Petaling Jaya: Pertama Digital Bhd has decided to drop its neo-bank project announced last year and shift its focus to strengthening the government’s digital initiatives.
CEO Saifullah Akhtar said the move is a response to Malaysia’s accelerating digitalization efforts and represents a great opportunity for the company.
Regarding the reason for the decision to cancel the neobank plan, he said, “As for the highly regulated ones like neobanks, Bank Negara Malaysia does not want to show its status as a bank to non-banks, so it is called a ‘neobank’. Even the term is protected.”
“We have observed significant inflows of funds into retail digital banking from our competitors. I will,” he told reporters after today’s Pertama Digital shareholder meeting.
Although certain areas of the banking sector are well served, Saifra said business banking and government banking are still outdated and resemble practices from the 1990s. “So what we plan to do now is work with incumbent banks to help them become more competitive when it comes to integrating with companies,” he added.
Regarding the normalization plan, Chief Financial Officer Shivavaran Poovarasingam said Pertama Digital could consider expanding its existing business or exploring potential acquisition opportunities.
“One is that we are able to grow our existing business and roll out new products and services, which is what we are doing. We expect to be profitable in the first quarter of 2024. Next, we are considering the possibility of an acquisition, and we are raising funds for that purpose.
“The first part of the fundraising is underway. It will be packaged with a large acquisition, after which we will submit the normalization plan to Bursa for approval,” said Sivavaran.
In its filing to Bursa dated May 23, 2023, the company acknowledged that the Malaysian government recognizes the importance of the IT sector to its socio-economic growth, and to stimulate the sector and facilitate the digitization of the industry as a whole. said it launched the Malaysian Digital Economy Blueprint (MyDigital).
“Many of[the government’s]MyDigital goals align with the Group’s business plan. I plan to actively participate in the implementation of
“The Group is committed to staying relevant to national objectives by proposing innovative and risk-managed solutions backed by strong operational capabilities. Recognizing the challenges faced by people with limited digital skills, the group’s main goal is to identify and help this demographic.The company is conducting a ‘coin conversion project’ through DVSB. there is,” he said.
The effort involves setting up kiosks in selected commercial areas where the public, including retailers and consumers, can sell Malaysian coins in exchange for money. Funds are deposited into their respective bank accounts using the company’s mobile application called “MyPay”. Alternatively, individuals can purchase coins from these kiosks.
The company will generate transaction fees based on the total amount of coins bought and sold through the kiosks by the public.
“This project aims to establish a sustainable ecosystem for recycling as used coins have monetary value and are commonly used in everyday cash transactions. As a result, we anticipate positive demand for these coin exchange services,” the application states.
In addition, the company also operates several other services. These include the Malaysian government’s SMS gateway known as mySMS 15888, MyPay, a mobile application that facilitates check and payment transactions with government agencies, and eJamin, a digital bail payment solution used by Malaysian criminal courts. It is included.
“The outlook for the Group’s mobile and digital solutions business is encouraging as further plans are under development and will be announced at the appropriate time,” the company said in its filing.