Category: Fintech

The Securities Commission Malaysia (SC) will introduce a regulatory sandbox and enhance its regulatory framework to encourage securities tokenisation to help spur  innovations in the capital market.  

The SC will also be collaborating with Khazanah Nasional to explore the issuance of  tokenised bond. 

The three initiatives, unveiled at the SCxSC Fintech Summit 2024 starting today, are  aimed at promoting a responsible innovation in the country’s capital market. About  1,000 people are attending the two-day summit. 

In his opening address, the SC Chairman Dato’ Mohammad Faiz Azmi said the SC is  committed to foster a thriving fintech ecosystem in the capital market.  

“To drive innovation in the capital market, the SC is taking a holistic approach. Through  initiatives like the regulatory sandbox and SCxSC, we enable industry experimentation and foster collaboration with the broader ecosystem,” he said. 

Recognising rapid technological advancements, the SC has received several proposals that do not fully fit within existing regulatory frameworks.  

To address this, the SC is introducing a regulatory sandbox framework (sandbox),  providing a controlled environment for testing innovative products and services while ensuring investor protection. 

Corporations developing solutions in areas like financial inclusiveness, Islamic finance and retirement solutions are encouraged to apply.  

The sandbox is a regulatory tool for enhancing policies to ensure they are fit for  purpose. For example, it may allow innovative tokenised offerings to be tested within  the sandbox, in line with the SC’s efforts to develop its technology-agnostic approach  for tokenised securities and identify best practices. 

In this respect, the SC will develop a guidance early next year for intermediaries to  understand and manage associated risks in relation to securities tokenisation.

Corporations have until April 2025 to apply for the first cohort of the Sandbox.  

Interested parties are required to participate in pre-consultation sessions prior to  submission. These sessions are available immediately, and interested parties can begin engagements by emailing afinity@seccom.com.my.  

Accepted applications will have up to 12 months to test their products or services. 

Eligibility criteria include offering innovative capital market products or services that  are not currently available in Malaysia and do not fully fit under existing regulatory  framework that bring value to the market. 

In addition, the SC is collaborating with Khazanah Nasional, as a potential issuer, to  explore how blockchain technology can enhance the efficiency of bond issuance and  operations. This initiative explores the use of smart contracts and custodial  arrangements. 

This year’s edition of the SCxSC Fintech Summit focuses on the use cases and  opportunities of emerging technologies like artificial intelligence and blockchain in the  capital market. 

For the past 10 years, the Summit has served as a platform for fintech communities  to engage, network and explore fintech-driven opportunities. 

Insights are delivered through an immersive experience of blending cutting-edge  demos, roundtables, exhibitions, keynotes and panel discussions.  

The SCxSC Fintech Summit 2024 also featured the Demo Day of the SC FIKRA ACE  Accelerator1 programme, where 10 startups pitched for the chance to be selected as  2024 cohort’s winners.  

SCxSC aligns with the SC’s broader innovation agenda to harness technology, supporting the Capital Market Masterplan 3 (CMP3) objectives of catalysing economic  growth, empowering investors and promoting a sustainable, inclusive stakeholder.

Kuala Lumpur, Malaysia – September 10, 2024 – microLEAP, Malaysia’s prominent P2P financing platform specialising in Islamic financing, welcomes the recent call by the Securities Commission Malaysia (SC) for stakeholders to collaborate in shaping the future of Islamic fintech. As pioneers in introducing both Shariah-compliant and conventional financing on the same platform, microLEAP fully supports SC Chairman Datuk Mohammad Faiz Azmi’s emphasis on leveraging the ethical principles of Maqasid al-Shariah to engage a broader audience. 

microLEAP’s mission is closely aligned with these values, advocating for ethical and inclusive financing while remaining committed to the growth of the Islamic fintech ecosystem. With physical offices in Sabah, Sarawak, Johor, Perak, and Penang, this strategic move underlines microLEAP’s commitment in extending the reach of Islamic financing beyond just the Klang Valley.

In the first half of 2024, 98.7% of the company’s financing notes were Shariah-compliant, showcasing its leadership in this space. microLEAP disbursed RM 46.56 million across 78 notes during Q1 and Q2, and has already disbursed over RM 175 million since its inception. This significant growth reflects the increasing demand for Islamic financing solutions, aligning with the SC’s findings that Islamic ECF and P2P platforms now contribute 24% of total alternative funding, compared to just 8% in 2022.

Collaboration is key to unlocking the potential of Islamic fintech. microLEAP continues its ongoing partnership and collaboration with key government bodies, such as the Ministry of Entrepreneur Development and Cooperatives (KUSKOP), SME Corp, and the Malaysian Technology Development Corporation (MTDC), to advance Islamic finance and ensure greater financial inclusion.

Datuk Mohammad Faiz’s call for a balanced regulatory framework is timely, and microLEAP fully supports the SC’s initiatives to foster innovation while ensuring market integrity. microLEAP embodies this balance, as demonstrated by its reduction in default rates to 0.77%. The platform continues to focus on responsible risk management while delivering strong returns for investors, achieving an average return of 15.1% in the first half of 2024.

As Malaysia’s P2P financing ecosystem continues to grow, microLEAP remains dedicated to contributing to this upward trajectory. Its expansion into underserved areas of Malaysia further reaffirms microLEAP’s dedication to ensuring that all of Malaysia benefit from the potential of Islamic fintech.

“At microLEAP, we believe in taking bold steps toward a more inclusive and ethical financial ecosystem. By partnering with key government agencies and establishing a physical presence in several states, we are breaking barriers and expanding access to Islamic financing,” said Tunku Danny Nasaifuddin Mudzaffar, Founder and CEO of microLEAP. “Collaboration is the cornerstone of progress, and together with our partners, we aim to shape a brighter future for Islamic fintech.”

microLEAP stands ready to collaborate with the SC and other stakeholders to build a robust, inclusive, and ethically-driven financial ecosystem. The company remains steadfast in its belief that small steps can lead to a big impact.

KUALA LUMPUR, MALAYSIA – Media Outreach Newswire – 2 September 2024 – Malaysia’s leading independent investment bank, Kenanga Investment Bank Berhad (“Kenanga Group” or the “Group”) announced that it has partnered with leading Singaporean fintech firm Helicap Pte Ltd (“Helicap”) in a move to further advance its digitalisation initiatives.

The signing ceremony was witnessed by Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank (standing), along with other key representatives. From left: Cheong Boon Kak, Group Chief Financial & Operations Officer, Kenanga Investment Bank Berhad; Datuk Wira Ismitz Matthew De Alwis, Executive Director & Chief Executive Officer, Kenanga Investors Berhad; David Z Wang, Co-Founder & Chief Executive Officer, Helicap Securities; Quentin Vanoekel, Co-Founder & Chief Investment Officer, Helicap Investments; and Jeremy Tan, Co-Founder & Group Chief Operating Officer.

As part of this partnership, Kenanga Group, through a fund managed by its asset and wealth management arm, Kenanga Investors Berhad (“Kenanga Investors”), has collectively taken a stake of 8% (“the Investment”) in Helicap. The Investment forms Helicap’s Series B funding round, which sees Kenanga Group as lead investor alongside Saison Capital Pte Ltd, the corporate venture capital arm of Credit Saison, one of Japan’s largest non-bank financial companies that is listed on the Tokyo Stock Exchange. Subsequently, Kenanga Group’s stake will be further increased in the near future to approximately 10%, making Kenanga Group the largest institutional investor in Helicap.

Helicap, one of the first fintech private investment platforms specialising in the alternative lending space in Southeast Asia (“SEA”), has built its success on a foundation of innovation and technology. Central to its competitive edge is its proprietary credit analytics engine, which stands as the company’s strongest asset.

According to Kenanga Group’s Managing Director, Datuk Chay Wai Leong, the Group distinguishes itself from its peers by leveraging digital technology to elevate its service and solution offerings. “By focusing on digital innovation, we have provided multiple touchpoints to enable our clients to engage with our services more efficiently and effectively. Therefore, our investment into Helicap is a natural progression in our digitalisation journey, as Helicap’s proprietary technology can potentially be embedded into Kenanga’s own lending and investment banking business seamlessly to provide greater loan book transparency and analysis, portfolio and credit risk monitoring and granular-level data to identify nascent opportunities and obtain microeconomic insights”, he explained.

This Investment builds upon Kenanga Group’s broader digitalisation initiatives, following its successful investments into Rakuten, CapBay, Tokenize Malaysia and Merchantrade. These partnerships reflect the Group’s commitment to collaborating with best-of-breed fintech companies that are pioneers in their fields. By deploying first-in-class digital technologies, it aims to continue to enhance its business activities, access new markets, and explore new segments.

The Investment follows the launch of Kenanga Investors’ latest product suite, the Kenanga Alternative Series, which was marked by the introduction of the Kenanga Alternative Series: Income Opportunities Fund in July 2024. It feeds into the Helicap Income Opportunities Fund, an open-ended Asian private credit fund.

Kenanga Investors’ Executive Director and Chief Executive Officer, Datuk Wira Ismitz Matthew De Alwis commented on the expanded relationship with Helicap, stating, “Our enhanced partnership with Helicap will enable us to tap into its global network as a source of offshore capital as well as to facilitate deal co-origination and syndication efforts in both Singapore and Malaysia. Ultimately, we believe this will provide a strategic base for Kenanga Group to build further cross-border collaborative partnerships and capitalise on the dynamic growth in the region, as well as the rising income and affluence among South-East Asian investors”.

From the fintech firm’s perspective, such a collaboration would seamlessly integrate Helicap’s strengths in private credit with Kenanga Group’s brand recognition and operational capabilities, creating a state-of-the-art private credit business. David Z Wang, Co-founder & CEO of Helicap Securities, stated, “We are thrilled to announce our partnership with Kenanga Group, a pivotal step in bringing Helicap’s investment opportunities to the Malaysian market. This collaboration represents a significant milestone as we unite Kenanga’s robust local market presence and billions in assets with an extensive client base with Helicap’s powerful, sector-agnostic, data-driven platform and proprietary analytics technology. As a leader in Asia’s private credit space, Helicap is poised to drive meaningful growth in Malaysia. Our commitment to financial inclusion and innovative investment solutions remains unwavering, as we continue to address the dynamic needs of investors and lenders alike.”

Since its establishment in 2018, Helicap, through its regulated subsidiaries, has deployed almost S$500 million, offering investment opportunities in Southeast Asia to accredited and institutional investors. As a leading platform operator in Southeast Asia, it has strategically focused its investments primarily on financial companies, leveraging its unique credit screening system and enhanced loan structure to deliver stable and consistent returns.

For more information about Kenanga Group, please visit www.kenanga.com.my.

Kenanga Investment Bank Berhad 197301002193 (15678-H)
Established for over 50 years, Kenanga Investment Bank Berhad (“The Group”) is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing. An innovative and established home-grown brand, the Group’s digital ambition includes building a robust digital ecosystem that meets the needs of its clients and businesses. Some of its game-changing products include Malaysia’s fully online digital stockbroking platform Rakuten Trade and a fully A.I. robo-advisor, Kenanga Digital Investing. The Group also launched Malaysia’s first securities broking e-wallet, Kenanga Money, paved the way in AI-led Quan and algorithmic trading, kick-started a revolutionary supply chain financing solution for SMEs and made inroads into the digital assets space through its investment in Tokenize Technology (M) Sdn.Bhd. The Group has garnered a host of awards and accolades reflecting its strong market position. It was awarded Highest Returns to Shareholder Over Three Years, Highest Growth in Profit After Tax Over Three Years and Highest Return on Equity Over Three Years by The Edge Malaysia Centurion Club in the Financial Services Category, Best Overall Equities Participating Organisation (Champion), Best Retail Equities Participating Organisation (Champion), and Best Online Retail Participating Organisation (Champion), as well as Best Institutional Derivatives Trading Participant (Champion) and Best Overall Derivatives Trading Participant (1st Runner Up) in the Bursa Excellence Awards 2022. The Group was also accorded the title of Best House, South and Southeast Asia Award in the SRP Asia Pacific Awards 2022.

The Group continues to be a regular and repeat recipient of distinguished industry accolades, such as the Lipper, Fundsupermart and Morningstar awards. Rakuten Trade, Malaysia’s first fully digital securities broker in 2017 via a joint venture with Japanese fintech giant Rakuten Securities Inc was also named Malaysia’s Digital Experience of the Year – Brokerage at the Asian Experience Awards 2022. For its continued efforts towards community outreach and employee volunteerism, the Group was awarded the coveted Bank of the Year Award for Environmental, Social & Governance Excellence, as well as Long-Standing Excellence in Sustainability at Sustainability & CSR Malaysia Awards 2022. The Group is also a Participant of the United Nations Global Compact and adheres to its principle-based approach to responsible business. Today, Kenanga Investment Bank Berhad is an award-winning leading independent investment bank in the country with a continuous commitment towards driving collaboration, innovation, digitalisation and sustainability in the marketplace.

The issuer is solely responsible for the content of this announcement.

KUALA LUMPUR, 28 August 2024 – Building on their bancassurance partnership established in May 2024, Zurich General Insurance Malaysia Berhad (Zurich) and GXBank Berhad (GXBank) have announced the launch of Cyber Fraud Protect offered within the GXBank application and powered by Zurich Edge platform. This innovative digital insurance product safeguards Malaysians for financial loss arising from unauthorised electronic transfer resulting from cybercrime or electronic scam messages.

According to the Federal Commercial Crime Investigation Department, Malaysians lost a staggering RM1.6 billion to online scams over 19 months, from last year up to July 2024. As digitalisation continues to shape our consumption habits and financial activities, the risk of online scams has grown significantly, posing new challenges for consumers and society at large. Cyber Fraud Protect offers coverage for financial losses due to unauthorised electronic transfer from any local bank account, e- wallet, credit or debit cards, providing essential protection against these escalating cyber threats.

Junior Cho, Country CEO/Head of Zurich Malaysia said, “Since our partnership began in May, we‘ve collaborated closely with GXBank, leveraging Zurich’s risk management expertise and digital capability to launch Cyber Fraud Protect – an innovative online insurance solution for Malaysians. Cyber Fraud Protect embodies our brand promise, ‘Care For What Matters,’ by delivering essential security in an increasingly digital world. We’re confident it will offer Malaysians the robust protection they need in today’s fast-changing digital landscape. In designing and launching this product, our primary focus was ensuring a smooth, positive customer experience, and with the Zurich Edge platform we have been able to do just that, delivering a seamless and convenient in-app purchasing journey for GXBank customers.”

Pei-Si Lai, Chief Executive Officer, GXBank said, “Since our launch, we have been constantly
working to provide the best digital banking experience while ensuring the financial literacy,
accessibility and safety of Malaysians. Co-creating Cyber Fraud Protect with Zurich, this product is
unique and one-of-a-kind. It not only offers the highest coverage protection of up to RM20,000 against
losses due to unauthorised transactions from cybercrimes, but also the widest coverage for all local
bank accounts, debit or credit cards and e-wallets beyond GXBank’s ecosystem. Additionally, our
collaboration will also see us introduce other insurance products in the future. These are aligned with
our ongoing mission to build greater financial resilience within reach for Malaysians of all
backgrounds. “

As part of the official product launch, a panel of experts gathered for a discussion on addressing the
heightened concerns around cyber fraud and scams in Malaysia. Moderated by Nazrudin Rahman, a
well-known Malaysian TV host, writer, producer and actor, the panel included ASP Rahmat Fitri
Abdullah, Founder/Director of Rahmat Fitri Consultant Sdn Bhd; Ooi Jian Wei, Associate Dean and
Lecturer at the Department of Social Science, Tunku Abdul Rahman University of Management and
Technology (TAR UMT); Vincent Mok, Chief Risk Officer of GXBank; and Evelyn Ng, Deputy Chief
Claims Officer (Property & Casualty) of Zurich Malaysia.

Get Protected Now with Cyber Fraud Protect 
Customers interested in securing Cyber Fraud Protect can easily do so via the GXBank mobile app by
following these simple steps:

1. Select a Plan: Choose from three coverage options – Basic (RM1/month), Plus (RM2/month),
or Pro (RM4/month) – directly within the GXBank mobile app, and click “Get Protected Now”.

2. Key in Details and Confirm: Verify your email address to ensure receipt of all important
policy-related communications, and confirm details of the selected plan, including coverage
terms and premium breakdown.

3. Authorise and Activate: Approve the transaction through GXSecure, and the policy will be
activated instantly. Coverage details will be available in the app and a certificate of insurance
will be sent via email. The monthly premium will then be automatically deducted from the
customer’s GXBank account.

For further information on Cyber Fraud Protect, please visit the official website here
(https://gxbank.my/cyberfraudprotect) for more details.

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Kuala Lumpur, 22 August 2024 – Source-to-Pay [S2P] and Procure-to-Pay [P2P] specialist Valtatech has
made a strong entry into the Malaysian market, by integrating with Microsoft Dynamics 365 and the
Pax8 marketplace to drive Malaysia’s ongoing e-invoicing transformation. This follows its accreditation
by the Malaysian Digital Economy Corporation [MDEC] as a pilot e-invoicing service provider for MDEC
and Lembaga Hasil Dalam Negeri [LHDN].

With a decade of experience implementing end-to-end procurement solutions across Asia Pacific and
Europe, Valtatech is uniquely positioned to guide Malaysian businesses through not only the
complexities of the e-invoicing mandate but also to unlock the strategic value of digital transformation.

“We applaud the Malaysian Government’s forward-thinking approach to implementing e-invoicing on a
country-wide scale,” said Jussi Karjalainen, CEO of Valtatech. “We are not just another e-invoicing
provider; we curate end-to-end ecosystems to improve business procurement processes. Our extensive
experience in other geographies has demonstrated the effective and efficient implementation of e-
invoicing as a catalyst for digitizing the entire business procurement ecosystem to drive growth within a
country and beyond borders.

“Our decade of experience, combined with our deep understanding of the local market, makes us the
perfect partner for any Malaysian business to go beyond compliance and drive efficiencies to maximize
business opportunities. Our collaboration with Microsoft and Pax8 fuels our ambitions to create an end-
to-end ecosystem to offer companies critical solutions at every business processing touchpoint."

The integration with Microsoft will enable Valtatech to make its e-invoicing Gateway (SaaS) available on
Microsoft Azure as well as being integrated with Microsoft Dynamics 365. Valtatech will then work
closely with Pax8 to market the solution to the 2nd wave of e-invoice prospects, who are targeting to go
live in January 2025.

Valtatech’s mature, localized platform seamlessly integrates with existing systems, ensuring a smooth
and efficient transition for Malaysian businesses. The procurement service provider prioritizes data
security measures like encryption, secure data storage, regular audits, and proactive firewall
management, ensuring peace of mind for their clients.

Leading the Valtatech charge in Malaysia is Country Manager, Malick Aboobakar, a 30-year veteran in
digital economy.

”Having worked with many Malaysian businesses to drive the digitalisation of their businesses, I am
confident our team will be able to provide the unique combination of leveraging Valtatech’s global
experience, with strong local insights and understanding," said Malick.

“We have already onboarded several companies, and are in advanced discussions with other solutions
providers to add depth and breadth to our business processing solutions ecosystem. The country’s
positive economic growth and the recent influx of international investments, particularly in tech
industries, indicate the increasing need to digitise the Malaysian economy. The mandatory
implementation of e-invoicing is an opportunity for Malaysian companies to make the most of this
pivotal step. Valtatech aims to be their preferred partner in the business processing automation space,”
he added.

Valtatech is a financial process automation provider with 10 years of proven success across Asia Pacific
and Europe. Trusted by industry leaders like Cycle & Carriage and Konica Minolta, Valtatech offers a
comprehensive suite of end-to-end e-procurement solutions that include source-to-pay (S2P), Procure-
to-Pay (P2P), e-invoicing and compliance technology.

For more information on Valtatech please visit www.valtatech.com/MY

About Valta Technology Group
Valta Technology Group is a Source to Pay advisor, Managed Services provider, and e-invoicing and
compliance technology company specialising in implementing end-to-end solutions. With offices in
Melbourne Australia, Manila Philippines, Singapore, and Malaysia, Valtatech offers leading managed
technology solutions, and best practice advisory services assisting organisations across Asia Pacific to
automate their finance and procurement functions.