CapBay has facilitated over RM6 billion in financing to more than 2,700 Malaysian small and medium-sized enterprises (SMEs) in the last decade. This milestone comes as Budget 2027, tabled on 9 October 2026, reinforced the role of peer-to-peer (P2P) financing in supporting local businesses. Manforce Group, one of the many beneficiaries, exemplifies how CapBay’s solutions address critical cash flow challenges faced by growing businesses.
The fintech leader celebrated its 10th anniversary, reflecting on its journey from a RM6,000 loan to a sole proprietor to becoming a key player in Malaysia’s SME financing environment. Over this period, CapBay has issued 45,000 financing notes, demonstrating its commitment to empowering businesses across 20 industries.
Bridging the Cash Flow Gap
For many Malaysian SMEs, winning larger contracts often coincides with cash flow challenges. Manforce Group Berhad, a workforce management firm, experienced this firsthand during its expansion. Andrew Chin, the company’s Finance Director, highlighted the critical role of cash flow management in growing businesses, especially in sectors requiring significant upfront operational costs.
“Unlike traditional financing models, which focus heavily on physical collateral, CapBay took the time to understand our business model and offered flexible, considerate terms,” said Andrew Chin, Finance Director of Manforce Group Berhad. “Having a financing partner that provides faster access to funds allowed us to bridge liquidity gaps during challenging periods like the COVID-19 pandemic and optimise our cash conversion cycle, enabling us to focus on business expansion with confidence.”
A Decade of Growth and Impact
CapBay’s co-founders, Ang Xing Xian, Edwin Tan, and Darrel Ang, marked the company’s anniversary by emphasizing its impact. “It is thousands of payrolls met, contracts delivered and businesses still trading,” said Ang Xing Xian, Co-Founder and Group CEO of CapBay. This achievement shows CapBay’s role in sustaining and growing Malaysia’s SME ecosystem.
The company’s success lies in its unique approach to financing. Instead of relying on physical collateral, CapBay assesses businesses based on their operations, using live trading data, invoice validity, and buyer payment records. This method reduces approval times from months to days, making it a preferred choice for SMEs needing quick access to capital.
This approach has positioned CapBay as a conduit for public funds, working with initiatives like the Malaysia Co-Investment Fund (MyCIF) and the NIMP Strategic Co-Investment Fund (CoSIF). The company also collaborates with government agencies, supporting national schemes and priorities under the 13th Malaysia Plan, including programs like BERKAT and RMK13. Additionally, CapBay partners with TERAJU and the Malaysia Digital Economy Corporation (MDEC) to support Bumiputera entrepreneurs and the digital economy.
P2P Financing Gains Momentum
The Securities Commission Malaysia (SC) introduced its P2P regulatory framework in 2016, paving the way for platforms like CapBay. According to the SC Annual Report 2025, alternative financing avenues raised RM5.7 billion for MSMEs and mid-tier companies in 2025, a 39% increase from the previous year. P2P financing alone raised RM2.8 billion in 2025, up from RM2.5 billion in 2024.
Budget 2027 further solidified the role of P2P platforms, allocating RM270 million to attract private capital into SMEs and social enterprises through these channels. The government also fixed stamp duty on P2P financing agreements at RM10 from 1 January 2027 to 31 December 2030, reducing costs for borrowers and lenders alike.
