KUALA LUMPUR (July 27): ManagePay Systems Bhd (MPay) said it is forming a joint venture (JV) company, through its wholly-owned subsidiary ManagePay Services Sdn Bhd (MPSB) together with Singapore-based Passion Venture Capital Pte Ltd (PVC), to participate in digital banking in Malaysia.
In a bourse filing today, MPay said it has inked an agreement to set up a JV company to procure a digital bank licence from Bank Negara Malaysia to operate a digital bank via the JV. MPSB will hold 51% in the JV company, while PVC will hold the remaining 49%. Investment in the JV company will be fully funded by PVC, said MPay.
PVC is a venture capital fund management firm registered with the Monetary Authority of Singapore. "PVC invests in start-ups and provides seed money for companies with the potential to grow and tap into the vast global consumer markets," MPay said.
"PVC brings the ability to raise the funds required for the digital bank and also a wealth of experience in banking and deep knowledge to enhance banking offerings; therefore, placing the JV company as a formidable forerunner for the digital bank licence application for Malaysia, and subsequently the region of Southeast Asia," MPay said.
As for MPay itself, the group said it is equipped with the infrastructure, processes, and operational know-how required to seamlessly transform into a full-fledged digital bank, particularly to cater to the same micro, small and medium enterprises market.
Shares in MPay closed unchanged at 10 sen today, giving it a total market capitalisation of RM71 million.