KUALA LUMPUR, Jan. 18 (Xinhua) -- The Securities Commission Malaysia (SC) has rolled out Malaysia's first social exchange pilot program (SEPP25), beginning with five non-governmental organizations (NGOs) showcasing social impact projects.

SC said in a statement on Friday that the social exchange is a structured platform for fundraising dedicated to projects with positive social outcomes through the mobilization of private sector funding or philanthropic capital.

It is expected to be fully operational in 2026 and will benefit entities such as NGOs and social enterprises.

The SEPP25 forms a major step towards establishing the country's first-ever social exchange, as announced by Malaysian Prime Minister Anwar Ibrahim at the Global Forum on Islamic Economics and Finance in May last year in Kuala Lumpur.

The SC chairman, Mohammad Faiz Azmi, said the initiative reinforces the SC's continuous efforts in meeting the sustainable development goals and is well-timed as it resonates with the 2025 Malaysian chairmanship of ASEAN theme of inclusion and sustainability.

According to the statement, this pilot phase aims for a deeper understanding of critical components towards establishing the social exchange leveraging the Malaysian capital market infrastructure and acting as an enabler in fulfilling the funding needs of the third sector encompassing NGOs and social enterprises through a regulated environment.

During the pilot phase, the five NGOs will engage with the SC to share relevant data and information as well as provide inputs on areas that the SC has identified as key to the building blocks of the social exchange. ■