Malaysia’s peer-to-peer (P2P) financing sector continued to grow in scale and relevance in 2024, driven by strong private investor participation despite a reduction in public co-investment activity. According to the latest annual report by the Malaysia Co-Investment Fund (MyCIF), 4,464 micro, small and medium enterprises (MSMEs) received P2P financing support last year, marking a 24 percent increase year-on-year.
While MyCIF’s share of total P2P fundraising declined from 13 percent in 2023 to 10 percent in 2024, the gap was filled by rising private capital flows. Since its inception, MyCIF has channelled over RM1.1 billion into P2P campaigns. This has played a pivotal role in narrowing Malaysia’s MSME financing gap, estimated at over RM90 billion, especially for smaller businesses that remain underserved by traditional financial institutions.
microLEAP, a licensed P2P platform regulated by the Securities Commission Malaysia, continued its upward momentum in the second quarter of 2025, disbursing RM55 million across 70 investment notes. This represents a 139 percent increase compared to the same quarter last year. Of these notes, 69 were fully Shariah-compliant, reflecting strong demand for ethical financing solutions. Gross average investor returns stood at 16.8 percent per annum, excluding government-matched programmes.
The platform’s default rate held steady at only 0.40 percent, significantly below the market average of 4.18 percent. This outcome reflects microLEAP’s robust credit framework, disciplined underwriting, and active risk management approach. In the same quarter, the company welcomed 1,198 new investors and participated in 24 industry events nationwide, underscoring growing investor confidence and engagement.
To support the national agenda of increasing access to capital beyond urban centres, microLEAP expanded its physical footprint by opening new offices in Kelantan, Kota Bharu and Northern Johor, Muar. This aligns with the Securities Commission’s 5-Year Roadmap to enhance MSME participation in capital markets and deepen financial inclusion across underserved regions.
microLEAP’s growth strategy is also regional in scope. The company has announced plans to expand into Indonesia and the Philippines, beginning with Jakarta and Mindanao, to offer Shariah-compliant financing solutions and attract institutional Islamic investors. These efforts were recently highlighted by IFN Investor as part of Malaysia’s growing fintech leadership across ASEAN.
“Heading into the second half of 2025, microLEAP will continue its regional growth strategy, expand its product suite and strengthen investor capabilities, while remaining focused on ethical and impactful financing,” said Tunku Danny Nasaifuddin Mudzaffar, Founder and Chief Executive Officer of microLEAP.
Malaysia’s P2P model is increasingly seen as a regional benchmark for responsible scaling. It is underpinned by structured regulatory oversight, dual Islamic and conventional frameworks and comparatively lower default rates. In contrast, regional peers such as Indonesia and Thailand continue to face higher default ratios and more limited institutional participation. As bank lending remains cautious and working capital gaps persist among MSMEs, P2P platforms like microLEAP are becoming a critical component of the country’s financial infrastructure.
With disciplined operations, expanding investor trust and a clear focus on underserved markets, microLEAP is reshaping how financing is delivered to the most essential segment of Malaysia’s economy. This is a segment that demands speed, flexibility and inclusion. microLEAP remains committed to meeting that demand through technology-enabled, ethical and sustainable finance.For more information on how microLEAP can fund your business or support your investment journey, visit www.microleapasia.com.
