KUALA LUMPUR: The Securities Commission Malaysia (SC) has officially released its Regulatory Sandbox Guidelines, outlining the eligibility criteria and requirements for participation. The regulatory sandbox, initially announced during last year’s SCxSC Fintech Summit, serves as a structured environment for entities to test innovative capital market products and services while ensuring strong investor protection.
A Controlled Space for Innovation
SC Chairman Dato’ Mohammad Faiz Azmi emphasized the sandbox’s role in fostering responsible innovation in Malaysia’s capital market.
“By empowering industry players to experiment with innovative ideas, the sandbox embodies our vision of building a dynamic, inclusive, and future-ready capital market. It also fosters collaboration across the ecosystem, ensuring progress aligns with investor protection,” he stated.
Eligibility Criteria
To be considered for the sandbox, applicants must meet the following criteria:
- Introduce a capital market product or service that is not currently available in Malaysia and does not fully fit into existing SC frameworks.
- Demonstrate a clear value proposition to the Malaysian capital market.
- Present comprehensive testing plans, expected outcomes, and well-defined exit strategies.
- Showcase sufficient human, financial, and operational resources to support the initiative.
- Provide a viable business plan for commercial deployment post-testing.
- Possess the necessary infrastructure, governance framework, and fully functional prototypes to commence testing.
The SC is particularly encouraging applications focused on financial inclusiveness, Islamic finance, and retirement solutions.
Application and Evaluation Process
Applications for the sandbox will be open from 15 April to 31 May 2025. Candidates will be notified within 30 days of submission regarding their progression to the evaluation stage. The evaluation process is expected to take approximately two months, depending on the complexity of the application. Successful candidates will then be formally admitted into the sandbox.
To facilitate early preparation, the SC has made the Regulatory Sandbox Guidelines and application forms available in advance. Interested parties are encouraged to reach out for pre-consultation sessions via [email protected].
For more information and to access the guidelines and application forms, visit the SC’s official website at www.sc.com.my/development/digital/regulatory-sandbox
