Sunway Group Enters Race For Digital Banking License Via Credit Bureau Malaysia Acquisition

Sunway Holdings, Sunway Berhad’s 100% owned subsidiary, is buying a 51% stake in Credit Bureau Malaysia (CBM). After the acquisition, Credit Guarantee Corporation Malaysia Berhad (CGC) and Sunway Holdings will be the two shareholders of CBM.

With this move, Sunway will diversify into the fintech sphere and enter the race to be granted one of Bank Negara Malaysia’s virtual banking licenses – joining contenders like Axiata GroupRazer, Grab, and AirAsia, as well as Hong Kong-based investment banking firm, AMTD.

“The acquisition will enable us to advance our ambition of building a financial technology ecosystem and securing a digital banking license, in order to promote financial inclusion for Malaysians and small and medium enterprises (SMEs) aligned with the 10th United Nations Sustainable Development Goal of Reducing Inequalities,” said Sunway president Dato’ Chew Chee Kin.

“SMEs are one of the most important catalysts of our economic growth and contribute almost 40% to the nation’s Gross Domestic Product. We see considerable potential in this segment, particularly in finance related services,” continued Dato’ Chew.

According to Dato’ Chew, the strength and expertise of CBM in credit reporting and trade referencing will complement the existing finance-related services offered by Sunway Group, which include money lending, hire purchase, factoring, cross-border remittance, and others.

CBM chairman Suresh Menon said that the new partnership will help bolster CBM’s efforts to offer more value-added solutions to its clients and the market. “With the collaboration, CBM and Sunway Group will soon be able to offer seamless end-to-end services from credit reporting right up to the various finance-related services to Malaysians and SMEs within the vast business ecosystem of CBM and Sunway Group,” he said.

(Source: FintechNews Malaysia, The Edge Markets)

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