KUALA LUMPUR – Touch ‘n Go (TNG) Group announced that its subsidiary TNG Digital Sdn Bhd (TNGD) is the first eWallet to obtain conditional approval to operate as a recognised market operator (RMO) by the Securities Commission Malaysia (SC).
In a statement on January 13, the group said that the approval enables the company to directly distribute capital market products, including money market unit trust funds, through the Touch ‘n Go eWallet platform, without having to be directed to third-party applications.
“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,” said Effendy Shahul Hamid, the group chief executive officer (CEO) of TNG Group.
“Aimed at disrupting the status quo, we will be launching a financially inclusive investment product in the first quarter of the year (1Q21), allowing our users to access basic investment services for as low as RM10,” said Effendy.
Effendy expressed that this offering will add significant value to the group’s large payment and transportation user base, and continue its evolution into financial services as the group aims to make this an extremely seamless and frictionless offer to Touch ‘n Go eWallet users.
He added, “With the approval behind us, we will now focus on ensuring the user experience is best-in-class as we move towards a launch.”
The group also stated that the innovative proposition is made possible through TNG’s collaboration with Principal Asset Management, one of Malaysia’s largest fund management companies.
“This win-win partnership combines platform development, technology and data expertise of Touch ‘n Go eWallet and Principal’s expertise in investment strategy and fund management,” said TNG Group in the statement.
CIMB Group Holdings Bhd owns 100% of Touch ‘n Go Sdn Bhd, which in turn owns 51% of TNGD. The remaining 49% of TNGD is owned by Ant Financial Group.
Established in 2017, TNGD is the owner and operator of Touch ‘n Go eWallet, with over 15 million registered users.