ManagePay Systems Berhad (MPay) has formed a joint venture company with Singapore-based Passion Venture Capital Pte Ltd (PVC) with the aim of foraying into digital banking in Malaysia.
In a filing with Bursa Malaysia, MPay said that its subsidiary ManagePay Services had entered into the joint venture agreement with PVC to set up a company that will be applying for one of Bank Negara Malaysia’s digital banking licenses. MPay will hold 51% in the joint venture company, with PVC holding the remaining shares.
“PVC brings the ability to raise the funds required for the digital bank and also a wealth of experience in banking and deep knowledge to enhance banking offerings; therefore, placing the JV company as a formidable forerunner for the digital bank licence application for Malaysia, and subsequently the region of Southeast Asia,” said MPay.
Meanwhile, MPay has said that it is equipped with the infrastructure, processes, and operational know-how needed to seamlessly transform into a fully-fledged digital bank, catering especially to the same micro, small, and medium enterprises market.
Under the agreement, PVC is required to deposit or raise funds of close to RM100 million for the joint-venture company within three months from the date of agreement.
“In the event one month before the expiry of the conditional period, the total funds raised by PVC does not reach RM75mil or more, the parties agree that MPay may invite other investors or shareholders to deposit monies into the capital funds to attain the initial investment sum necessary for the application of a digital bank licence to Bank Negara,” said MPay.