Touch 'n Go Group's subsidiary TNG Digital Sdn Bhd was today, 13 January, granted conditional approval to operate as a Recognised Market Operator (RMO) by the Securities Commission of Malaysia (SC)
The conditional approval by the SC will enable TNG Digital to directly distribute capital market products, including money market unit trust funds, through the Touch 'n Go eWallet platform, without having to be directed to third-party applications, the company said in a statement.
It makes Touch 'n Go the first e-wallet to obtain this approval
The approval also allows users to access basic investment services for as low as RM10.
The company's group chief executive officer (GCEO) Effendy Shahul Hamid called the RMO status a "truly landmark development and an industry first".
According to Effendy, the RMO status will allow the company to bring a string of innovative digital offerings to its users.
"Aimed at disrupting the status quo, we will be launching a financially inclusive investment product in the first quarter of the year, allowing our users to access basic investment services for as low as RM10," he said.
"We feel that this offering will add significant value to our large payments and transportation user base and continue our evolution into financial services. We aim to make this an extremely seamless and frictionless offer to Touch 'n Go eWallet users. With the approvals behind us, we will now focus on ensuring the user-experience is best-in-class as we move towards a launch," Effendy added.
This proposition is made possible through TNG's collaboration with Principal Asset Management, a Malaysian fund management company
According to the statement, this partnership combines platform development, technology, and data expertise of Touch 'n Go eWallet and Principal Asset Management's expertise in investment strategy and fund management.
Using Touch 'n Go eWallet as a delivery platform also supports the nation's digital and cashless agenda.