SC Unveils Regulatory Sandbox Guidelines to Facilitate Innovation

KUALA LUMPUR, Feb 17 (Bernama) -- The Securities Commission Malaysia (SC) has released its regulatory sandbox guidelines, outlining the eligibility criteria and requirements for participation.

In a statement today, the commission said the regulatory sandbox, announced last year, is a tool that enhances policies and ensures they are fit for purpose by providing a controlled environment for entities to test innovative capital market products or services.

SC chairman Datuk Mohammad Faiz Azmi said the sandbox facilitates responsible innovation in the capital market while also ensuring robust investor protection.

“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 said.

The SC said the sandbox is open to those introducing new capital market products or services that are not yet available in Malaysia and fall outside the SC’s existing frameworks.

Applicants must show a clear value proposition; have solid testing plans and outcomes; sufficient resources; a realistic business plan for post-testing commercialisation; and the necessary infrastructure, governance, and working prototypes to start testing, SC said.

The commission also encouraged products and solutions focusing on financial inclusiveness, Islamic finance, or retirement solutions.

The evaluation stage is expected to take two months, depending on the complexity of the applications. Successful candidates will be informed of their admittance into the sandbox. Application forms are now available for those preparing ahead of the application window opening in April.

Applications for the sandbox will be open from April 15 to May 31, 2025. Applicants will be notified within 30 days of submission if they have progressed to the evaluation stage.

-- BERNAMA