Business

SC unveils first participants in Malaysia’s capital market regulatory sandbox

The Sandbox serves as part of the SC’s broader innovation toolkit, allowing regulators to refine frameworks and policies while working closely with industry players

Updated 8 months ago · Published on 26 Nov 2025 2:29PM

SC unveils first participants in Malaysia’s capital market regulatory sandbox
SC Chairman says the Sandbox is intended to serve as a springboard for innovation that supports market integrity - November 26, 2025

THE Securities Commission Malaysia (SC) has named six companies to form the inaugural cohort of its Regulatory Sandbox, an initiative designed to accelerate responsible innovation and strengthen inclusivity within the nation’s capital market.

The Sandbox, introduced at the SCxSC Fintech Summit last year, enables corporations to test new products and services in a controlled, real-world environment.

It serves as part of the SC’s broader innovation toolkit, allowing regulators to refine frameworks and policies while working closely with industry players.

Applications, open from 15 April to 31 May 2025, had drawn significant interest from across the market.

Following a multi-stage evaluation process, six participants were selected under three central themes: facilitating alternative real-estate investments through Wahed X Sdn Bhd and Urban NX Sdn Bhd; enhancing market vibrancy via secondary markets through Kapital DX Sdn Bhd and Pitch Platforms Sdn Bhd; and advancing alternative financing through Virtual Economy Technology Sdn Bhd and PeerHive (M) Sdn Bhd.

The SC said the cohort would pioneer new approaches across their respective sectors, with several participants incorporating advanced data analytics and blockchain to bolster due-diligence processes and introduce novel operating models.

Successful applicants will undertake a testing period of around 12 months, beginning either in January or July 2026, depending on their readiness.

SC Chairman Datuk Mohammad Faiz Azmi said the Sandbox is intended to serve as a springboard for innovation that supports market integrity.

“This initiative reflects our commitment to creating an environment where innovation can thrive without compromising investor protection. By encouraging experimentation within a controlled framework, the SC aims to nurture forward-thinking ideas that can strengthen market efficiency,” he said.

The SC also encouraged corporations with innovative business models to continue engaging through its Alliance of FinTech Community (aFINity), where proposals may be submitted directly to the regulator. - November 26, 2025

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