ISSN: 2222-6990
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The primary objective of this study is to evaluate community-based crowdfunding activities in Malaysia with a particular focus on the prevalent issues and existing legal framework. While the objective of crowdfunding is benevolent, there are, however, unscrupulous individuals or entities which take advantage of the public’s generosity for their illegitimate gain. Adopting content analysis, both primary and secondary sources of law were evaluated. These include journal articles, conference proceedings, thesis, books, and chapters in books. The sources are accessible from google scholars and online databases such as Elsevier, HeinOnline, and LexisNexis. The finding of the study discloses that the core obstacles in community-based crowdfunding in Malaysia are threefold namely the problem of trust, the issue of fraud, and the lack of regulation. Thus, this study proposes some recommendations to improve the legal position governing crowdfunding in Malaysia, including setting up a flexible licensing regime and conducting a periodical inspection on the crowdfunding campaigns. This study is significant in highlighting the widespread problems associated with crowdfunding in Malaysia and the way forward which can be adopted by the relevant regulators to enhance the current legal framework. Eventually, it will preserve public confidence and protect society from fraudulent activities by irresponsible individuals or organizations.
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In-Text Citation: (Othman et al., 2021)
To Cite this Article: Othman, R., Ali, Z., Ilias, I. @ I., & Khalid, A. (2021). Overview of Community-Based Crowdfunding in Malaysia: Legal Issues and the Way Forward. International Journal of Academic Research in Business and Social Sciences, 11(11), 1213–1224.
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