Touch ‘n Go (TNG) Group’s subsidiary TNG Digital Sdn Bhd (TNGD) is reportedly one of the first digital wallet providers to be given conditional approval to serve as a Recognized Market Operator (RMO) by the Securities Commission of Malaysia (SC).
TNG’s management noted that they’re planning to introduce their financially inclusive investment product during Q1 2021, enabling users to gain access to various investment services for “as low as RM10” or approximately $2.50.
The conditional approval granted by the Securities Commission will allow the firm to directly provide capital market products and services, such as money market unit trust funds, via the Touch ‘n Go digital wallet platform, without having to deal with any third-party apps.
This offer is made possible via TNG’s ongoing collaboration with Principal Asset Management (Principal), a Malaysia-based asset management firm. This partnership leverages the platform development, technology and data expertise of Touch ‘n Go digital wallet with Principal’s experience working in the investment strategy and fund management business.
This development is consistent with the Securities Commission’s announcement in May 2020 that it will take care of the online distribution of money market products like unit trusts, via online wallet or digital payment platforms.
Effendy Shahul Hamid, Group Chief Executive Officer at TNG Group, stated:
“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. We feel that this offering will add significant value to our large payments and transportation user base and continue our evolution into financial services.”
“We aim to make this an extremely seamless and frictionless offer to 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.”