What is NIMP CoSIF?
The NIMP 2030 Strategic Co-Investment Fund (NIMP CoSIF) is a government-backed co-investment initiative developed jointly by the Ministry of Investment, Trade and Industry (MITI) and the Securities Commission Malaysia (SC).
Its purpose is clear: help SMEs and mid-tier companies (MTCs) raise growth capital through the capital market — specifically via Equity Crowdfunding (ECF) and Peer-to-Peer Financing (P2P) platforms.
CoSIF is not a grant. The company must first raise money from private investors through a participating ECF or P2P platform. Once the campaign meets the required conditions, CoSIF co-invests alongside those private investors at a pre-set ratio based on the company’s sector.
The broader policy message: Malaysia wants more growing companies to tap the capital market earlier, rather than depending solely on bank loans.
Why Was CoSIF Introduced?
Malaysia has a real financing gap.
• MSMEs make up about 97% of all firms, contribute roughly 38% of GDP, and employ about 48% of the national workforce
• Mid-tier companies, estimated at around 8,500 firms, are often called the “missing middle” — too large for SME-targeted government assistance, yet not large enough to access capital like public-listed corporations
• Many MSMEs struggle with bank financing due to limited operating history, perceived higher risk, lack of collateral, or strict bank eligibility criteria
CoSIF addresses this through a blended model: private investors move first, and government-backed co-investment follows to boost funding confidence.
How Does CoSIF Work?
The company does not apply directly to the SC for cash. Instead, it applies for fundraising through a participating ECF or P2P platform.
Step What Happens
1 The SME or MTC starts a fundraising campaign on a participating ECF or P2P platform
2 Private investors review the campaign and invest or lend
3 The platform monitors the campaign and checks CoSIF eligibility
4 Once the campaign hits the required target and meets the criteria, CoSIF co-invests at the relevant sector ratio
5 The platform disburses the total funds raised to the company
Who Should Consider Applying?
CoSIF suits companies that are growth-ready but not yet ready for a traditional IPO or large institutional fundraising.
Company Type Why CoSIF May Fit
Manufacturing SMEs CoSIF is directly linked to NIMP 2030 and industrial upgrading
Mid-tier companies May need larger growth capital but fall outside typical SME grant criteria
High-growth startups Especially those with clear commercial traction and scalable models
Export-oriented businesses Companies seeking working or expansion capital
Strategic sector companies Priority sectors attract stronger co-investment support
Credible but collateral-constrained firms ECF or P2P may suit companies that banks overlook
CoSIF is not for companies with weak governance, unclear accounts, poor compliance, or no credible growth story. ECF and P2P platforms conduct due diligence before allowing any fundraising campaign to proceed.
Which Sectors Get Stronger Support?
Sector Group Examples Co-Investment Support
Priority sectors Aerospace, chemical, E&E, pharmaceutical, medical devices 1:1 ratio, up to RM20 million per campaign
Other sectors Digital/ICT, automotive, food processing, halal, rubber, textiles, wood & furniture 1:2 ratio, up to RM10 million per campaign
New growth sectors Advanced materials, EV, renewable energy, CCUS 1:1 ratio, up to RM20 million per campaign
For P2P financing, a 0.5% concessionary rate applies for eligible sectors under the scheme.
CoSIF is particularly relevant for companies connected to Malaysia’s industrial transition, advanced manufacturing, the green economy, and export competitiveness.
ECF or P2P — Which Route Fits Your Business?
Route What It Means Best Suited For
ECF The company raises money by offering shares to investors Growth companies willing to share ownership
P2P The company borrows money and repays with interest Companies with cash flow to service repayment
Companies that want to preserve ownership will find P2P more suitable. Companies that need growth capital and can accept some shareholder dilution may prefer ECF.
There are currently 12 SC-registered ECF operators and 14 SC-registered P2P platforms in Malaysia.
Five Reasons to Pay Attention to CoSIF
- Better fundraising credibility Government-backed co-investment alongside private investors can strengthen market confidence in a campaign.
- Access to non-bank financing CoSIF opens a route for companies that do not fit traditional bank lending requirements.
- Suited for growth sectors Technology, manufacturing, renewable energy, medical devices, and E&E companies often need risk capital, not only debt.
- A stepping stone to larger capital market access A successful ECF or P2P campaign builds a fundraising track record ahead of future VC, LEAP, ACE, or Main Market activity.
- Alignment with national industrial policy Companies in NIMP 2030-aligned sectors benefit from a clear policy tailwind.
What Should Companies Prepare?
Treat CoSIF preparation like you are meeting professional investors — because you are.
Area What to Prepare
Financials Latest management accounts, audited accounts, revenue trend, cash flow
Business model Clear explanation of products, customers, pricing, and margins
Use of funds Exact purpose — machinery, working capital, expansion, or technology
Growth case Market size, contracts, pipeline, and expansion plan
Governance Company structure, directors, shareholders, compliance track record
Risk disclosure Key business risks and how management plans to address them
Exit or repayment logic For ECF: investor return pathway. For P2P: repayment capacity
This is where many SMEs fall short. CoSIF can provide funding support, but it does not replace proper business discipline.
My View: Useful, But Only for Serious Companies
CoSIF is a well-structured policy instrument because it does not simply distribute money. It uses private investor participation as a market test, which keeps the mechanism disciplined.
For Malaysia, the scheme can deepen the capital market by bringing more SMEs and MTCs into ECF, P2P, venture capital, private equity, and eventually public markets. The SC’s roadmap targets growing MSME and MTC capital market fundraising from RM6.3 billion in 2023 to RM40 billion by 2028, targeting around 28,000 companies with strong capital market potential.
For business owners, the message is straightforward: CoSIF is attractive, but it rewards preparation. Companies with proper accounts, a clear growth strategy, credible management, and transparent use of funds will stand the best chance.
The Bottom Line
NIMP CoSIF is one of Malaysia’s more practical attempts to connect SMEs and mid-tier companies with the capital market. It supports the national industrial agenda, reduces investor risk, and gives growth companies a route beyond bank loans.
Companies in manufacturing, technology, the green economy, E&E, medical devices, renewable energy, halal, and food processing should take note. For these businesses, CoSIF can be more than a funding mechanism — it can be the starting point of becoming genuinely capital-market ready.
Want to find out more? Visit: www.sc.com.my/msme-mtc-roadmap/cosif Email: NIMPCoSIF@seccom.com.my
References: Securities Commission Malaysia. (2025). NIMP 2030 Strategic Co-Investment Fund (NIMP CoSIF). Securities Commission Malaysia. (2025). Catalysing MSME and MTC Access to the Capital Market: NIMP Strategic Co-Investment Fund [Presentation].