KUALA LUMPUR, Sept 25 — The Securities Commission has registered EdgeProp Sdn Bhd, making the firm of The Edge Media Group chairman Datuk Tong Kooi Ong the first property crowdfunding (PCF) firm in the country.

The SC said it granted approval in principle to the firm this month to begin its PCF activities.

“Property crowdfunding offers the same potential as that of ECF and P2P financing

platforms in providing an alternative source of financing but is specifically tailored for first-time homebuyers.

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“At the same time, it will provide investors access to a new investment option,” the SC said in its announcement.

Finance Minister Lim Guan Eng announced the property crowdfunding initiative when tabling Budget 2019 last year and EdgeProp began publicity efforts shortly.

However, Opposition parties swiftly attacked the scheme as risky by citing distressed peer-to-peer (P2P) lending schemes in China that had then been on the verge of collapse.

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They also noted the role of Tong in the scheme, highlighting his media group’s coverage of 1MDB previously that is believed to have contributed to Barisan Nasional’s defeat in last year’s general election.

Aside from political opposition, others such as the Home Buyers Association have also criticised the scheme as a band aid to the fundamental issue of property prices that have spiralled beyond what typical Malaysians could afford.

Lim acknowledged the dangers involved in the crowdfunding structure of the scheme last year, but argued that its potential benefits were worth the risk.