In Malaysia, halal crowdfunding is becoming part of islamic finance acting as an alternative financing instrument to facilitate the implementation of projects for malysian borrowers who are facing difficulties to raise money through the classical lending channels.
The main difference of halal crowdfunding in Malaysia with conventional crowdfunding is the utilisation of the Murabaha principle which allows to finance trade which are underlined by tangible goods. The combination of Islamic finance with crowdfunding will solve the SMEs problems in Malysia. Islamic Crowdfunding encourage cooperation amongst islamic communities in Malaysia to collect funds for a business or social project in Malaysia.
Malaysian investors who are participating in a campaign first purchase the goods and sell it later to the borrower against a profit margin.
For SMEs in Malaysia islamic crowdfunding is the real alternative as the banking support including sharia banking financing support for SMEs is generally missing because Islamic financing has served large malaysian corporates mainly.
MALAYSIA ONLINE ISLAMIC CROWDFUNDING PLATFORMS
MALAYSIA ISLAMIC CROWNDFUNDER