KUALA LUMPUR (April 24): Conglomerate Sunway Bhd is venturing into the financial technology (fintech) sphere with its acquisition of a 51% stake in credit reporting agency Credit Bureau Malaysia (CBM).
In a statement today, Sunway said its unit Sunway Holdings is buying the stake.
It said upon completion of the acquisition, Credit Guarantee Corporation Malaysia Berhad (CGC) and Sunway Holdings will be the two shareholders of CBM.
Sunway Bhd president Datuk Chew Chee Kin said the acquisition will enable it to advance its ambition of building a fintech ecosystem and securing a digital banking licence, in order to promote financial inclusion for Malaysians and small and medium enterprises (SMEs) aligned with the 10th United Nations Sustainable Development Goal of Reducing Inequalities.
Chew said the move is part of Sunway Group’s exercise to diversify into fintech.
He said with this collaboration with CGC and CBM, Sunway Group eyes opportunities to offer finance-related services to SMEs.
“SMEs are one of the most important catalysts of our economic growth and contribute almost 40% to the nation’s gross domestic product. We see considerable potential in this segment, particularly in finance-related services,” he said.
Chew said the strength and expertise of CBM in credit reporting and trade referencing will complement the existing finance-related services offered by Sunway Group, which includes money lending, hire purchase, factoring, cross-border remittance and others.
Meanwhile, CBM chairman Suresh Menon said the new partnership would help bolster CBM’s efforts to bring more value-added solutions to its clients and the market.
“With the collaboration, CBM and Sunway Group will soon be able to offer seamless end-to-end services from credit reporting right up to the various finance-related services to Malaysians and SMEs within the vast business ecosystem of CBM and Sunway Group,” he said.
At 11.15am, Sunway shares were flat at RM1.58, giving it a market capitalisation of RM7.79 billion.