Session 8:

INTEREST SCHEMES BLUEPRINT : 2020 - 2024

Mohd Razin MuhammadHead of Section, Interest Schemes,

Registration Services DivisionSuruhanjaya Syarikat Malaysia

BLUEOCEAN

GROWTHFROM :

GOLF

TIME-SHARE

MARINA

MEMORIALPARKS

TO: MEMORIAL

PARKS

CHIROPRACTICE& MATERNITY

RETIREMENT HOMES

BIO-TECHNOLOGY

TIME-SHARE

FRACTIONAL OWNERSHIPTRAVEL AND LEISURE EDUCATION

AND R&D

MARINA

GOLF

TELE-COMMUNICATION

ECO -TOURISM

AGRO -TOURISM

LOW AWARENESSOF INDUSTRYTo formulate dynamicstrategies to facilitatediscovery of industry

UNIQE VALUEPROPOSITIONS

Decoding InterestScheme to see itsunique features.

INCLUSIVE LEGALFRAMEWORK

The Interest Schemes Act2016 promotes inclusivity,scaleability and flexibility.

FUTURE ECONOMY –CHALLENGES ANDOPPORTUNITIES

Forward planning to meetthe challenges and seize

opportunities of theFuture Economy.

CATALYSTS FOR BLUEPRINT

12

3Spin off cashflow throughupfront collection of fees Generating Recurring

IncomeMonetisation of LowRevenue GeneratingAsset

DECODING INTEREST SCHEME1. REVENUE DIVERSIFICATION

STRATEGY2. MULTIPLIER OFECONOMIC VALUE

back

AR & VR

Robotics

ArtificialIntelligenceSystem

Integration

AdditiveManufacturing

RenewableEnergy

CloudComputing

InformationSecurity

InternetOf Things

1

2

3FUTUREECONOMY

Big DataAnalytics

Nano Tech

Blockchain

7

Source:

FUTUREECONOMY

BUYER

Alternative FinancingFinancing gapsUnderserved market

Online Market PlaceCost cuttingMarket liquidity

Cross Sector Synergiesand CollaborationCommon GoalsNational Shared Prosperity

Expansion of supportindustryMarket research, analysis andratingsShariah advisory / auditStandards setting / compliance

Online Market PlaceSeamless user experienceMarket liquidity# Information & education# scam prevention

360 DEGREE BLUEPRINTTax Incentive & EPF withdrawal

SELLER

INTERMEDIARYGOVT, AGENCIES

01

02

03

04

4 in 1 digital Platform

Alternative Financing

Lifestyle Innovation likePreparing for AgeingPopulation

Shariah Compliant

DigitalEconomy

Inclusivity

12th

MalaysianPlan

FOC

US

GR

OW

TH A

REA

S

ALINGNING WITH NEXTMALAYSIAN PLAN

In theworks

HYBRID SCHEMES

Feeder funding for entry intoInterest Schemes centric industry.

LIFESTYLE INNOVATION Generate new income

stream from newbusiness models.

UNDERSERVED MARKET

Huge financing gap for SME.

PUBLIC - PRIVATE FINANCING& SOCIAL ENTERPRENEURSHIPSynergy and smart partnershipto reduce Govt burden to carryout public infrastructure projectsor public interest services likehealth, ageing population andeducation.

FOCUS GROWTH AREASALTERNATIVE FINANCING PLATFORM

Golf Infrastructure

PAY PER USE VS PAY BEFORE USE

Innovate current model to bemore attractive by twin benefits

Higher Risk sector with keyrole for National economicgrowth and self-sufficiency.

TRADING EDUCATION

INFORMATION

INFORMATION PLATFORM Basic info on the

scheme.

News and updates.

TRADING PLATFORM Fast connectivity to interest

holders.

Market Info

Secondary market/ liquidity

News & update

Scams alerts

ENQUIRY /COMPLAINT

ENQUIRY PLATFORM

• Enquiries

• Complaints

4 IN 1 INTEREST SCHEME DIGITAL PLATFORMEDUCATION PLATFORM

Investor education

Industry education

Value addedinformation.

FOCUS GROWTH AREAS

84.8%

81.8%

36.4%

33.3%

Tax incentives

Tax exemptions

Stampy dutyexemptions

EPFwithdrawals

Industry survey has laid out 4 Incentives goalsfor interest holders and scheme operators that

are beneficial for SSM to focus on

MONETARY INCENTIVES FOR THE STAKEHOLDERSIncentivesTask Force

Interest Holders Tax incentiveseg lower stamp duty /

exemption, income tax reliefs

Schemeoperators tax

incentives, lowerdevelopmentcosts, capital

allow etc

FOCUS GROWTH AREAS

7.8 Million or20% of Nationalpopulation willreach old age in2050

20%

Life expectancy ofMalaysianpopulation by 2050.

80 YEARS

80%

40%SS

55%

65%

Entering old ageEVERY YEAR

150,000

Women, Family &CommunityDevelopmentMinistry)Source:

FOCUS GROWTH AREASLIFESTYLE INNOVATION : PREPARING FOR AGEING POPULATION

1

2

3

Pre-sell package exceeding 1year (promote affordability)

Offer to working class (pre-retirement with buying power)

EPF withdrawal to promotequality living after retirement

UNICEF in Forum“Malaysia’sPopulation In 2050:What Does ThisMean Socio-Economically?”

SHARIAHADVISORYCOMMITTEE

STEP 2

FOCUS GROWTH AREASINTEREST SCHEMESSHARIAH COMPLIANTFRAMEWORK

SHARIAHGOVERNANCEFRAMEWORK

SHARIAHAUDIT, REVIEWAND RISKMANAGEMENTFRAMEWORK

SHARIAHBUSINESSMODELS

STEP 3

STEP 4

STEP 1 IMPLEMENTATION

LLPs Others

GATE

WAY

STEP 5

Alternative FinancingInnovative and flexible financing solution forSMEs

Developing Market IntermediaryBuilding up resources and repurpose disruptedservices and professions.

Alternative Asset Class / OwnershipMonetise business assets innovatively to optimizerevenue generation.

Leveraging on Lifestyle InnovationKeeping up with innovation in the travel, wellness,ageing and sports industry.

Contribute towards Economic GrowthPotential economic financing to reduce Governmentspending and assist with economic growth

2

NATIONAL SHAREDPROSPERITY GOAL

THANK YOU