BY CLEMENT ERIK WONG & NATASHA JEE
KUCHING: Sarawak’s unsuccessful bid for a digital banking licence is a non-issue, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said the state is willing to explore other options which can achieve similar results.
“It’s ok. We have our second option,” he said when met by reporters at Head of State Tun Pehin Sri Abdul Taib Mahmud’s Hari Raya Aidilfitri open house at Borneo Convention Centre Kuching (BCCK) here today.
He was asked to comment on Sarawak’s failed attempt in obtaining a digital banking licence in the quest to transform and move the state forward through its digital economy initiative.
Abang Johari asserted that the state would not reapply for the licence.
“I think it should be okay and it will not be a problem. After all, we have our own Fintech Platform (S Pay Global or formerly known as Sarawak Pay),” he stressed.
On April 29 (Friday), Bank Negara Malaysia (BNM) had announced the five successful applicants for the digital bank licences, which had been approved by the Minister of Finance.
The central bank in a statement said the successful applicants include a consortium of Boost Holdings Sdn Bhd and RHB Bank Bhd; a consortium led by GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd; and a consortium led by Sea Ltd and YTL Digital Capital Sdn Bhd.
Meanwhile, another two applicants, to be licensed under the Islamic Financial Services Act 2013 (IFSA), are a consortium of AEON Financial Service Co Ltd, AEON Credit Service (M) Bhd and MoneyLion Inc; and a consortium led by KAF Investment Bank Sdn Bhd.
Three out of the five consortiums are majority-owned by Malaysians, namely Boost Holdings and RHB Bank, Sea and YTL Digital Capital and KAF Investment Bank.
GSX Bank Pte Ltd is the digital banking group between Grab Holdings Inc and Singapore Telecommunications Ltd (Singtel), according to the former’s filing with the US Securities and Exchange Commission (SEC) in October 2021.
BNM received a total of 29 applications from companies and partnerships across different industries, with a mix of foreign and domestic applicants.
The assessment criteria covered the character and integrity of applicants, nature and sufficiency of financial resources, soundness and feasibility of business and technology plans as well as ability to meaningfully address financial inclusion gaps.
