KUALA LUMPUR, Jan 27- Securities Commission Malaysia (SC) has introduced SARANA, an alternative financing scheme offered through nine peer-to-peer (P2P) financing platform operators.

The scheme, under the government e-procurement system, aims to assist the working capital needs of Micro, Small, and Medium Enterprises (MSMEs) as well as small contractors involved in government contracts.

SARANA offers two main financing options.

Invoice financing will support cash flow after the project is completed.

Meanwhile, advance financing for contract execution will support initial working capital needs before the project begins.

This initiative aligns with the SC's Five-Year Plan, which aims to facilitate access to the capital market.

P2P platform operators play a crucial role in meeting the financing needs of local companies, since the related regulatory framework was introduced in 2016.

As of September 30, 2024, P2P financing has successfully raised a total of RM7.9 billion.