E-Wallets
Payments

As a Long Time Fintech Observer, I’m Not a Fan of e-Tunai — Here’s Why

									by Vincent Fong
January 20, 2020
2 comments

In this past couple of days, the e-Tunai programme seems to be all everyone is talking about and understandably so — free money tends to have that effect on people.
In case you’re unfamiliar with the Malaysian scene or if you’ve been living under a rock for the entire month of January, the e-Tunai programme is a RM 30 incentive offered to Malaysians above the age of 18 earning less than RM 100,000. The programme was first announced during the Budget 2020, as a means to boost e-wallet adoption. The government has set aside a budget RM 450 Million for this programme.
Based on the response in the past few days it seems to be working well, people around me who previously had no remote interest in e-wallets were suddenly messaging me to find out about how they too can get the free RM 30. Data from Google seems to support the notion of an increased interest in e-wallets as well. The assigned value for interest in e-wallets in Malaysia jumped from 19 to 100 between December 2019 to January 2020.

Surely, all these things are good for the fintech industry as an observer in this space, I should, in theory, be excited about it.
But I am not, and here’s why.
Bigger fish to fry
I love e-wallets as much as the next guy, having just returned from media trip China that is organised by WeChat Pay’s team, it’s difficult to argue against that kind of convenience that E-Tunai is attempting to drive.
However, just within the financial services space alone, there are more pertinent issues that I think should take priority over the e-wallet adoption. Based on data that we’ve gathered for our latest Malaysia Fintech Report only 52% of Malaysians are insured, to put that into perspective nearly 15 million Malaysians could potentially be financially ruined should they be struck with any serious illnesses.
Malaysians are also not investing or planning for their retirement enough, 41% of Malaysians rely on their EPF savings as their main source retirement funds. Even then Malaysian’s are accumulating enough on their EPF accounts with 68% of them no even being able to achieve the basic minimum savings of RM 240,000.
While I’m all for e-wallet adoption, getting more Malaysian insured and incentivising them to invest for the future takes precedence over e-wallets. These examples are of course hardly the only issues we face in this space, but it should be sufficient to paint a picture of why the money might better be spent fixing other issues within this space.
Using taxpayer money to fund already well-funded companies’ user acquisition
Axiata Digital who owns and operate Boost received a RM 2 Billion investment from Mistui Co Ltd in 2019, TNG Digital is co-owned by Touch ‘n Go and one of the world’s most valuable fintech brand Ant Financial, and SoftBank-backed Grab has a raised a total of over RM 8 billion over 29 rounds.
These are all very well-funded companies who can, by all means, finance their own user acquisition drive. To top it off,  the optics are not great for our government when Grab who strictly speaking is a Singaporean company is using Malaysian taxpayer money to drive its user acquisition.
That is not to say I’m not a fan of these 3 companies or I necessarily think they are at fault, in fact, I’m an avid user of their services. It is by no means their fault that they are able to attract investor interest. As a business, if there are incentives to help drive your business you should not look a gift horse in the mouth.
To the best of my knowledge I’ve not seen any other government elsewhere directly funding the adoption of specific e-wallet brands. It is this writer’s humble opinion that startups and SMEs probably could use this RM 450 million than these 3 well established and well funded companies.
Positive progress but priorities could be better aligned
Don’t get me wrong, I’m not categorically saying that the federal government has an all-around bad policy strategy when it comes to fintech, I’m just saying in this particular instance I’m not a fan of the E-Tunai initiative
There are of course some positive developments, Budget 2020 was the first we are seeing a fintech-friendly budget tabled — or even the first time the word fintech was mentioned.
The increased focus definitely bodes well for the industry, my wish is that as we go along allocation could be channeled to more important areas.

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E-Wallets
Payments

Cyberjaya is The First City to Adopt Malaysia’s National QR Payment Standard DuitNow QR

									by Fintech News Malaysia
January 20, 2020
0 comments

Finance Minister Lim Guan Eng today launched the Cashless Ecosystem for Cyberjaya, a collaboration between Cyberview and PayNet. In a media statement issued to Fintech News Malaysia, Najib Ibrahim, Managing Director of Cyberview shared that Cyberjaya will be the first city to adopt the national payments QR code known as DuitNow QR.
DuitNow QR is part of the Interoperable Credit Transfer Framework ( ICTF ) which mandates that PayNet, as the country’s shared payment infrastructure provider, implement an interoperable and common QR standard for Malaysia.
Peter Schiesser, Group CEO, PayNet revealed that currently, nine banks are already offering DuitNow QR in their mobile banking apps with 23 banks and for major e-wallets expected to implement DuitNow QR in the next 6 months.

The first bank and e-wallet to sign up for DuitNow QR were Public Bank and GrabPay respectively.
Cyberview is confident that with DuitNow QR the number of merchants in Cyberjaya to accept cashless payments will go up. The latest stats from them indicate that over 51% of merchants in Cyberjaya now accept cashless payments

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Luno Announces Partnership With Shopee

Blockchain/Bitcoin

Luno Announces Partnership With Shopee

									by Fintech News Malaysia
January 28, 2020
2 comments

Luno and Shopee announced a new partnership today signaling the first such collaboration between an e-commerce player and a crypto platform in Malaysia. As a result of this collaboration, Malaysians now have access to deals, discounts, and vouchers on Shopee which they can purchase and convert into cryptocurrencies like Bitcoin and Ethereum on the Securities Commission-regulated crypto exchange platform, Luno.
“Being a regulated exchange allows us to explore new ways of expanding access to crypto for users in Malaysia. An innovative approach is to leverage the breadth and depth of e-commerce players like Shopee. We expect this effort to drive massive awareness and adoption, making it easy for users on Shopee to access crypto and begin their investment journey. We certainly look forward to working closely with Shopee on further groundbreaking projects,”
said Aaron Tang, Country Manager of Luno Malaysia.
The London-based company intends to leverage Shopee’s large user base to create awareness and attract new customers by offering a RM 15 Bitcoin voucher at only RM 1. That, along with other attractive vouchers available on Luno’s official store on Shopee, is a decisive step to bring cryptocurrencies into the mainstream.

“One of the key reasons why we, the leading e-commerce platform in Malaysia, are able to stay ahead is because we strive to make our product assortment as wide and accessible to all. In 2019, Shopee enabled the purchase of properties, cars, F&B deals and more on our platform. In January 2020, we are now giving our users the opportunity to try their hands at cryptocurrency through this collaboration with Luno,”
said Kenneth Soh, Head of Shopee Mall, Shopee Malaysia.

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Payments

BigPay Adds India, Nepal and Bangladesh to Its Remittance Service

									by Fintech News Malaysia
January 30, 2020
1 comment

BigPay just added three new corridors to its international remittance service: India, Nepal and Bangladesh. BigPay’s remittance service was first launched in September 2019, with remittance service available to Singapore, Thailand, Indonesia, and the Philippines.
The service enables users to send money directly from Malaysia to bank accounts of the aforementioned corridors at a fixed fee per corridor with no hidden fees or extra charges.
With the addition of these three new corridors, user can now use BigPay to remit money to a total seven different countries.

In their media statement, BigPay stated that in the four months that they have launched they have already processed millions in international transfers.
More countries will soon be available for BigPay users to send money to. The company said it is also working on cash pickups in selected markets.

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What’s Next for GrabPay?

E-Wallets
Payments

What’s Next for GrabPay?

									by Vincent Fong
February 4, 2020
4 comments

In Malaysia, e-wallets are all the rage these days. The Malaysian public’s interest with e-wallets was further accelerated when the government set aside RM 450 Million for the e-Tunai programme, which grants qualifying Malaysians RM 30 in selected e-wallets.
With the constant bombardment of promotions and ubiquity of e-wallet acceptance points especially in urban centers, one might easily think that e-wallets have been around for a long time in Malaysia.
E-wallets in Malaysia are a relatively recent phenomenon, most players including the three big names like Boost, TNG Digital, and GrabPay all received their licenses as recent as 2017.

The e-wallets space in Malaysia is both competitive and capital intensive, with some of its players heavily incentivising user activity with cashbacks and discounts — a strategy that while may prove effective at first, may not be sustainable in the long run, something that the Assistant Governor Bank Negara Malaysia seems to agree with.
Remaining in the e-wallet space is not for the faint-hearted, even players with a strong pedigree like the Digi-backed vcash has dropped out of the race just last year.
We sat down with Ooi Huey Tyng, Managing Director, Head GrabPay for an interview to get a sense of what one of the largest players in Malaysia is doing to navigate this space.
Open Ecosystems
During the early phase of GrabPay, much of the transactions were limited to paying for ride-hailing services, Tyng reflected that GrabPay has come a long way since then, she shared that 50% of GrabPay transactions are now used outside of transport and it has grown over 40% in last 6 months of 2019.
Tyng revealed that for GrabPay’s next phase of growth they will be transitioning their focus from Grab’s own ecosystem to a more open ecosystem play. Besides engaging e-commerce players like Zalora to enable GrabPay as a payment option they are also building APIs to enable interested online players to do the same.
As part of their open ecosystem play, Tyng also revealed that their PayLater service will be made available to their partners, which means very soon online shoppers can opt to pay immediately or at the end of the month for their goods. For now, PayLater is only available for Grab Ride, GrabFood Orders and GrabExpress deliveries.
Payment Cards
As part of its strategy to appeal to a wider segment of customers, Grab has teamed up with Citibank to launch co-branded credit cards in Philippines and Thailand — with Malaysia’s release just around the corner.

Just last year they have also launched their GrabPay Card in partnership with Mastercard. The card is completely numberless and it also comes with the feature of in-app lock card function that is PIN-protected, allowing users to instantly suspend payments for lost cards.
They are looking at launching the same service in Malaysia sometime this year.
Virtual Banking?
Getting a virtual banking license is the natural transition e-wallet operators seeking more revenue streams, Grab with its many digital financial services ranging from lending, insurance, payments and most recently wealth management, it would make sense that they would eye for a virtual banking license in Malaysia.
While Tyng did not specifically say that Grab will apply for the license, she revealed that Grab is definitely keen to consider for a virtual banking license in Malaysia.
However, given that Grab has also entered into a partnership with Singtel in Singapore to bid for the license, it is hardly surprising to anyone that they are also considering the Malaysian market as well.
Tyng did not rule out the possibility of a consortium model in Malaysia.

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Payments

PETRONAS’ Petrol e-Payment Solution Setel Will Soon Be Available Nationwide

									by Fintech News Malaysia
February 6, 2020
0 comments

Setel an e-payment solution that enables drivers to purchase fuel directly from their mobile devices will soon be available at PETRONAS stations nationwide.
First introduced in 2018, was developed to “eradicate customer pain points in refueling. It was initially only available in 40 PETRONAS stations but it has since expanded to be available 700 PETRONAS stations in Malaysia. The company said that it is looking to rapidly expand the service nationwide in the next few weeks.

Iskandar Ezzahuddin
“As of January 2020, Setel recorded over 3 million transactions and has garnered positive responses from our customers in the Klang Valley. We are now ready to offer Setel nationwide and will be introducing exciting new features in the coming months,”
said Iskandar Ezzahuddin, Chief Executive Officer of Setel.

Setel integrates fuel payments, loyalty, retail and the e-commerce experience in one platform. Setel recently introduced Mesra points fuel redemption directly from the mobile application as part of integrating aspects of the refuelling process onto a single platform, offering next level convenience to PETRONAS customers.
Azrul Osman Rani
“At PETRONAS, we strive to be agile and innovative in meeting consumers’ changing needs. In addition to a wider reach, the nationwide expansion is also us pushing our boundaries in delivering meaningful value to our customers,”
said Azrul Osman Rani, Managing Director and Chief Executive Officer of PETRONAS Dagangan Berhad.
“The current features of Setel is just the beginning. Anchored on seamless and frictionless experience, we will be providing the right solutions and partnerships to enrich the customer journey beyond refuelling,”
he added.

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Payments

Touch ‘n Go eWallet Joins the DuitNow Eco-System and Adopts the DuitNow QR Code Standard

									by Fintech News Malaysia
February 10, 2020
3 comments

Touch ‘n Go eWallet will adopt the DuitNow QR, Malaysia’s National QR Standard and become a participant in the DuitNow eco-system, operated by Payments Network Malaysia (PayNet).
DuitNow QR is established under Bank Negara Malaysia’s Interoperable Credit Transfer Framework (ICTF). ICTF mandates that PayNet, as the country’s shared payment infrastructure provider, implement an interoperable and common QR standard for Malaysia.
40 banks in Malaysia are now part of the DuitNow eco-system, of which 9 banks are already offering DuitNow QR in their mobile banking apps, with 38 banks, eWallets and non-bank acquirers expected to implement DuitNow QR over the next 6 to 9 months.

DuitNow QR will foster an efficient, competitive and innovative payment landscape in Malaysia by enabling interoperability, promoting collaborative competition and providing fair and open access to the shared payment infrastructure. Through DuitNow QR, users can make payments from any participating Banks or eWallets’ mobile apps. Merchants would only need to display one QR Code, the DuitNow QR, to accept payments.
Peter Schiesser
“At the moment, eWallet providers are incurring substantial merchant acquiring costs since they are each signing up the same set of merchants for their respective proprietary networks. With DuitNow QR, a merchant needs to sign up with only one bank or eWallet acquirer, and customers of all participating banks and eWallets would be able to make DuitNow QR payments to the merchant using their respective mobile apps,”
said Mr Peter Schiesser, Group Chief Executive Officer of PayNet.
Touch ‘n Go eWallet has been an advocate for financial inclusivity by making it easier and more convenient for Malaysians to go cashless. Since its launch in 2018, Touch ‘n Go eWallet has actively expanded its user and merchant touchpoints across Malaysia, actively reaching out to a broad spectrum of merchants ranging from local grassroot merchants all the way to large retail chains.
Ignatius Ong
“We are thrilled to be expanding Touch ‘n Go eWallet by becoming part of the DuitNow eco-system. As a brand, we constantly strive to make our eWallet accessible at all touchpoints by providing a seamless transaction experience. Our users and merchants are our utmost priority, and we strive to enable a seamless cashless experience for all. We can now proudly say we stand with PayNet as they rally to do the same. Merchants will now be able to run their businesses hassle-free knowing that users can seamlessly transact with their Touch ‘n Go eWallet through the DuitNow National QR Standard,”
said CEO of TNG Digital Sdn Bhd, Mr Ignatius Ong.
Touch ‘n Go eWallet will go live on DuitNow by July 2020 and plans to progressively transition all its merchants to DuitNow QR Code, so that the merchants can collect payments from more than 22 million bank and eWallet account holders in due course.
DuitNow QR is an extension of the DuitNow service launched in December 2018, which allows Bank customers to transfer money instantly and securely on a 24/7 basis at Banks’ Internet or mobile banking channels. DuitNow fund transfers can be directed using the recipients’ mobile numbers, MyKad or business registration numbers.
Touch ‘n Go eWallet users will soon be able to transfer funds instantly using DuitNow between their Touch ‘n Go eWallet and bank accounts as well as other eWallets. Touch ‘n Go eWallet currently has a user base of 9 million with 135,000 merchant acceptance points. Over the last 2 years, Touch ‘n Go eWallet has seen exponential growth and spearheaded cashless transformation by making daily transactions possible with just one tap. With Touch ‘n Go eWallet entry into the DuitNow eco-system, consumers and merchants in Malaysia will reap the benefits of more merchant acceptance points and wider customer reach as the eco-system grows.

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E-Wallets
Payments

KiplePay’s White Labelled E-Wallet is Unlikely the First Approved by BNM as They Claimed

									by Vincent Fong
February 12, 2020
0 comments

There were multiple reports this week that claims KiplePay, a subsidiary of GreenPacket “has become the first fintech player in Malaysia to provide a white-labelled e-wallet solution with Bank Negara Malaysia’s (BNM) approval.”
While I have no doubt that they have received clearance from Bank Negara Malaysia to provide white label e-wallet solutions to the likes of Setel, I’m doubtful that they are the first.
Claiming you’re the first in something is not something uncommon, and most of the time it’s harmless, which is why we would normally just remove the word “first” when we run the story.

However, in the case of KiplePay, claiming that they are the first to be approved would imply all the other white-labelled e-wallet solutions that came before KiplePay’s project with Setel is either illegal or did not receive proper regulatory clearance.
Which is why we felt it is necessary to clarify what is most likely to be misinformation.
Players like FassPay, a subsidiary of Soft Space has gone on record to say that they have 4 customers currently using their white labelled e-wallet solution in 2019 and they have only done so after receiving the proper clearance from Bank Negara Malaysia on February 2019.
Chris Leong, CEO Fasspay further added in a statement to Fintech News Malaysia that,
“What matters most is that any solution we introduce to the market is done only after Bank Negara Malaysia allows us to do so. Every time we onboard new customers with our e-wallet solutions, as we have with our 4 customers, we adhere to stringent guidelines set forth by the regulator, and we keep them updated with our progress every step of the way.
We would like to assure our existing and our prospective customers that every solution we introduce is in compliance to all of Bank Negara Malaysia’s rules and regulations,”
Fintech News Malaysia has also reached out to iPay88 to verify the story and its co-founder Chan Kok Long confirms that they too have white labelled e-wallet solutions in the market that received the proper clearance from Bank Negara Malaysia. Simultaneously we’ve also reached out to Bank Negara Malaysia for an official statement, and this article will be updated accordingly as and when they respond.
While KiplePay’s claims may be inaccurate, I don’t necessarily think it was malicious nor do I fault them — it could be just a genuine case of them not knowing that others have received the same clearance.
However, I do feel as journalists we have a responsibility to verify and fact-check stories before publishing it as is. In this digital age where speed is crucial to a news organisation, one must not forgo accuracy.

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E-Wallets
Payments

Sabah Teams Up with Boost to Launch its Own E-Wallet, Sabah Pay

									by Fintech News Malaysia
February 12, 2020
0 comments

Sabah Credit Corporation on Tuesday launched Sabah Pay in collaboration with Boost. The launch of Sabah Pay is part of the state’s Smart Sabah Initiative, in the said initiative the Sabah government has given Sabah Credit Corporation a mandate to set up the state’s e-wallet solution.
Sabah joins other state governments who have recently launched their own digital payments solution namely Selangor’s CePAT and Sarawak’s Sarawak Pay.
The newly launched e-wallet is developed by Sunline International and it is running on their digital banking technology platform. Founded in 2002, Sunline International is a banking software vendor headquartered in China.

At the time of launch, there are 27 state government related agencies and 28 businesses accepting Sabah Pay. According to their press statement, they are aiming to have 60% of state government related agencies’ collection to be done through Sabah Pay by 2020. They are also eyeing to onboard 100,000 users within the same timeline.
In the coming phases of Sabah Pay, they are looking to introduce features like digital onboarding, virtual account, virtual financing, smart loan, multiple payment channels, e-parking, and e-ticketing.
Image Credit: Borneo Today

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E-Wallets
Payments

Bank Islam Partners KiplePay in Cashless Push for Universities

									by Fintech News Malaysia
February 19, 2020
0 comments

Bank Islam and KiplePay, a wholly-owned subsidiary of Green Packet announced this week that they have teamed up to launch KipleUNI, a programme to drive adoption cashless technologies.
This collaboration integrates the KiplePay app and Bank Islam’s services and enables students to link the credit or debit cards for direct cashless payments within the universities as well as other selected merchants outside the campuses. All e-card transactions via KiplePay app will be facilitated through Bank Islam’s payment gateway service portal.
To-date, KipleUNI programme is live at Universiti Utara Malaysia (UUM) with another 3 – 5 universities coming along in the next few months.

There are 680,000 students in various public universities and more than 200,000 faculty and staff in Malaysia. From this programme, Bank Islam and KiplePay are looking to progressively make KipleUNI programme available to 50% of the campuses.
Mohd Muazzam Mohamed
Mohd Muazzam said,
“Bank Islam is always innovating towards giving added value to our customer across various segments. In our passage to accelerate our digital banking journey, we leveraged on KiplePay’s expertise to provide a platform that enhances customer experience while supporting the Government’s effort in growing the digital economy agenda. KipleUNI programme will be another platform in driving cashless community through universities and student segment. Subsequently, Bank Islam merchants will also benefit from this partnership as the app promotes business growth on both online and offline platform.”
Tan Kay Yen
Echoing on the same sentiment, Tan Kay Yen said,
“As a trusted fintech partner to many, we see it as our responsibilities and commitment to enhance the value of our solutions to the students, administrators and merchants at education hubs, campuses and university towns. Our innovative solutions stem from our continuous learning, on ground tests and understanding the specific needs of our communities. It is through this action that we create a robust and holistic ecosystem that promotes the digital lifestyle for the users through KipleUNI programme.”

KiplePay is an approved Bank Negara Malaysia e-wallet issuer where it operates on two fronts, namely a cashless payment gateway for the business and e-wallet for consumers. Both parties stated that they are looking to introduce more joint initiatives the KipleUNI programme in the future.

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Payments

Singapore’s hoolah Brings its Interest-Free Pay Later Solutions to Malaysia

									by Fintech News Malaysia
February 19, 2020
2 comments

hoolah, a Singapore based company, is bringing their interest-free installment solution to Malaysia. Since their launch in 2018, hoolah has been working with a variety of merchants to allow for consumers to get what they need and want, while paying in 3 monthly installments without any interest or fees.
With over 300 merchants in Singapore, including global brands such as Sennheiser and Skin Inc along with local brands like HipVan, the startup claims to have have delivered an average of 20 – 30% increase in conversion and basket size.
Against the backdrop of these numbers, hoolah is now expanding outside of Singapore and bringing its leading Buy Now, Pay Later (BNPL) solution to merchants across the region with Malaysia as its first new market.

To kick-start the launch in Malaysia, hoolah has partnered with two up and coming fashion technology companies – Novelship and BlinQ. Like hoolah, both companies are using their seed funding to fuel their expansion across Southeast Asia to fulfil their goals of increasing conversion and reducing cart abandonment.
Stuart Thornton
“Malaysia was always a key market for our expansion given the proximity to Singapore, as well as the growth in eCommerce. Both BlinQ and Novelship are fantastic partners and we are very excited to work with them in Malaysia and across the region to help drive more conversion.”
Stuart Thornton, hoolah CEO

Bob Chua
Bob Chua, founder and CEO of BlinQ, commented,
“We are delighted to be partnering with hoolah at this very exciting time in retail. Our users throughout the region consist of the aspiring and affluent end of the spectrum. As a result, we need to ensure a great product offering, matched by the most seamless payment options to cater to their needs.”
Richard Xia, Novelship’s CEO added “hoolah’s interest-free installment solutions enable our users to have sustainable idealism – they can pursue their passion in collecting special edition sneakers without breaking the bank”

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Lending

GHL Teams up with Axiata Digital’s Aspirasi to Provide Micro Lending Services

									by Fintech News Malaysia
February 19, 2020
0 comments

GHL Systems Berhad (GHL) and Aspirasi, a digital financing platform and fintech provider under Axiata Digital have formed a partnership to provide SMEs and micro-entrepreneurs in the country with digital access to GHL’s new financing business.
This news follows their announcement of receiving operating licenses in Malaysia and Thailand to provide lending services.
The collaboration aims to narrow the financial inclusion gap for the underserved community by tapping into Aspirasi’s platform which offers a fully digital and complete financing application journey, covering on-boarding and merchant scoring.
GHL will market its financing solutions to its existing merchant base with collection managed via its merchant settlement process. While the partnership is focused on Malaysia for now, there are plans to expand to other countries in the near future.

Danny Leong
“GHL is very excited to tie up with Aspirasi and by extension, Axiata Digital. Together we have an extensive presence across ASEAN which means further collaboration in the region. GHL’s broad footprint of 138,800 TPA payment touchpoints across ASEAN, coupled with Axiata Digital’s expanding offerings within the digital finance space, will enable us to bridge the payment and credit gap among the financially underserved within the 650 million ASEAN population”,
Mr Danny Leong, Group CEO of GHL stated confidently.
“We are pleased to partner with GHL Systems Berhad, a leading payment service provider. Together, we have a shared vision of simplifying financial access for SMEs and micro-entrepreneurs. By leveraging our digital platform and GHL’s extensive footprint of TPA touchpoints in Malaysia, merchants will be able to enjoy quick and seamless financing to assist them on their dynamic journey of business growth,”
said Sheyantha Abeykoon, Executive Director of Aspirasi.
GHL’s reach of over 101,500 TPA  (Transaction Payment Acquistion) points in Malaysia, gives it an edge with its good grasp of merchant’s e-payment acceptance behaviour. This provides GHL with an advantage to devise an optimum financing plan for its group of merchants.
GHL group’s ASEAN TPA payment touchpoints grew by 20%, from 116,200 in 2018 to 138,800 in 2019, which also translated to a 39% surge in Transaction Payment Value (TPV) of RM 13.9 billion processed during 2019. This strong growth owes much to thriving next generation e-payments, empowering cashless acceptance across its merchant base and the momentum is expected to continue as going cashless becomes more mainstream.
The introduction of financing services, in addition to e-payments, bill & loan collections, and mobile credit top-ups, will enable GHL group to better serve its merchant base and partners in offering an increasingly growing suite of e-services.
GHL group piloted its financing business in Malaysia and its nano-finance lending service in Thailand in fourth quarter 2019 and will pilot its financing operations in the Philippines soon thus expanding its financing business to three ASEAN countries by 2Q 2020.

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Payments

Dapat Vista Partners with Bank Islam and Bank Muamalat to Enable Digital Bail Payment

									by Fintech News Malaysia
February 20, 2020
0 comments

Dapat Vista, Bank Islam, and Bank Mualamalat inked an agreement on Wednesday to launch a digital bail payment solution, eJamin. The solution is said to be the first digital bail payment solution in Malaysia and South East Asia. Dapat Vista is homegrown payment company who is known for launching their government e-payments service, MyPay just last year.
The eJamin solution allows bailors to post bail digitally. Bailors will no longer be required to go through the lengthy and time-consuming process of traveling between the court and the bank to open a surety account. eJamin allows bail payment to be made instantaneously via FPX online banking.
According to their press statement, the solution streamlines a process that used to take four to five hours to 30 minutes.

Bailors are required to complete an electronic form on eJamin with both their required personal details and that of the Accused’s. Once payment is made through the FPX online interchange, bail money is automatically routed to the designated Bank Islam or Bank Muamalat accounts. At the close of the case, bail money will be refunded to bailor’s bank account via eJamin with what they claim to be a “reasonably short time”
The eJamin service is available the following courts; Petaling Jaya, Kuala Lumpur, Shah Alam, Klang, Ampang, Selayang, Kajang, and Seremban.
Plans are to fully deploy at Courts throughout Malaysia by the end of 2020.
Signing of Collaboration Agreements between DAPAT Vista, Bank Islam Malaysia and Bank Muamalat Malaysia

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Crowdfunding

Stranger Pictures Launches ASEAN’s First Film Equity Crowdfunding Campaign on Fundedbyme

									by Sponsored Post
February 21, 2020
0 comments

The first reward & equity-based film crowdfunding is officially launched in Malaysia; breaking the conventional film production and distribution practices that go unquestioned for too long. This fine blend between finance and entertainment industry is opening up a new frontier of participation and investment opportunities.
Malaysia is the first country in the ASEAN region to regulate equity crowdfunding to democratize finance and promote innovation. With a regulated framework for equity crowdfunding in place since 2015, the Securities Commission (SC) Malaysia has enabled early-stage financing for start-up entrepreneurs. While the SC is advocating the benefits of digital finance, the local film industry is capitalising on this important milestone by offering an alternative film investment opportunity to the public and enables local films to expand to the global financial market.
Stranger Pictures Sdn Bhd is going unconventional by being the pioneer movie production & distribution company that involves movie enthusiasts around the world, offering local and global investors an opportunity to capitalize on the potential of the film industry.

Malaysia film makers face challenges like insufficient fund, low publicity and a competitive environment. The lack of well-constructed marketing budgets causes many quality local films couldn’t make it to the cinemas. Equity crowdfunding enables the film production industry to raise capital and allows everyone to be involved and become part of the company. Word-of-mouth publicity plays an essential role in marketing strategy; it amplifies public exposures, attracting media coverage and in return achieving higher box office.
Yim Wai Lup
“When we talk about the commercialization of film art, the expected outcome does not stop merely at catering the film to the audiences’ taste to achieve a high box office revenue, we aim to introduce the artistic value of films to the public.”
said Yim Wai Lup, Executive Producer of Stranger Pictures.
Bronson Wee
“Realizing the artistic value is never easy, but our core team is a fine blend of talents with art & financial background, therefore we can produce something that is artistically inclined and financially feasible. Our vision is to transform the film and entertainment industry with a decentralised ecosystem.”
said Bronson Wee, Executive Director of Stranger Pictures.
Stranger Pictures is launching the ‘First Reward & Equity Based Film Crowdfunding’ on a regulated and licensed ECF Platform, FundedByMe. Investor will own part of the company and get rights to the cashflow streams and box office revenue of all future movies produced and distributed by Stranger Pictures. There is a still a huge potential in the Malaysian film industry. The collaboration between art, finance and technology is projected to certainly increase the value of Malaysia film market; locally and internationally – by Stranger Pictures.
For more details about the equity crowdfunding campaign on FundedByMe

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Regtech/Regulation

Securities Commission and Bursa Malaysia Sets up a Regulatory Subsidiary

									by Fintech News Malaysia
February 26, 2020
0 comments

The Securities Commission Malaysia (“SC”) and Bursa Malaysia Berhad (“Bursa Malaysia”)  announced Tuesday that Bursa Malaysia will establish a wholly-owned subsidiary (“Bursa RegSub”) to assume the regulatory functions currently undertaken by Bursa Malaysia.
SC’s chairman, Datuk Syed Zaid Albar shared in a media statement that SC and Bursa Malaysia have been working closely to further enhance the governance structure of the exchange by segregating its regulatory functions from its commercial objectives. In doing so they aim to address the perception of potential conflicts between these two roles.
Datuk Syed Zaid Albar
“ The Bursa RegSub will be governed by a board of directors, a majority of whom will be independent of Bursa Malaysia, and the Chairman of Bursa RegSub will be appointed from amongst the independent board members.
In this regard, Bursa Malaysia remains accountable to the SC to ensure that Bursa RegSub is allocated sufficient financial and human resources to enable it to discharge its regulatory functions effectively. The SC will continue to regulate Bursa Malaysia directly as a listed company as well as a market operator while maintaining oversight of the regulatory functions performed by Bursa RegSub,”
said Datuk Syed Zaid Albar, Chairman of the SC.

Shireen Ann Zaharah Muhiudeen
“Malaysia’s capital market is globally recognised as forward-looking, well-regulated and ranks highly in investor protection. The Exchange will continue to work with all stakeholders in our effort towards building a vibrant and competitive marketplace,”
said Datuk Shireen Ann Zaharah Muhiudeen, Chairman of Bursa Malaysia.
The establishment of Bursa RegSub will put Malaysia’s stock market regulatory framework in line with jurisdictions such as Singapore, Japan and Brazil.
The SC and Bursa Malaysia will review and finalise the implementation details to ensure a seamless transition of the exchange’s regulatory function to the subsidiary, which is expected to be operational by the end of 2020.

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E-Wallets
Payments

Merchantrade Receives BNM Approval to Increase E-Wallet Limit Size to RM 20,000

									by Fintech News Malaysia
February 26, 2020
2 comments

Merchantrade announced today that their multicurrency e-wallet has obtained regulatory approval to increased its wallet size from RM 10,000 to RM 20,000.
Their VISA enabled multicurrency e-wallet was launched in January 2018, and it is primarily used travellers to exchange foreign currency and spend said currency using the VISA card that comes with the e-wallet.
In comparison, its closest competitor BigPay operates at the wallet-size limit of RM 10,000.

Merchantrade said that the new wallet size is expected to take effect before the end of Q2 2020.
Merchantrade Founder and Managing Director Ramasamy K Veeran said the increase is yet another big step in their efforts towards digitalisation from cash to cashless.
“We’ve seen a pattern in the way our customers use our e-wallet, they tend to convert and store for their travels and this will certainly give them more convenience and flexibility,” he added.

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Blockchain/Bitcoin
Crowdfunding

After Leading the Equity Crowdfunding Market for 3 Years, pitchIN Sets its Sights on IEO

									by Vincent Fong
February 27, 2020
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pitchIN revealed today in its annual Equity Crowdfunding Report that the company continues to lead the equity crowdfunding market for the third consecutive year with 72% market share of total funds raised and 53.8% of campaigns in 2019.
2019 proved to be a positive year for the platform as they see 67% YOY (Year-on-Year) growth with RM 22.7 Million raised. They also highlighted several milestones which include breaking the record of the highest funds raised with Oxwhite raising over RM 5 million in 7 days.
Sam Shafie, its CEO and Co-founder remarked that the growing number of companies raising funds through equity crowdfunding points towards this method gaining mainstream appeal and that it is no longer considered an alternative towards raising money through VCs.

For 2020, the company is targetting to raise RM 30 million across 24 campaigns, they further added that the platform already have 43 companies in their pipeline looking to raise funds with pitchIN.
The company also announced that they are lookin at applying for regulatory approval from Securities Commission Malaysia to operate an Initial Exchange Offering platform. The framework for IEO was released in January 2019, under this new framework companies will able to issue digital tokens through approved IEO platforms to raise funds.
During the same event, Sam also revealed that pitchIN will be raising funds through equity crowdfunding on their own platform in the near future.

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E-Wallets
Insurtech

Boost Offers Malaysians Free Insurance Coverage For COVID-19

									by Fintech News Malaysia
February 28, 2020
0 comments

Boost together with Prudential announced a joint initiative to help protect Malaysians by providing free COVID-19 coverage exclusive to Boost users.
Between 24 February 2020 to 30 April 2020, verified premium Boost users who are not existing Prudential and Prudential BSN Takaful customers will be eligible to enrol for Group Term Life Insurance coverage worth RM5,000 for free if diagnosed at one of the 26 hospitals designated by the Ministry of Health. To enrol for the free Prudential Life Insurance with special COVID-19 coverage, verified premium users simply need to tap on the ‘COVID-19 Coverage’ tile in the Boost app to opt-in.
The insurance coverage is applicable to those aged between 18 and 55 years old, limited to the first 200,000 successful enrolments and ONE (1) enrolment per user. Boost users will receive the status of the enrolment confirmation in-app within three (3) working days from the date of application.

Featured image credit: Unsplash

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Blockchain/Bitcoin
Digital Transformation

Why TM ONE is Going Big on Blockchain to Eliminate Passwords

									by Vincent Fong
March 19, 2020
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Early this year, the business solutions arm of Telekom Malaysia Berhad (TM), TM ONE announced a collaboration with Korean-based blockchain firm, FNS Value Co. Limited (FSNV). The agreement between the two parties will position TM ONE as the sole distributor for its FNSV Blockchain Secure Authentication (BSA) in Malaysia and Indonesia.
According to FNSV, BSA is the world’s first patented solution based on blockchain technology that does not require a password for authentication and yet is very simple to use, extremely secure, and impenetrable immutable application.
News of major corporations like TM ONE aggressively pushing for blockchain solutions here in Malaysia marks a major milestone for the blockchain scene.

This story seems to have largely flown under the radar with news relating to 5G and Industrial Revolution 4.0 (IR4.0) dominating the headlines, which is why we sat down with Executive Vice President / Chief Executive Officer of TM ONE, Ahmad Taufek Omar to get a sense of the company’s vision for blockchain security in Malaysia.
The Case for the Death of Passwords
Getting rid of traditional login access via passwords makes a great deal of sense, they are a relic of an earlier technological era and a major inconvenience considering that the current digital lifestyle demands users to have numerous online accounts for various purposes. Having to deal with that many accounts, it is no surprise then up to 51% of users reuse their password.
When you combine the inconvenience alongside the fact that some studies have alluded to passwords being the root cause of 80% of data breaches, we can start to piece together the business case for Banking, Financial services and Insurance (BFSIs) — especially since it is far more crucial for them as they are dealing with money.
Touting its advantages, Taufek strongly believes that blockchain authentication is well designed to solve the password issues and transform to a more secured and advanced login method.
According to him, the main advantage of BSA is the automation of control over transactions security with fast, secure authentication and verification technology. BSA prevents fraud and abuse of the existing ID and Password based authentication systems and solve many other identity problems such as the user credential attack and hijacking.
Explaining why he thinks that is the case, he further added, “A blockchain-enabled solution can simplify the data objects using various algorithms, each offering a different level of anonymity to its users, which non-blockchain solution cannot process in few seconds. These include authenticating a real or a clone mobile device (what you have), authenticating your device and user profile (who you are) and multifactor authentication (what you know).
Non-blockchain solution is unable to store and maintain data protection on multiple devices. BSA implements its data structure in the form of cryptography that shall be immutable, irreversible and tamper-proof that is not present within non-blockchain solution.”
Will Banks Be Receptive towards Blockchain-Based Authentication?
Taufek is confident that the BFSI industry will eventually adopt blockchain-based secure authentication product to cater to the digital banking needs.
He revealed that with solution BFSIs could potentially enjoy cost savings of around 50-60% in security management and operations costs. He shared that the savings would derive from the reduction of password management systems, operations and support services related to backup and recovery, alongside potentially eliminating the need for One-Time Passwords (OTPs) sent via SMS altogether.
What he said seems to be in line with the think of FIDO Alliance, an organisation that is formed to progress the world beyond password with members like Google and Amazon, where they suggested that the average cost password resets is around US$ 70.
Taufek believes that in an age where banks and fintechs alike are all fighting to capture the digitally savvy market, the industry should use every tool at their disposal to delight their customers — and that includes thinking of security as a feature instead of a necessary evil.
Using TM ONE BSA solution, Taufek said that consumers will no longer have to remember their passwords to perform banking transactions. This is compared to right now, where biometrics in most banking apps only allow for customers to do simple functions like check their account balance.
He believes that this is an appealing digital value proposition that banks would likely to invest in, and he looks forward to position TM ONE as the preferred platform for the BFSI sector when it comes to blockchain-based secure authentication. Moving forward, Taufek is also looking to extend this solution to Indonesia and other ASEAN markets.

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Blockchain/Bitcoin

Luno Launches Ripple (XRP) Trading in Malaysia

									by Fintech News Malaysia
March 2, 2020
2 comments

Luno, a digital asset exchange license by the Securities Commission Malaysia announced today the that Ripple (XRP) will be made available on their cryptocurrency exchange platform starting tomorrow, 3rd March 2020.
In Malaysia, the platform currently only allows the trade of Bitcoin (BTC) and Ethereum (ETH), citing the growing demand Ripple, Luno said it decided to introduce this digital asset to the platform.
Ripple (XRP) the third-largest digital asset with a current market value of US$12.5 billion.

Marcus Swanepoel
Marcus Swanepoel, Luno CEO, commented:
“We have always limited the number of coins we offer, only listing digital currencies which have liquidity, are secure and have the utility which will benefit our clients. XRP demonstrates the benefits that blockchain based assets can offer. Year 2020 looks as though it will be another very important year for the sector as more and more people use digital coins as part of the day-to-day finances.”

Ripple was launched in 2012 and is designed to facilitate cost-free cross-border transactions. In Malaysia, both MoneyMatch and CIMB use Ripple to power some of its remittance corridors.
“Ripple is a perfect fit with Luno and the other digital assets we offer as it is the first digital currency to be adopted by mainstream financial institutions. Offering Ripple on the Luno exchange has potential benefits for thousands of Luno users, especially those in developing markets, who rely on cryptocurrencies to handle money into and out of their businesses.”
adds Marcus.
To celebrate the introduction of this important coin to the Luno exchange, all users will be able to trade with a reduced fee for the first 30 days of XRP.

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Lending

Genting Ventures Invests in hoolah’s Series A Round Shortly After its Entry into Malaysia

									by Fintech News Malaysia
March 5, 2020
0 comments

hoolah, a Singapore based company, has finalized a commitment for an eight-figure Series A investment round, led by Allectus – a VC, part of the $30bn PE firm ICM, who are focused on disruptive technology companies.
Joining the round are Singapore based iGlobe Ventures, who participated in hoolah’s seed round, and a variety of newcomers, including Genting Ventures, Max Bittner, the former group CEO of Lazada and Tim Neville, the CEO of FNZ – a global FinTech firm responsible for over 330 Billion pounds of assets under administration.
Josie Lai
“We were delighted to invest in hoolah. The team has delivered some excellent outcomes within a short period of time. The business model and its target audience is potentially great for our own business and we look forward to forming a strong partnership and contributing to hoolah’s future growth”
Josie Lai, Genting Ventures

The raise allows hoolah to double down on their recently announced launch in Malaysia and fuel further expansion. In addition, as over 90% of retail still occurs in a physical store, the core investment focus is to enable the team to build an omnichannel solution – enabling customers to shop online and in-store.

Stuart Thornton
“This marks a continuation of our plan and vision that we had when we started.We will continue to focus on enabling our omnichannel solution into new markets, and expanding into new verticals where consumers will enjoy using hoolah to responsibly afford the things they want or need.”
Stuart Thornton, hoolah CEO

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Digital Transformation

What Malaysia Can Learn from China in Battling COVID-19 Using Digital Technologies

									by Fintech News Malaysia
March 20, 2020
1 comment

The novel coronavirus, now known as Covid-19, was first discovered in the city of Wuhan, China, in December 2019. In the short span of three months, it has spread like wildfire. Concerned by the alarming levels of spread and severity, the World Health Organization (WHO) has declared Covid-19 as a pandemic.
In Malaysia, the country’s first recorded case was in January and the number has recently placed it as the most affected country in South East Asia. As a result, the government has implemented a nationwide movement control order that limits public movements as an effort to curb the spread of Covid-19 beginning 18 March until 31 March 2020.

Living amidst an outbreak is understandably difficult. Fortunately, technology has come a long way in allowing us to better manage and mitigate the far-reaching and potentially devastating impact of Covid-19. China’s experience in combatting the virus while enabling its people to lead daily life close to normal has particularly gained the world’s attention, thanks to the country’s massive adoption of digital technology in various sectors. From blockchain, to robotics, to the humble QR code, here we look at some of the best solutions from China that’s worth learning from.
Blockchain
When news of the novel virus hit, support came pouring in for the front-line medical workers in China’s Hubei Province in the form of donation for face masks, medical materials, and cash that they badly need. However, criticisms were soon raised on the poor distribution of resources. To address this, start-up Hyperchain and China Xiong’an Group created Shanzong, a blockchain-based donation online tracking platform that tracked the donations, distribution methods and how it was matched to areas of need.
With over 80 million cases and 3,000 deaths in China, online mutual aid platform like Ant Financial’s Xiang Hu Bao has also relied on blockchain technology to fast track medical and insurance claims payouts after adding Covid-19 as a critical illness.
To help businesses deal with potential financial constraints during this epidemic, Duo-Chain, a blockchain-powered supply chain finance platform by Ant Financial is also helping many small and medium suppliers (SMEs) to apply loans from banks with the companies’ receivables from large enterprises.
In the Gansu Province, Ant Financial launched a blockchain-powered online bid opening system, enabling SMEs to participate in contactless bidding remotely during the Covid-19 outbreak. Blockchain technology ensures materials and processes from the bid openings are temper proof, therefore guaranteeing that the contactless bidding participation is transparent and trustworthy.
Artificial Intelligence
With its ability to learn quickly, AI is being used in China to fight the virus on all fronts. Alibaba’s research institute Damo Academy, for instance, has developed AI-powered diagnosis system that promises to detect new coronavirus cases via computerised tomography scans. Using sample data from more than 5,000 confirmed cases, the new system could identify differences in CT scans between patients infected with the novel virus and those with ordinary viral pneumonia with an accuracy of up to 96%.
In subways, train stations, airports, and social service centers, automated surveillance that could monitor, track and identify people with high temperatures has been deployed to find and control potential risks and to assist with necessary actions. Megvii Technology for example has a system that could test 300 people in a minute, while SenseTime’s version could identify those without face masks.
To reduce virus transmission through direct contact in public places with large traffic such as property communities, hospitals and railway stations, Sugr Technology has developed a voice-controlled non-contact electrical switch, called “sesame switch”, which could sense and recognise voice sensitively and voice-control operation on switches even from a long distance.
On the medical front, Shanghai Public Health Clinical Center (SPHCC) has collaborated with Yitu Healthcare, a Shanghai-based AI startup, to launch it launched an Intelligent Evaluation System of Chest CT for COVID-19 that accurately quantifies and grades the severity of various pneumonia diseases to help doctors make faster clinical evaluation and prognosis.
Robots and Drones
As people observe social distancing, the use of robots and drones to replace close human contact mitigate the spread of Covid-19 has gained traction. Service robots by Keenon Robotics Co for example is now used in several Chinese hospitals dealing with Covid-19. These robots are deployed to deliver food, medicines and goods to isolation wards after receiving directions from remote operators. Similarly, meal-delivery robots by Shenzhen’s Pudu Technology has been installed in more than 40 hospitals around the country to help medical staff autonomously deliver meals to patients.
In Wuhan, a mobile CT imaging vehicle from Ping An Health Inspection Center was used to help people diagnose Covid-19 from outside the hospital. The vehicle became the first mobile means that is equipped with full body CT machine, intelligent imaging cloud system and a 5G communications module.
In the air space, Chinese drone maker, DJI, repurposed its agricultural drones to spray disinfectant in potentially affected areas, while thermal cameras were used to monitor body temperature so medical staff can identify new potential cases. The company also fitted drones with loudspeakers to help disperse public gatherings in crowded places and flew banners advising people how to learn more about precautions. Elsewhere, MicroMultiCopter, deployed its drones to transport medical samples and conduct thermal imaging.
QR Codes
As China eases its lockdown order, administrators in more than 200 cities across China have launched a temporary health code services via Alipay mini app, in addition to other platforms such as WeChat and dedicated web portals run by epidemic mitigation authorities, to keep the virus from spreading.
The service assigns a QR code in one of the three colors, red, yellow and green to indicate the person’s infection risk levels. To pass manned checkpoints at airports and train satiations, city administrators require residents to show their QR codes. Those with a green code can move freely, while a yellow and red person would need to remain in quarantine.
Technology is the way forward
As countries around the world grapple with Covid-19, the technological and socioeconomic measures implemented in China may be instructive for other countries including Malaysia that are struggling to contain the virus.
These are the lessons we could learn on the importance of preparedness to prevent and control infectious disease outbreak. As new technologies and innovations are introduced in this environment, we look to governments, companies and people to play an active role in shaping future frameworks to modernize disease control and prevention in our country and around the world.
Featured image credit: Unsplash

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Payments

Boost’s Tabung COVID-19 Enables Malaysians to Donate to Frontliners Using Their E-Wallet

									by Fintech News Malaysia
March 27, 2020
1 comment

Homegrown e-wallet Boost today announced the introduction of Tabung COVID-19 by Boost, a donation fund to help ease the burden of those directly impacted by the coronavirus pandemic in Malaysia.
This news follows the group’s launch of RM 150 Million fund to aid Micro SMEs impacted by COVID-19
Mohd Khairil Abdullah, CEO of Boost shared that the Tabung COVID-19 by Boost was created so Malaysians can easily channel their support through their e-wallets where Boost would then deploy the funds to the appropriate beneficiaries fighting the deadly virus.

Mohd Khairil Abdullah
“There are many unsung heroes in the medical profession who are working tirelessly to put our needs ahead of theirs, and in the midst of this battle to prevent the spread of COVID-19, there are families who fall casualty to the coronavirus. Everyday poses new challenges for everyone and we encourage Malaysians to get involved and join us in the effort to support and assist our frontliners who are keeping us safe as well as families of victims through this fund. No amount is too small to give as we believe little gestures make a big difference,”
said Khairil.

Through Tabung COVID-19 by Boost, the contributions collected will bring much needed aid to the country’s healthcare ecosystem during this crisis. All funds collected will be channeled directly to the Ministry of Health’s (MOH) recently established special COVID-19 fund and various NGOs actively looking after communities directly affected by the COVID-19 pandemic.
All funds received from now until 31 March 2020 will be channeled to MOH, while funds received starting 1 April to 30 April 2020 will be distributed between MOH and relevant NGOs. The funds given to MOH will help the Ministry purchase medical equipment, medicines, reagents, disposable items, and other medical necessities.
The Boost COVID-19 fund is the first of the five initiatives under the #BoostGotYou campaign. Now with the extended MCO period, Boost says that it is determined to drive more innovative solutions through its e-wallet that will help make staying at home comfortable for the duration of the MCO.

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WealthTech

Saxo Markets Launches Malaysian Equities for Investors

									by Fintech News Malaysia
March 30, 2020
0 comments

Saxo Markets, a fintech focused on multi-asset trading and investment, today announces the launch of Malaysian equities on Saxo platforms via Bursa Malaysia. With this made available, Saxo clients can now access over 400 Malaysian stocks and ETFs for online trading, across sectors such as technology, electrical and electronics (E&E), and commodities, according to their media statement.
They further added that, Saxo clients can benefit from even greater choices when they trade and invest with Saxo. With the addition of Bursa Malaysia, Saxo expands its already broad range of products, now covering 37 global exchanges and over 40,000 products. They claim that this makes Saxo one of the best in the market when it comes to unparalleled access to global capital markets online. In addition, the Malaysian market can be traded from any account and currency, and Saxo also offers Malaysian Ringgit funding for people with a Malaysian Ringgit bank account to trade Malaysian equities and ETFs.
Adam Reynolds
“We are incredibly excited to be able to provide our clients even more choice on our platform now through the Malaysian equities. Clients can continue to enjoy competitive rates, from 0.20% commission, minimum RM 50 for Classic clients, which is extremely attractive compared to other major players. At the same time, clients in Singapore looking for overseas exposure will now have easy access to a popular international market,”
Adam Reynolds, CEO Asia Pacific, Saxo Markets, said.

Featured image: Saxo Group Headquarters

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Insurtech

foodpanda Partners with Insurtech Startup PolicyStreet to Provide Protection for Riders

									by Fintech News Malaysia
March 30, 2020
2 comments

Amid the outbreak of COVID-19 in Malaysia, foodpanda has partnered with insurrtech PolicyStreet to provide additional coverage for  to provide riders with additional financial support totalling to approximately RM200,000.
This means that, any delivery partner who tests positive for the virus will receive an additional RM1,000 from this initiative. And, should anything untoward happen, a death benefit of RM5,000 will also be paid out to the next of kin upon the death of a delivery partner from COVID-19.
This follows their earlier initiative to provided financial support to delivery partners impacted by COVID-19. Under the financial assistance measures rolled out by the Company, foodpanda will provide RM1,000 to any delivery partner who tests positive for COVID-19 and RM300 to any delivery partner who is quarantined due to the virus.

Shubham Saran
Shubham Saran, Head of Logistics for foodpanda, explains
“We are grateful to have our insurance partner, PolicyStreet, to join efforts in ensuring that the welfare of our frontliners are protected. Our delivery partners’ safety and health will always come first. We are looking into providing more materials for our delivery partners and also have contingencies in place, should they be needed. We are committed to bringing the best to our delivery partners – and want to ensure a healthy and successful ride for all.”
Yen Ming Lee
“We are honoured to be the insurance partner for foodpanda in this challenging time and also delighted to have been able to offer additional protection against COVID-19 for all foodpanda delivery partners,”
said Yen Ming Lee, Chief Executive Officer of PolicyStreet

Featured image credit: FoodPanda

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Payments

GHL Launches Service to Help Brick & Mortar Businesses Get Online in 3 Days

									by Fintech News Malaysia
April 1, 2020
0 comments

GHL Systems Berhad (GHL) and its online payments arm, GHL ePayments Sdn Bhd (eGHL), announced the launch of a brand new service to help physical businesses and shops get online and e-commerce ready in 3 days. The GHL group said that it is cognizant that daily business operations for many have been adversely affected during the COVID-19 epidemic, and hence is doing its part in helping SME businesses stay open, 24/7.
eGHL SWIFT is a new offering for businesses, especially those who are traditionally based in a physical shop to move online, and to remain open. eGHL SWIFT is said to be a complete end to end e-commerce system which encompasses an online store with integrated delivery and online payments.
As part of their efforts to help SMEs combat COVID-19, GHL and its partners are offering special zero set up fees and 3 month free subscription package to help these businesses get online in just 3 days. eGHL SWIFT has been launched today in Malaysia and Thailand and is expected to commence offering this in the Philippines and Indonesia next week.

Danny Leong
GHL’s group CEO, Danny Leong said
“As an e-payments company, we are front row witnesses to how badly businesses have been affected by COVID 19 and the resulting governments’ ruling on restricted movements. We believe these restrictions are completely necessary to help flatten the curve and to stop further COVID 19 infections. Hence, for the businesses, if your customers can’t travel to you, let GHL help bring consumers to you through our online eGHL SWIFT initiative.”

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Crowdfunding

MDEC Teams up with Crowdfunding Platforms to Raise Funds for COVID-19 Frontliners

									by Fintech News Malaysia
April 1, 2020
1 comment

While most Malaysians are practising social distancing and working from home due to the COVID-19 outbreak, our healthcare frontliners are braving risks to their health by battling against the COVID-19 virus to safe lives. These heroes are making personal sacrifices to serve our fellow Malaysians during a very difficult time.
Malaysia Digital Economy Corporation (MDEC), as part of its Community Responsibility programme, has taken the lead to convene and drive the digital crowdfunding platforms to raise funds for our frontliners to protect themselves against the spread and impact of the pandemic.
The participating crowdfunding platforms include Global Sadaqah, pitchIN and SimplyGiving .

The funds will be channeled to IMARET, a reliable and certified non-profit organisation (NGO) that conforms to MKN20 protocol to distribute the items to hospitals and ‘Klinik Kesihatan’ nationwide.
These pandemic relief supplies range from 200,000 units of PPE/ICU suits (sterile protective coverall); 2 million units of 3-ply face masks; 100,000 units of face visors; 20,000 units of space suits; food and general supplies; and other types of required medical equipments.
Surina Shukri
According to MDEC’s Chief Executive Officer Surina Shukri, as the number of cases rises, so does the demand for medical gears and protective equipment.
“While they are generally referred to as frontliners, our medical and health professionals are actually the last line of defence to stop the spread of the virus and providing professional care for the infected to recover. We must do whatever we can to contribute and continue to support our medical and health professionals to save lives by supplying essential protective equipment that will enable them to protect themselves while carrying out their daily duties,”
she said adding that this in addition to what MDEC has raised from its employees’ generous contribution.
“This announcement is an extension of our #DigitalVsCovid Movement which is supported strongly by the Ministry of Multimedia and Communications Malaysia to continue to help SMEs and the local community through various initiatives that can assist to lessen the socio-economic impact due to the spread of the virus.
To donate to the #DigitalVsCovid Donation Drive, please go to the respective links: Global Sadaqah, pitchIN and SimplyGiving.
Image Credit: Datuk Dr Noor Hisham Abdullah

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Blockchain/Bitcoin

SINEGY Receives Full Approval from Securities Commission to Operate a Crypto Exchange

									by Fintech News Malaysia
April 1, 2020
1 comment

SINEGY announced today that they have been granted full approval by the Securities Commission Malaysia to operate its Digital Asset Exchange (DAX) platform in Malaysia. SINEGY is a homegrown crypto exchange based out of Penang, and they were also previously included in our list of top 20 fintechs in Malaysia.
This announcement follows their initial conditional approval granted to SINEGY as a Recognised Market Operator (“RMO”) announced on the 4th June 2019.
As part of the Company’s relaunch efforts, they will be introducing a brand-new corporate identity including Marketplace, the DAX platform which allows for the trading of Bitcoin and Ether against the Malaysian Ringgit.

Marketplace will go-live from today. Existing clients will be able to login and experience a new trading platform, while new clients are able to submit their details for personal and corporate account registrations.
SINEGY is the second to announce that their platform has gone live with regulator approval following Luno who received its approval in October 2019

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Lending

Funding Societies Offers SMEs Deferments to Help Ease Cash Flow Challenges

									by Fintech News Malaysia
April 3, 2020
0 comments

Funding Societies, P2P financing platform, is stepping up efforts by offering deferment or rescheduling options to help tide small and medium-sized enterprises (SMEs) over as they face challenges brought on by the coronavirus (COVID-19) outbreak.
Following first quarter of 2020, the outbreak has already caused a further economic challenge, placing additional pressure on companies that were already faced with an uncertain business outlook. Among these businesses, SMEs especially are the most vulnerable as they struggle in managing their cash flow, inventory and distribution of goods and services during this trying time.
The customized deferment or rescheduling option will provide cash flow relief to SMEs to sustain their businesses and, in turn, safeguard jobs, particularly in adversely affected sectors including offline-focused retailers, wholesale traders and manufacturers involved in imports and exports, construction of new projects, and tourism and hospitality.

Wong Kah Meng, Co-founder and Chief Executive Officer of Funding Societies Malaysia, said,
Wong Kah Meng
“As we are all fully aware, SMEs are the backbone of our country, contributing close to 40% of the nation’s GDP and 66% of total employment. However, they are also the most vulnerable to a volatile economic environment, particularly amid this coronavirus ‘blackswan’ event that we are experiencing at the moment. On the other hand, we are also compelled to protect the best interests of our investors who, together with us, have been supporting these SMEs.”
“We foresee slower economic activity in coming months and hence, an increase in repayment deferment requests from SMEs. On this note, we have been actively engaging with affected SMEs to understand how their businesses have been impacted in the current circumstances and implications on their repayment capacity in the near term. From there, we will propose deferment or rescheduling options to these impacted SMEs to help them tide through this challenging period. Through this, we strive towards a win-win proposition for our SMEs and investors as it provides an opportunity for SMEs to recover and consequently continue to make repayments to investors,”
added Wong.
Simultaneously, the platform has also been actively engaging with the Securities Commission and government agencies to identify potential approaches to support impacted SMEs and investors. Given the sudden and wide-reaching implications on business activity, government support and funding are critical to ensure that SMEs are able to tide through these times. As P2P financing platforms focus on serving micro and small SMEs, which are most impacted and the majority of which do not have existing financing from banks, P2P financing platforms are the most effective channel through which the government can reach out to and support these SMEs, consistent with the sentiment across the FinTech industry globally.
“Nevertheless, we are hopeful that this ‘blackswan’ event would serve as a catalyst to spur the next wave of digitalisation of businesses in Malaysia as well as the emergence of new digital business models, which directly will benefit the P2P financing industry given its digital focus,”
Wong concluded.
As of March, approximately 10% of Funding Societies’ SME clients have requested for rescheduling of their repayments, and the figure is expected to increase over the coming weeks, especially if the Movement Control Order (MCO) persists. As such, the platform continues to closely monitor any developments that could further impact their SMEs and investors and offer help in any way possible.

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WealthTech

Robo Advisor MYTHEO Waives Management Fees

									by Vincent Fong
April 6, 2020
2 comments

MYTHEO a robo-advisor regulated by the Securities Commission Malaysia issued a statement assuring investors their business remains capable of serving customers and that they have sound business continuity practices in place.
The robo-advisor further added that their processes are highly digitalised from front, middle to back offices and they do not anticipate service disruptions.
He advises investors to not feel overwhelmed by fear and anxiety, instead, he urges investors to look at this as a good opportunity for them to get their investment strategy in check.

Ronnie said in his statement,
“Start by setting aside your required emergency funds. Then, leverage on your excess fund and plan out a long-term investment goal. Practice dollar-cost averaging by starting small and invest gradually with a fixed amount regularly. Also, ensure your investment is well diversified. Time in the market is more important than timing the market.”

In the same statement, Ronnie also announced that they will be waiving 3 months of management fees effective 1st April 2020 for existing clients as a gesture of appreciation. He reassured investors that MYTHEO adopts a disciplined investment methodology with diverse assets supported portfolio rebalancing and optimisation driven by smart innovation and complemented with a competent team.

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Crowdfunding
Insurtech

With Insurtech Demand Surging PolicyStreet Raises Funds Through Equity Crowdfunding

									by Fintech News Malaysia
April 8, 2020
1 comment

Despite the gloomy climate brought on by the COVID-19 outbreak, insurtech startup PolicyStreet is looking to fundraise through Equity Crowdfunding via pitchIN. In their statement, PolicyStreet shared that the insurance sector is seeing a “buzz of activities and has a positive outlook” and that it has ” heightened sense of urgency to protect their lives and health” for more people
PolicyStreet is the only homegrown insurtech awarded the Financial Adviser and Islamic Financial Adviser approval by Bank Negara Malaysia, which has enabled them to work with over 34 insurance and takaful providers in Malaysia and offer more than 1,000 products.
Last year alone, PolicyStreet has recorded a 16x y-o-y growth in revenue (audited) to RM5.3 million and sold more than 32,000 policies, with a 11x growth y-o-y. As of January 2020, the firm has served more than 225,000 customers and transacted more than RM3.8 billion in terms of sum assured.

Since the start of the pre-live investment on 3 April 2020, PolicyStreet has received commitments of over RM1.9 million from board members of GLCs, senior corporate professionals and angel investors. The amount has exceeded its minimum target and the ECF campaign will go on till RM3 million. Private placements by sophisticated investors will be accepted beyond RM3 million.
Yen Ming
“I am very excited to be able to offer this opportunity to own a part of PolicyStreet to all levels of investors as we embark on an exponential growth in the region. We have always wanted to do this but never had a chance to do so until now. So don’t miss out and act now”;
Yen Ming, CEO of PolicyStreet.
Sam Shafie
“We are excited to have PolicyStreet fundraising on pitchIN Equity Crowdfunding. PolicyStreet, a home-grown company, has been identified as one of Asia’s Top 10 InsurTech companies. This is a fantastic opportunity for investors to invest in this high growth startup”,
Sam Shafie, CEO of pitchIN.
The investment starts at RM2,514 for 100 shares at https://bit.ly/policystreet-ecf

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WealthTech

Rakuten Trade Sees Swell in Userbase Amidst the COVID-19 MCO

									by Fintech News Malaysia
April 8, 2020
1 comment

Rakuten Trade, a fully digital equities broker reported a surged in user base during the Movement Control Order (MCO) Period. The equities broker said in a media statement that they saw over 11,000 new accounts activated in March, a 100% month-on-month growth — with more that 64% of them done during the first phase of the MCO.
Mr Kaoru Arai, Managing Director, Rakuten Trade, said,
Kaoru Arai
“We attribute the high volume of appeal to many now working from home and other brokers still requiring some form of face-to-face contact. In view of this, we see many investors opting for a ‘zero contact’ equities trading platform like Rakuten Trade. The easy to use, non-face-to-face trading platform, and seamless account activation process that comes with using a digital platform like ours have become key benefits to enabling investors to trade in equities. Seamless, real-time trading coupled with affordability and greater control are an attractive package.”

In tandem with the surge in account activations, Rakuten Trade also recorded a 20% increase in trading value in March 2020, month-on-month.
“Increased market participation bodes well for the equities market as it will contribute towards market liquidity and resilience. Investors see the current equities market climate as an opportunity to “bottom fish” in fundamentally strong small to mid-cap stocks that have dropped in price but will eventually rise again. They are in for the long run and understand the importance of holding these investments in the current climate,”
said Mr Arai.
Expanding its digital services to cater to more experienced traders, Rakuten Trade recently launched its third product – RakuMargin. RakuMargin offers an automated facility limit approval of up to RM100,000 and carries the same low brokerage fees as its Cash Upfront and Contra Accounts.
More recently, Rakuten Trade launched HIVE, an effort to generate investment and trading ideas for clients from Kenanga Investment Bank Berhad (KIBB) and Rakuten Trade’s Research and algorithm teams. Using Telegram, HIVE provides avid investors with consensus trading signals, stock picks, counter performance and where applicable “Take Profit” suggestions.
As at 31 March 2020, it generated close to RM11 billion in trading value on Bursa Malaysia and activated almost 70,000 trading accounts in less than three years.

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Payments

Malaysians Contribute Over RM250,000 Boost E-Wallet’s Tabung COVID-19 in 10 Days

									by Fintech News Malaysia
April 8, 2020
0 comments

Between 21 to 31 March 2020, Malaysians contributed a total of RM258,921.30 to the ‘Tabung COVID-19 by Boost’ fund to aid front liners in the fight against the COVID-19 pandemic.
These donations have been channeled to the Ministry of Health’s (MOH) special COVID-19 fund to purchase medical equipment, medicines, reagents, disposable items, and other medical necessities such as Personal Protective Equipment that are vital for medical workers to contain the novel coronavirus.
Donations continue to pour into the fund. As of 5 April, total contributions have exceeded RM300,000 and continue to grow.

Dato’ Seri Dr. Chen Chaw Min
Expressing his gratitude, MOH Secretary-General Dato’ Seri Dr. Chen Chaw Min said,
“The Ministry of Health especially the hospitals, clinics and patients are truly grateful for the immense generousity of Boost as a caring corporate organisation. We appreciate your support and solidarity with us to combat COVID-19.”
Boost, a subsidiary of Axiata Digital Services and part of the larger Axiata Group Bhd, launched the donation fund as part of its #BoostGotYou campaign. With the extended MCO period, Boost is determined to drive more innovative solutions through its e-wallet that will help make staying at home comfortable for the duration.

Mohd Khairil Abdullah
“It is very uplifting to see how Malaysians come together during a time of crisis and it shows how the nation is ready to embrace digital technology as not only a means for doing good, but also a new way of life. The amount we’ve collected in just 10 days for MOH to keep up the battle against the killer virus is very encouraging and I hope Malaysians will continue to donate what they can spare to help save lives,”
said Mohd Khairil Abdullah, CEO of Boost.
“While our frontliners work tirelessly to protect Malaysians from this deadly pandemic, all of us can play our part by observing the MCO. Boost and other digital providers have created services for Malaysians to be able to carry out daily tasks without having to leave the safety of their homes. Let us do our individual parts to support the sacrifices our frontliners are making for the country,”
he added.
The second phase of funds received from 1 April to 30 April 2020 will be distributed between MOH and various NGOs actively looking after communities directly affected by the COVID-19 pandemic.

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Crowdfunding

MDEC Partners Crowdfunding and P2P Lending Platforms to Provide SMES Cash Flow Relief

									by Fintech News Malaysia
April 10, 2020
1 comment

The Malaysia Digital Economy Corporation (MDEC) today announced a partnership with seven crowdfunding operators to help entrepreneurs tide the economic challenges brought on by the COVID-19 onslaught. This announcement follows another partnership that MDEC has done with crowdfunding platforms to raise funds for COVID-19 frontliners.

According to a recent survey by The Malaysian Global Innovation and Creativity Centre (MaGIC) involving 239 startups, 35.1% of the respondents said they needed loans, 23.8% asked for grants or subsidies and 3.8% asked for deferment in repayments.

Surina Shukri
“We are also made aware that 74.9% of the survey respondents indicated that they were unsure or unaware of auxiliary financial support and incentives made available for entrepreneurs – a gap that MDEC is proactively pursuing to seal,”
said Surina Shukri, CEO of MDEC.
“While the general business community lauds the recent RM10bil financial lifeline for micro-entrepreneurs and SMEs, MDEC is mindful that many entrepreneurs may not be successful in obtaining government grants and other financial aid. As such, our Global Growth Acceleration Division has been relentlessly exploring alternative financing avenues and making these options known to businesses that are struggling to stay afloat during these trying times,”
added Surina.
This is MDEC’s second funding facilitation initiative led by its Global Growth Acceleration Division, following its successful launch of Meet Your Match Malaysia, a virtual investor-matching initiative with KK Fund Pte. Ltd., which has drawn 90 global investors and 75 promising local startups that are in a quest to raise close to USD100 million in investments.
In this second funding initiative, MDEC is supported by the Registered Digital Market Association (RDMA) with members comprising Equity Crowdfunding (ECF) and Peer-to-Peer Financing (P2P) operators that are registered by the Securities Commission of Malaysia. ECF enables groups of investors to fund businesses by taking up stakes in the investee companies for investment, whereas P2P involves funds being lent at a fixed interest rate over a fixed tenure.
Since its debut in June 2017 and November 2016 respectively, ECF and P2P fundraising activities in Malaysia have grown rapidly. As of end December 2019, the financing platforms had collectively raised over RM700 million and benefitted close more than 8,000 micro, small and medium enterprises (MSMEs), which are underserved by the traditional financial system.
Elain Lockman
“RDMA is pleased to share that seven ECF/P2P operators have come to the fore to support this alternative funding awareness drive by MDEC – Ata Plus, CapBay, Crowdplus Asia, Eureeca, Funding Societies, microLEAP and pitchIN. In these unprecedented economic conditions, conventional loans with collaterals will further burden businesses whereas ECF and P2P online platforms are able to swiftly meet the critical financing needs of businesses, particularly for MSMEs,”
said Elain Lockman, cofounder of Ata Plus and president of the RDMA.

Entrepreneurs who wish to explore this alternative financing option may do so by submitting an expression of interest at https://malaysiadigitalhub.my/virtualfunding. This drive begins today until 24 April 2020. MDEC will offer priority assessment to all applicants by expeditiously screening their eligibility before submitting the profiles to the applicants’ choice of ECF/P2P operator.
Gopi Ganesalingam
“Further to encouraging entrepreneurs to leverage on ECF and P2P platforms, our division will also be engaging the founders of MSC-status companies and other high-net-worth-individuals to pay-it-forward as investors on these digital financing platforms. Most industry leaders have experienced turbulent times and understand the need for support, particularly through financing,”
said Gopi Ganesalingam, Vice President of MDEC’s Global Growth Acceleration Division.
Since the enforcement of the movement control order, MDEC has developed a dedicated microsite for its #DIGITALvsCOVID movement. Consumers, businesses and investors are advised to regularly visit https://mdec.my/digitalvscovid/ to learn more on MDEC’s digital initiatives and tech relief services offered by a wide range of organisations to mitigate the social and economic impact of COVID-19.

Featured image: Surina Shukri, CEO of MDEC and Gopi Ganesalingam, Vice President of MDEC

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Digital Transformation
WealthTech

Bank Islam’s Subsidiary Launches “Robo-Intelligent” Investment App

									by Fintech News Malaysia
April 15, 2020
1 comment

BIMB Investment Management Berhad (“BIMB Investment”), a wholly-owned subsidiary of Bank Islam Malaysia Berhad, today announced the launch of BEST Invest online investment mobile application (BEST Invest app), what they described as its “first Robo-Intelligence Sustainable Shariah-ESG investing online platform.”
In their media statement, the company said that the BEST Invest app provides convenience and efficiency for individuals to build wealth. BEST Invest app offers a systematic, transparent and structured construction and building of wealth for individuals through investing in robo-intelligence and big data technology platform.
BEST Invest offers a suite of BIMB Investment’s Shariah-ESG unit trust funds across asset classes that includes global equities, Asia Pacific equities, Malaysia equities, Sukuk and money market. Based on investors’ financial goals and risk tolerance, BEST Invest assists investors digitally to construct an optimal investment portfolio driven by data and analytics.

Najmuddin Mohd Lutfi

“BEST Invest, also focuses on Shariah-ESG and sustainability investing. The underlying funds in BEST Invest app are shariah-ESG compliant. We are an UNPRI signatory and have been focusing on ESG investing since 2015. We are currently managing more than RM1 billion of ESG investment assets.
said BIMB Investment Chief Executive Officer, Najmuddin Mohd Lutfi.

The BEST Invest app offers an investor the opportunity to start investing either by selecting the ‘’Do it for Me’’ or the “Do it Myself” functions in the app. To illustrate, “Do it for Me” function enables the Robo-Intelligence system to identify and select the best investment methods, suitable funds and the investment amount based on the investor’s risk profile. Investors would not have to worry about their investments as they can focus on achieving their investment goals.
Alternatively, the ‘’Do it Myself’’ function enables investors to make their own decisions and self- invest without the assistance of the Robo-Intelligence system for a more customised experience. Investors can start investing and building their investment goals with the BEST Invest app with a minimum of RM10 with zero sales charge. Investors can also invest and/or withdraw their investments anytime and anywhere.

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Digital Transformation

Gig Economy Challenge: How Can We Solve Pressing Issues Faced By Gig Workers?

									by Fintech News Malaysia
April 20, 2020
0 comments

The importance of the gig economy has always seen a steady growth trajectory, but nothing has made its importance clearer to everyone than the COVID-19 pandemic — from delivering essential services to providing side income for those affected. Which is why it is urgent for us to look into how fintech and innovative digital solutions can help protect the gig economy workers.
In contrast to the traditional economy set-up, the gig economy is characterised by flexible, temporary, or freelance jobs with irregular income and working hours.
Fueled by the digital revolution in recent years, the growth of the gig economy is set to continue. By 2023, the global gig economy in gross volume terms are expected to increase from USD200 billion to USD455 billion. This shift in the employment landscape introduces new sources of financial risks that, if left unaddressed, may leave gig economy workers vulnerable to financial shocks.

In tandem with that, APEC Malaysia, Bank Negara Malaysia, MDEC and the United Nations Capital Development Fund launched the Financial Innovation Gig Economy Challenge.
The challenge calls for the submission of innovative solutions to improve the financial health of gig economy workers, in support of the theme and priority areas of APEC, particularly the Finance Ministers’ Process. These include:

Optimising human potential towards a future of shared prosperity;
The longstanding focus on financial inclusion;
Democratising the digital economy.

Malaysia as host of APEC 2020, calls for the pursuit of balanced and sustainable economic growth, along with fair and equitable wealth distribution across all segments of the population, including those engaged in the gig economy.
The challenge is therefore aimed at seeking out innovative solutions that help secure the economic and financial well-being of gig economy workers through the four pillars of financial health – spending, saving, borrowing and financial planning.
Solution providers across all APEC economies are invited to submit their application from today until 11 May 2020 at www.uncdf.org/finlab. Shortlisted applicants will be invited to participate in a four-week “accelerator” programme to further develop and refine their solutions with assistance from specialists.
At the end of the programme, the panel judges will select three winners to receive grants and an opportunity to pilot their products in Malaysia. The selected applicants will have the chance to showcase their winning solutions at the APEC Finance Ministers’ Meeting in October 2020. Further information about the competition can be found in the official website for the competition at www.uncdf.org/finlab.
The challenge is funded by MetLife Foundation.

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Crowdfunding

Securities Commission Raises Equity Crowdfunding Fundraising Limits to RM 10 Million

									by Vincent Fong
April 16, 2020
0 comments

Securities Commission Malaysia announced today the liberalisation of equity crowdfunding (ECF) limit to RM 10 million from the previous limit of RM 5 Million. This was announced during their Annual Report media conference which was held virtually.
This is in response to the growing popularity of alternative fundraising methods, especially among MSMEs. In 2019, alternative fundraising methods like equity crowdfunding and P2P financing saw a 127% growth to RM 400 million while fundraising through venture capital and private equity saw an 8% contraction to RM 600 million.
To date, ECF and P2p financing have successfully helped 1943 SMEs raised over RM 700 million.

Image Credit: Securities Commission Malaysia Annual Report 2019

Observing heightened interests by MSMEs to tap into alternative fundraising channels, the SC today also lifted fundraising limits on Equity Crowdfunding (ECF) platforms, and allowed ECF and peer-to-peer financing (P2P) platforms to operationalise secondary trading, both
with immediate effect.
From now till 30 September 2020, the government co-investment fund MyCIF, administered by the SC, has also increased its funding matching ratio from 1:4 to 1:2 for eligible ECF and P2P campaigns, to provide additional liquidity into the alternative fundraising space.

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Crowdfunding

AXA AFFIN Life Organizes COVID-19 Crowdfunding Campaign to Help Frontliners

									by Fintech News Malaysia
April 21, 2020
0 comments

Following the outbreak of COVID-19 pandemic, the Personal Protective Equipment (PPE) used by frontline personnel was reported to upsurge by two to ten times, resulting in a major shortage of PPE supply.
In response to the distress over the PPE shortage in Malaysia, AXA AFFIN Life Insurance Berhad as part of its Corporate Responsibility programme, is organizing a crowdfunding campaign namely – AXA AFFIN “Smash the Curve” COVID-19 Fund Raising Campaign. Running from now up till 15 May, 2020 via a crowdfunding platform – PitchIN, this campaign aims to raise RM150,000 collectively.
The funds will be used to procure the essential PPE such as overall suit, surgical face mask, disposable face shield, examination gloves and medical equipment for frontliners. The funds raised will be treated with full transparency with contributions and expenditures fully accounted for. The beneficiary will be shared at the end of the campaign.

Rohit Nambiar
“In unprecedented times like this, we should take a proactive role as a corporate citizen to provide valuable assistance and protection not only to our customers and employees but also extending protection to what matters most to our society now. Our courageous frontliners – healthcare workers, police officers, soldiers and volunteers, are putting their lives on the line. They are working intensely around the clock battling with the deadly virus while keeping us safe at home. Their heroic leadership is highly lauded and it is now our turn to keep them safe against this threat with sufficient PPE,”
said Rohit Nambiar, Chief Executive Officer of AXA AFFIN Life Insurance.
He further added,
“Heartfelt thanks to all our frontliners for their commitments and sacrifices. We should do our part, either by contributing to the AXA AFFIN COVID-19 Fundraising campaign or strictly adhere to the Restricted Movement Order and not adding additional stress to our healthcare system.”
Public can make a contribution at www.myaxa.co/smashthecurve at any amount. Minimum donation starts from RM5. Now is the time for all Malaysians to come together, break the chain and eventually smash the curve.

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Payments

Singapore’s FOMO Pay Expands into Malaysia Through OCBC Partnership

									by Fintech News Malaysia
April 22, 2020
1 comment

FOMO Pay, Singapore-based digital payment and digital banking solution provider, partnered with OCBC Malaysia to develop OCBC OneCollect as its first merchant cross-border QR code collection service.
This service allows any account holder of Singapore’s PayNow participating banks to make Singapore Dollar payments to eligible merchants in Malaysia via direct QR code payment through OCBC OneCollect.
This project follows the opening of FOMO Pay’s new office in Malaysia, Kuala Lumpur.

In their media statement, they said that the decision to open an office in Malaysia ties in with the company’s expansion strategy to focus on ASEAN and other emerging economies under rapid digital transformation trend in the recent years.
FOMO Pay describes itself as a company that provides a comprehensive range of digital banking solutions. Key features of these digital banking solutions consist of proprietary QR payment processing system, e-KYC solution, AI credit-scoring profiling solution, multi-channel account auto-reconciliation solution, cross-border switch interoperability solution, and many more.
The company said that it has worked with over 10,000 clients ranging from leading companies to small and medium enterprises. The company is the first batch recipient of Major Payment Institution License issued by the Monetary Authority of Singapore (MAS) and it also the founding member at the SGQR taskforce led by the Monetary Authority of Singapore (MAS).
Image Credit: FOMO Pay

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