The Securities Commission Malaysia (SC) has officially launched its Regulatory Sandbox Guidelines, providing details on the eligibility criteria and requirements for participation. This initiative, first introduced at last year’s SCxSC Fintech Summit, aims to create a controlled environment where entities can test innovative capital market products or services while ensuring they align with regulatory standards and investor protection.
Dato’ Mohammad Faiz Azmi, Chairman of the SC, emphasized that the sandbox is designed to promote responsible innovation within Malaysia’s capital market, helping to build a dynamic, inclusive, and future-ready market. “By empowering industry players to experiment with new ideas, the sandbox represents our vision of a progressive capital market, fostering collaboration across the ecosystem while ensuring investor protection,” he stated.
The eligibility criteria for participation in the sandbox include:
- Introduction of a capital market product or service that is not yet available in Malaysia and does not fully fit into existing SC frameworks.
- A clear value proposition for the Malaysian capital market.
- Comprehensive testing plans, expected outcomes, and winding-down measures.
- Sufficient resources, including human, financial, and operational capacity.
- A realistic business plan for commercializing the product post-testing.
- The necessary infrastructure, governance, and fully functional prototypes to begin testing.
Special consideration will be given to products focusing on financial inclusiveness, Islamic finance, or retirement solutions.
Applications will be accepted from April 15 to May 31, 2025. After submission, applicants will be notified within 30 days regarding their progression to the evaluation stage. This stage is expected to take approximately two months, depending on the complexity of the applications, after which successful candidates will be informed about their acceptance into the sandbox.
In addition to the guidelines, application forms are now available, allowing interested parties to prepare ahead of the opening date. The SC encourages potential applicants to contact [email protected] for pre-consultation sessions.
