ABSTRACT
This chapter studies peer-to-peer (P2P) lending in Malaysia. P2P lending enables lenders and borrowers to connect directly without a financial intermediary. Securities Commission (SC) Malaysia is responsible for financial technology (Fintech) in Malaysia. SC announced rules and regulations for P2P lending in Malaysia in 2016. P2P lending has a two-sided effect on lenders and borrowers. Borrowers obtain an opportunity of financing, and the procedure of borrowing is simple and timesaving. However, borrowers face high interest rates and concerns about their privacy. Furthermore, lenders able to invest with small capital in P2P lending without professional skills needed. In contrast, lenders are exposed to high default risk. Additionally, from the comparison of P2P lending in Malaysia and Singapore, there is no significant distinction in operational procedure and regulation.
