MNC Wireless inks MoU to provide mobile physical gold retail platform

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KUALA LUMPUR (July 16): MNC Wireless Bhd has inked a memorandum of understanding (MoU) with Urban Setup Sdn Bhd to provide a transparent, secured and convenient mobile physical gold retail platform in Malaysia.

In a filing with Bursa Malaysia today, MNC Wireless said Urban is the licensee of the rights to the physical gold retail platform of SGPMX (M) Sdn Bhd.

In a separate statement, MNC Wireless said the gold e-commerce retail platform, slated to be launched by end-2019, will allow consumers to buy physical gold via the mobile application with a minimum fraction value of 1 sen.

MNC executive director Christopher Tan Chor How said the gold bullion trading industry size in Malaysia is RM10.7 billion in 2017, estimated to be RM12.4 billion in 2018 and forecasted to be RM15.8 billion in 2019.

"[The] encouraging exponential growth [in] trading volume would provide a strong demand for our gold e-commerce platform. The forecast is at a staggering RM25.6 billion in 2021, according to the Federation of Goldsmiths and Jewellers Association of Malaysia.

"The launch of our physical gold-backed mobile retail platform with strong partnership with international bullion refiners, will enable gold bullion purchase to be accessible to the masses, allowing investors to buy, sell or redeem and have them delivered to desired location, thereby giving end-to-end solution," said Tan.

Meanwhile, Urban director Datuk Azrulnizam Abdul Aziz said the partnering of MNC and SGPMX is a testament of their belief in the prospect of e-commerce for physical gold via a financial technology platform that promotes overall positive economy imprint.

At the midday break today, MNC shares were flat at 6.5 sen for a market capitalisation of RM31.09 million.