVs, renewable energy, CCUS), capped at RM 20 million per campaign; and 1:2 for "Other Sectors" — the broader bucket covering 16 NIMP 2030 industries including digital and ICT, automotive, food processing, halal, machinery, palm oil products, rail, and textile — capped at RM 10 million per campaign.

The 21 July reset changes two of those ratios. The "Other Sectors" co-investment ratio is being temporarily raised to 1:1 from 1:2 — meaning for every RM 1 raised from private investors, the government now matches with RM 1 instead of RM 0.50 — until 31 December 2027. The new Smart Manufacturing scheme introduces a 2:1 ratio, where the government contributes RM 2 for every RM 1 raised privately, in effect until 2030. The Smart Manufacturing tier is open to SMEs and MTCs investing in automation, Industry 4.0 adoption, artificial intelligence, robotics, data analytics and integrated digital solutions. The 0.5% concessionary rate for the P2P financing component is unchanged across all three tiers.

Mechanically, the government does not write cheques directly to issuers. ECF and P2P campaigns are raised on registered Recognised Market Operator (RMO) platforms as normal; on top of the private capital, NIMP CoSIF routes its matching amount into the same campaign through the platform. A RM 1 million ECF raise in an "Other Sectors" business, for example, would now attract an additional RM 1 million of government co-investment through the platform, versus RM 500,000 under the previous 1:2 ratio. The per-campaign cap of RM 10 million for "Other Sectors" and RM 20 million for Smart Manufacturing remains unchanged, as does the rule that total co-investment in any one company (or group of related companies) cannot exceed 10% of total NIMP CoSIF funds.

Why this matters

For ECF and P2P platform operators, the 1:1 reset is the most direct intervention in the equity-crowdfunding market since the framework was liberalised. Under the old 1:2 ratio, the government was effectively a minority co-investor in "Other Sectors" campaigns; under 1:1, it is now dollar-for-dollar. The practical effect: an "Other Sectors" campaign that closes RM 1 million from retail now also gets RM 1 million from NIMP CoSIF, doubling the total raise without doubling the retail target. For ECF issuers, that means the same RM 1 million of retail demand now gets a RM 2 million round, with the second RM 1 million coming at 0% effective cost of capital — the matching amount takes the form of equity at the same terms as the retail investors.

The numbers are already non-trivial. As of end June 2026, NIMP CoSIF had supported RM 185 million in fundraising for 40 Malaysian companies across all 25 NIMP 2030 sectors — and every ringgit of that flowed through an SC-regulated ECF or P2P platform. With the 1:1 ratio now in place for "Other Sectors" until end-2027, the government is effectively telling the market: deploy through ECF and P2P, and we will double the matching for the next 17 months.

The Smart Manufacturing 2:1 tier is the policy headline. This is the first time a Malaysian government co-investment scheme has offered a 2-for-1 matching rate on a sectoral basis through ECF platforms, and it locks in through 2030 — a 4.5-year window that materially de-risks ECF raises for Industry 4.0 capex, particularly for mid-tier manufacturers that have been waiting for a more patient funding leg. For platform operators that already have a pipeline of smart-factory deals, the 2:1 tier effectively turns their sales motion from "raise RM 1 million" to "deliver a RM 3 million round" without asking retail investors to take a heavier lift. Where MyCIF's VC/PE Profit-Sharing Incentive let institutional VCs co-invest on the same terms as ECF investors, NIMP CoSIF's new tiers have the government itself stepping in as the matching capital.

What's next

The 1:1 "Other Sectors" ratio is effective immediately and runs until 31 December 2027. The 2:1 Smart Manufacturing ratio runs until 2030. ECF and P2P platform operators will need to update their co-investment disclosure templates and any closed campaign documentation referencing the prior 1:2 ratio. The SC's next quarterly Recognised Market Operator statistics should show whether the 1:1 change actually moves the needle on "Other Sectors" deal volume — the fund is operational, the platforms are wired, and the question is now whether issuer take-up follows the more generous matching rate. Watch the SC's RMO statistics release for 3Q 2026; that will be the first clean read on the post-change deployment pace.

Source: The Star — New NIMP CoSIF scheme offers higher funding support for smart manufacturing