Securities Commission Malaysia (SC) has recently unveiled a new set of guidelines for its regulatory sandbox, a platform designed to foster innovation in the capital markets by allowing for the testing of novel products and services.
According to FinTech News Malaysia, the initiative was first announced at the SCxSC FinTech Summit last year, signalling SC’s commitment to evolving its regulatory framework to accommodate emerging financial technologies.
Starting from 15 April to 31 May 2025, the SC will accept applications for the sandbox, providing a unique opportunity for pioneers in the financial sector to trial innovations that may not yet conform to existing regulations. Successful candidates will be informed within 30 days post-application if they have been selected to move on to the evaluation phase. This phase can extend up to two months, with the duration varying based on the complexity of the proposal.
The guidelines specify that the focus of the sandbox will be on innovations that enhance financial inclusiveness, cater to the needs of Islamic finance, or aim to improve retirement planning. To qualify for participation, applicants are required to present a robust value proposition, detailed testing plans, effective winding-down strategies, and adequate resources in terms of operations, infrastructure, and governance.
Moreover, a clear commercialisation strategy must be demonstrated to ensure the viability of the product or service beyond the testing phase.
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