13th January 2021 - 3 min read
Malaysians can soon purchase investment products, such as unit trusts, through Touch ‘n Go eWallet. TNG Digital Sdn Bhd has been granted conditional approval from the Securities Commission (SC) to operate as a recognised market operator (RMO), making it the first e-wallet to do so.
TNG Digital, which is a subsidiary of Touch ‘n Go Group (TNG Group), said that the approval will allow it to directly distribute capital market products through the Touch ‘n Go eWallet platform. In other words, there is no need to go through third-party applications for such processes.
“This truly is a landmark development and an industry first. Our teams have been working tirelessly together with regulators and partners to get to this stage. The RMO status will allow us to bring a string of innovative digital offerings to our users,” said the group chief executive officer of TNG Group, Effendy Shahul Hamid.
Effendy also shared that the company aims to launch a financially inclusive investment product in the first quarter of the year, allowing its e-wallet users to access basic investment services for as low as RM10. TNG Group’s new investment offerings will be provided in partnership with Principal Asset Management, one of Malaysia’s largest fund management companies.
Aside from that, Effendy said that TNG Group seeks to enable the offerings with a seamless and frictionless process for Touch ‘n Go eWallet users. “With the approvals behind us, we will now focus on ensuring the user experience is best-in-class as we move towards a launch,” he said, adding that the new products will add significant value to TNG Group’s large payments and transportation user base. It will also continue the company’s evolution into financial services.
Effendy further commented that this move to offer more financial services via Touch ‘n Go eWallet will help to advance the nation’s digital and cashless agenda, as well as increase financial inclusion among the public.
TNG Digital’s application to become an RMO was made possible after the SC announced last year that e-service platforms – including e-wallets and e-payment service providers – are now allowed to sell capital market products. The regulator said that this is intended to encourage the development of innovative digital solutions and to make it easier for individuals to invest in Malaysia’s capital market. In line with that, the SC also updated the Guidelines on Recognised Markets to reflect the new provision.
(Sources: New Straits Times, Fintech News Malaysia)
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