Set up a Fintech Company in Malaysia
Updated on Monday 20th November 2017
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The fintech sector can be an attractive industry for the businessmen who want to open a company in Malaysia, as the local authorities are constantly creating a better legal environment to address the needs of this investment field. The value of the fintech transactions for this year is estimated at $ 7,207 million, while the annual growth rate for the period 2017 - 2021 is expected to reach 21.4%.
More importantly, by 2021, the fintech market in Malaysia will reach a total value of $ 15,640 million. The largest market segment available in the fintech sector is the digital payments; our team of specialists in company formation in Malaysia can provide in-depth assistance on the regulations applicable to a specific business activity, as the Malaysian legislation prescribes different set of rules, varying on the company’s operations.
Legislation on Malaysian fintech activities
Specific business activities carried out in the fintech operations are regulated under the Financial Services Act 2013.
Investors interested in starting the procedure of company registration in Malaysia must comply with the above mentioned law if they carry out the following activities:
• payment instruments;
• operating a payment system.
The main institution which regulates the enactment of the law is the Bank Negara Malaysia (BNM), which has recently established a new regulation for innovative companies operating in this sector. Our team of agents in company formation in Malaysia can provide in-depth information on the new legal framework, which is presented below.
Regulations for fintech innovations in Malaysia
In 2016, BNM introduces a new regulation, applicable to certain types of fintech companies. The law, the Financial Technology Regulatory Sandbox, is applicable to the following types of legal entities operating in the fintech sector:
• fintech companies collaborating with financial institutions;
• fintech companies operating under the regulations of the Financial Services Act;
• companies operating under the Islamic Financial Services Act;
• companies regulated under the Money Services Business Act.
Those who want to start the company formation in Malaysia in the fintech industry can benefit from various incentives (for example, exemption on the payment of the corporate tax), under the Malaysia Tech Entrepreneur Program. Investors can contact our team of consultants for further information related to the registration of a fintech business.