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Jan 2017 18

EPF: More than half of Simpanan Shariah fund taken up

KUALA LUMPUR: The Employees Provident Fund (EPF) says a total of RM59.03bil of the initial RM100bil fund allocated for Simpanan Shariah 2017 have been taken up and 635,037 members have switched to Simpanan Shariah, as at Dec...

KUALA LUMPUR: The Employees Provident Fund (EPF) says a total of RM59.03bil of the initial RM100bil fund allocated for Simpanan Shariah 2017 have been taken up and 635,037 members have switched to Simpanan Shariah, as at Dec 23, 2016.

“We have anticipated that at least half of the initial RM100bil fund will be taken up and we are truly encouraged by the latest statistics.

“For Simpanan Shariah 2018, we have allocated RM50bil as further injection,” EPF chief executive officer Datuk Shahril Ridza Ridzuan said in a statement yesterday.

“We are on a good track of growing our investment in Shariah assets.

 

“About 45% of EPF’s total investment assets are already syariah compliant and we expect to grow these assets by at least RM25bil a year on average,” he added.

Simpanan Shariah was introduced in August 2016 as an option for members who wish to convert their current conventional EPF savings to one that is managed and invested in accordance with the syariah principles.

Members who wish to switch to Simpanan Shariah 2018 may do so before Dec 24 this year.

Eventually, it was reported that EPF expected its Islamic fund to account for a 40% plus uptake by “members regardless of religion, race and nationality”.

The scheme was introduced following a survey of its members, of whom 71% agreed with the launching of a syariah-compliant retirement offering.

Unlike the conventional account, which has a guaranteed dividend of 2.5% per year, Simpanan Shariah does not have a guaranteed dividend.

The dividend rates will be based on the portfolio performance of syariah-compliant investments.

According to the EPF, the variance in the overall returns between the conventional account and Simpanan Shariah is expected to be about 0.5% or 50 basis points over a 20 to 30-year investment horizon.

A syariah fund is known to perform well in a volatile economy.

 

Source: The Star

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Jan 2017 17

SMEs told to embrace e-commerce

Wan Ilaika Mohd [email protected] KUALA LUMPUR: Small and medium enterprises (SMEs) that do not get involved in e-commerce will be left behind in the global marketplace, Malaysian International Chamber...

KUALA LUMPUR: Small and medium enterprises (SMEs) that do not get involved in e-commerce will be left behind in the global marketplace, Malaysian International Chamber of Commerce and Industry (MICCI) president Datuk Wira Jalilah Baba said.

According to Malaysia Digital Economy Corporation, only about 10% of SMEs in Malaysia were involved in e-commerce in 2015.

“We need a mind-changing capability among SMEs as well as other local companies. Only those who adopt technology will be able to sustain their capabilities and market share,” she told reporters at the fourth Industrial Revolution conference and dialogue here yesterday.

“I would like to urge SMEs to constantly innovate and adopt technology so that they will not be left behind. Otherwise they might have to close shop,” she added.

Earlier, Dr V. Siva Balasingam, head of econometrics at the fiscal and economics division of the Finance Ministry, said SMEs’ contribution to the country’s gross domestic product (GDP) currently is still less than 50%, although it makes up 90% of businesses in Malaysia.

Tax consultant Desmond Anil, managing director at Hernancres Tax Consultancy Sdn Bhd, said the way of doing business should differ from before, as technology has transformed many industries.

“Our business models must evolve and we have to adopt adaptive thinking. We see many potential opportunities and challenges in the fourth industrial revolution for the SMEs and start-up communities.

“The revolution is happening as we speak and if we sit and wait, we will not reap its rewards,” he added.

However, IronHorse Asia Sdn Bhd founder and principal consultant Stan Singh noted that entrepreneurs need to be certain on their objectives, with plans and strategies in hands, before they step into the e-commerce space.

“They need to know whether it is time to adopt. They need to know whether they have the infrastructure to adopt e-commerce into their (business) strategy. They also need to know which customers they would like to address,” he said.

On the Goods and Services Tax (GST), Jalilah said its implementation should translate into cost savings for businesses, but that has not happened because businesses are not being honest in following the rules. This resulted in costs being added at multi levels and customers end up paying more.

“GST is a good system. The introduction of GST is to replace the services tax. The services tax was 10%, while GST is just 6%. By right, it should be a cost savings for all businesses,” she said.

On a separate matter, Anil said abolishing GST would disrupt and upset businesses because they had invested in a lot of software and probably spent millions of ringgit to be GST-compliant.

The conference, jointly organised by MICCI and Hernancres, was aimed at highlighting developments in e-commerce in Malaysia and how businesses can seize opportunities at the global stage during these challenging times.

 

Source: The Sun Daily

 

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Jan 2017 16

Bank Negara unit reduces number of MSB licensees

KUALA LUMPUR:Bank Negara Money Services Business Regulation Department has managed to reduce the number of Money Services Business (MSB) licensees from 1,000 in 2012 to 354 in 2016.MSB, which comprises remittance, currency...

KUALA LUMPUR:Bank Negara Money Services Business Regulation Department has managed to reduce the number of Money Services Business (MSB) licensees from 1,000 in 2012 to 354 in 2016.

MSB, which comprises remittance, currency exchange as well as wholesale business, is regulated by the Money Services Business Act 2011, was a game changer which gave the central bank authority to clean up the industry.

Its director Nik Mohamed Din Nik Musa said it gave the central bank the opportunity to re-license the entire industry.Only capable ones with good governance, good system and book keeping had the potential to grow were allowed to operate, he said.

Nik Mohamed Din said it needed to weed out operators which don’t do business in a proper manner, as the shrinking of the numbers of licence holders was partly due to heighten competition, the need to modernise the business and more capital gains.

“For those businesses which are relatively small and do not have the ability to compete, decide to be agents,” he said on the sidelines of “Karnival Kewangan 2017” yesterday.

Nik Mohamed Din said the legitimate and secured mode of money services was reflected by the growth of authorised MSB channels. – Bernama

“From 2012 to 2015, industry registered double-digit growth in the remittance and currency exchange segments, averaging at 23.8 per cent and 14 per cent per annum, respectively,” he said.

The industry also experienced two-fold expansion in the number of access points to MSB services, with branches and agents of licensed MSB companies increased from 1,437 in 2012 to 2,570 in 2016.

Meanwhile, companies providing mobile and/or online remittance services also rose from four establishments in 2012 to 10 establishments this year.

Moving forward, Nik Mohamed Din said, MSB’s priorities were to drive an e-remittance initiative by leveraging on financial technologies and innovative safeguards from the adoption of regulatory technologies.

“MSB would also focus on heighten legislative and enforcement framework to enable BNM to undertake swifter and more effective enforcement actions; promote stronger compliance culture and leverage on the use of data analytics to support its surveillance and monitoring activities,” he said.

Source: BERNAMA

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Jan 2017 13

Leading hub for Islamic fund and management

KUALA LUMPUR: The Securities Commission (SC) has unveiled a five-year strategic blueprint to establish Malaysia as a leading hub for Islamic fund and wealth management globally.SC chairman Tan Sri Ranjit Ajit Singh said that...

KUALA LUMPUR: The Securities Commission (SC) has unveiled a five-year strategic blueprint to establish Malaysia as a leading hub for Islamic fund and wealth management globally.

SC chairman Tan Sri Ranjit Ajit Singh said that the regulator would continue to pursue strategies to further the development of the Islamic capital market at domestic and international levels.

“The blueprint represents Malaysia’s focused and concerted efforts in leveraging its well-established Islamic fund management industry to grow the wealth management segment.

“It will also drive greater internationalisation of the Islamic fund and wealth management industry through enhanced cross-border capabilities and connectivity,” he said at the launch of Malaysia’s Islamic Fund and Wealth Management Blueprint here yesterday.

 

“Malaysia’s capital raising figures for 2016 showed that close to RM100bil was raised through the capital market through bond issuances, initial public offerings (IPO) and secondary fundraising. Our estimates show a figure of about RM105bil to be raised this year,” he added.

In conjunction with the launch of blueprint was the International Fund Forum 2017 which was also organised by the SC. The forum featured prominent market strategists and senior representatives from various fund houses and was attended by over 300 international and domestic industry stakeholders.

During an investment roundtable, a panel of industry experts emphasised the need towards sustainable and responsible investing (SRI) and stressed the importance of SRI to the financial industry.

“SRI is fundamental to growth in the region and the health and stability of our financial systems. It is a fundamental in the way we invest,” said United Nations Principles for Responsible Investment, head of Asia, Jessica Robinson.

In another panel, discussions centred on macro-economic issues such as the global economic outlook for 2017-2018. “Emerging market equities will be up by 8% to 10%” said BNP Paribas, senior economist, Chi Lo.

“Oil prices will stay in the range of US$40 – US$50 and not move much” added BlackRock, lead product strategist for the Asian equities team, Jonathan Reoch.

 

Source: The Star

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Jan 2017 11

Mixed views on 2017 economic growth

Eva Yeong and Lee Weng KhuenKUALA LUMPUR: After a turbulent 2016, economists have mixed views on Malaysia’s economic growth for 2017, with gross domestic product (GDP) growth forecasts differing on whether the economy...

Eva Yeong and Lee Weng Khuen

KUALA LUMPUR: After a turbulent 2016, economists have mixed views on Malaysia’s economic growth for 2017, with gross domestic product (GDP) growth forecasts differing on whether the economy either performing better or worse than 2016.

RAM Ratings economist Kristina Fong expects the economy to see better growth of 4.5% this year against an estimated 4.2% last year, driven by better labour conditions, resilient domestic demand and wage growth.

“We also see upside in the trade indicators, which points to some stabilisation in the external demand,” she told reporters at a media briefing on the RAM Business Confidence Index yesterday.

However, Standard Chartered Bank head of Asean economic research Edward Lee is less optimistic with a slight cut in growth forecast to 3.8% from 4% previously.

“The slight moderation is mainly from the consumer side. I do see the softening in the labour market and of course the pick up in inflation side,” he told reporters at the bank’s Global Research Briefing 2017 yesterday.

Lee said he is cautious about the economic performance this year due to the pick up in unemployment rate and inflation, and slow down in employment growth, which are expected to eat into real wage growth and consumption.

Although consumption held up a lot better than expected last year, lending huge support to growth, Lee said consumer spending was partly due to one-off measures like the voluntary cut in EPF contribution and minimum wage hike.

“I think the wealth effect has been slowly easing off over the last one to two years for example, the property market. While it is still a positive year-on-year in terms of price increase, that increase has been slowing down. On consumption, I don’t think it is going to remain as strong but will still be a big contributor to growth,” he added.

He said consumption is likely to slow down towards the second half of 2017 (2H17), which leads to his expectation of a 25 bps interest rate cut in May.

“Looking at 2H17, we have a higher base in terms of consumption from 2H16. From that perspective, if labour market conditions continue to weaken for example, we are going to have a higher base and depending on other things, it may actually necessitate a rate cut,” he said.

However, he noted that his forecast of an interest rate cut could be delayed beyond May this year if interest rate volatility is too high.

RAM Ratings’ Fong however, expects the central bank to maintain the Overnight Policy Rate at 3% on the back of improving growth expectation and volatility in currency exchange rates.

“We think it is more optimal for the interest rate to stay at the current level,” she said.

On the currency front, she said the ringgit continues to be volatile, particularly in the first half of the year. The local currency is expected to average between 4.0 and 4.5 against the US dollar for 2017.

“The wider range does represent the external volatility that we expect for this year. It could hover above 4.5 during some time with increased volatility,” she opined.

Meanwhile, Standard Chartered Bank FX Strategist for Asean and South Asia Divya Devesh expects the ringgit to weaken to 4.6 against the greenback by June this year, before retracing to 4.3 early next year.

He said the ringgit can remain under pressure in 1H17 as it has become disconnected from fundamentals due to the deterioration in market liquidity and onshore corporate behaviour.

“Exporters have been reluctant to sell dollars for the past year or two. That has made onshore demand-supply extremely one-sided,” he said.

However, he does not expect the ringgit to weaken further than 4.6 as Malaysia’s fundamentals are still strong and valuations remain attractive.

 

Source: The Sun Daily

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Jan 2017 10

Equity market kicks off 2017 on a good note

PETALING JAYA: The Malaysian equity market welcomed the new year on a positive note with a net amount of RM101.8 million transacted by foreign investors on Bursa Malaysia in the first week of the year compared with RM31...

PETALING JAYA: The Malaysian equity market welcomed the new year on a positive note with a net amount of RM101.8 million transacted by foreign investors on Bursa Malaysia in the first week of the year compared with RM31.2 million sold in the last week of 2016.

“This could be attributable to the general inflows into Asia last week and supported by Malaysia’s encouraging trade numbers which saw an uptick in exports by 7.8% year-on-year in November,” MIDF Research said in its fund flow report yesterday.

According to data released last week, exports were higher by 7.8% year-on-year while the KLCI was up 2.06% on-week to 1,675.49 and the ringgit was stronger by 0.31% at 4.4725.

“On a net daily basis, foreign investors were seen buying on Tuesday and Friday, with the bulk on the latter day of RM136.4 million. Attritions on Wednesday and Thursday were identical at RM28.2 million,” said MIDF Research.

Meanwhile, retail investors’ gross participation rate continued to expand for its second week in a row to RM596.1 million from RM429.6 million in the prior week, despite the buying on dips conviction, which has turned negative for the second week to RM123.3 million compared with the prior week of RM68.8 million.

Institutional investors’ gross participation rate improved for the second week in a row to RM2.06 billion from RM1.92 billion in the prior week.

 

Source: The Sun Daily

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Jan 2017 9

Najib: Rising commodity prices sign of better times in 2017

PUTRAJAYA, Jan 9 — Recovering commodity prices indicate that Malaysia’s economy may improve this year, Prime Minister Datuk Seri Najib Razak said today.Speaking to civil servants at the monthly Prime Minister's Department...

Najib pointed that prices of crude oil, palm oil and rubber had all increased compared to 2016 prices. — File pic

PUTRAJAYA, Jan 9 — Recovering commodity prices indicate that Malaysia’s economy may improve this year, Prime Minister Datuk Seri Najib Razak said today.

Speaking to civil servants at the monthly Prime Minister's Department assembly, Najib pointed that prices of crude oil, palm oil and rubber had all increased compared to 2016 prices.

"Looking at the global scenario and the big picture, 2016 was a very challenging year," he said.

"But there is hope now the situation will improve in 2017," he added.

Source: Malay Mail 

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Jan 2017 6

TPP necessary to stimulate sluggish global economy - HSBC

BY RUPA DAMODARAN   KUALA LUMPUR: The Trans Pacific Partnership agreement is a “low hanging fruit” which can stimulate the global economy, and it pays for the United States to participate in it, says senior...
BY RUPA DAMODARAN

 
 
 
KUALA LUMPUR: The Trans Pacific Partnership agreement is a “low hanging fruit” which can stimulate the global economy, and it pays for the United States to participate in it, says senior trade economist Dr Douglas Lippoldt of HSBC Bank plc. 
 
The fate of the TPP, which was signed in Feb last year, hangs in the balance due to recent comments by US president-elect Donald Trump that US will withdraw from the pact on his first day in office. "I am hopeful that if it withdraws on the first day of the Trump administration, the US will revisit (the TPP) in the coming months and find a way to reengage with the rest of the 11 partners," said Lippoldt in a teleconference on Asia's trade outlook in 2017. Apart from the US, the TPP grouping includes Australia, Brunei, Canada, Chile, Japan, Mexico, Malaysia, New Zealand, Peru, Singapore and Vietnam.
 
Describing the 30-chapter document as a “remarkable standard”, Lippoldt, who was formerly with the OECD, said it would address many concerns arising from globalisation, including labour standards and the environment. Negotiations over the past five years have yielded a high standard trade agreement involving a mix of six emerging market countries and six developed countries and spanning four continents. According to studies undertaken by Peterson Institute, it was estimated that the 12 partners stood to gain 10 per growth in GDP from the TPP. "That is an important development, as it would see the US gain in absolute terms, but in percentage terms, countries like Vietnam and Malaysia could stand to gain by 8 and 7.5 per cent respectively, with access to NAFTA (markets), Japan, Australia, New Zealand, Peru and Chile." Lippoldt said that many representatives of the participating countries have expressed their views that it would not be feasible to proceed with the trade pact without the US anchoring the agreement.
 
This is because they had made deep concessions to liberalise their respective domestic markets because they had expected to gain market access into the US in exchange. The Regional Comprehensive Economic Partnership (RCEP), which is currently being negotiated, is less ambitious and does not deal with the `trade plus' issues, although the countries will enjoy economic gains across the region, he noted. Asia should continue to pursue for both multilateral trade agreements. "Who knows, with the conclusion of the RCEP, it (may) prompt the TPP countries to reconsider the agreement, as there is an overlap of countries in both agreements." Malaysia, Vietnam, Singapore, Brunei, New Zealand, Australia and Japan are participants in both agreements which, when concluded, could achieve US$1.9 trillion in GDP. On the outlook for 2017, Lippoldt said while protectionist sentiment is rising in the US and some EU countries, Asia still broadly supports trade. Other initiatives underway, such as the Belt and Road Initiative, regional infrastructure investment (the Asia Infrastructure Investment Bank and the Asian Development Bank), the Asean Economic Community Blueprint 2025, the WTO Information Technology and implementation of the WTO Trade Facilitation Agreement (cutting red tape at the border) will enable Asia to take a lead role in the global trade agenda.
 
 
Source: New Straits Times
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Jan 2017 5

Arrest warrant for Yap over Transocean insider trading

It was learnt that the Securities Commision (SC) had obtained the warrant of arrest for the 46-year-old woman from the court. The warrant of arrest was for “purposes of criminal prosecution against the above individual (Yap...

It was learnt that the Securities Commision (SC) had obtained the warrant of arrest for the 46-year-old woman from the court.  The warrant of arrest was for “purposes of criminal prosecution against the above individual (Yap) for offences under the securities laws”, according to a notice by the SC, published yesterday

It was learnt that the Securities Commision (SC) had obtained the warrant of arrest for the 46-year-old woman from the court. The warrant of arrest was for “purposes of criminal prosecution against the above individual (Yap) for offences under the securities laws”, according to a notice by the SC, published yesterday

 

PETALING JAYA: A warrant of arrest has been issued against Yap Lee Lee, said to be behind alleged insider trading involving shares of Transocean Holdings Bhd six years ago.

It was learnt that the Securities Commision (SC) had obtained the warrant of arrest for the 46-year-old woman from the court.

The warrant of arrest was for “purposes of criminal prosecution against the above individual (Yap) for offences under the securities laws”, according to a notice by the SC, published yesterday.

In an earlier statement by the SC, issued on Dec 8, 2015, Yap was said to be one of the account holders who had acquired Transocean shares by Tan Swee Hock, a former director of the company.

Tan and two other individuals, namely Chan Sze Yeng and Cheng Seng Chow, had been charged by the SC for insider trading in 2015.

Tan, 62, was charged at the KL Sessions Court for acquiring 632,700 units of Transocean shares between Aug 20, 2009 and Nov 6, 2009 while allegedly in possession of material non-public information.

The SC alleged that the material non-public information referred to in the charges relates to the proposed takeover offer by Kumpulan Kenderaan Malaysia Bhd of Transocean shares.

The takeover offer was announced to Bursa Malaysia on Nov 6, 2009.

Meanwhile, Chan and Cheng were both charged for abetting Tan in the commission of the said offences.

The statement dated Dec 8, 2015, said that after claiming trial to the charges, Tan, Chan and Cheng were each granted bail of RM200,000 with one surety and also ordered to surrender their passports.

The offence carries a jail sentence not exceeding ten years and a fine of not less than RM1mil, it said.

On Nov 10, 2009, shares in Transocean surged to their highest level in five years after substantial shareholder Kumpulan Kenderaan offered to buy out minority shareholders at RM1 per share.

Yesterday, shares in Transocean closed unchanged at 41 sen. The company has businesses in transportation and logistics.

 

Source: The Star

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Jan 2017 4

Fintech’s biggest winner – the consumer

BY RISEN JAYASEELANBanks fear the large tech companies such as Alibaba more than they do the fintech start-ups. - ReutersIT is true that there is some level of hype surrounding fintech, not unlike the dotcom boom of...

BY RISEN JAYASEELAN

Banks fear the large tech companies such as Alibaba more than they do the fintech start-ups. - Reuters

Banks fear the large tech companies such as Alibaba more than they do the fintech start-ups. - Reuters

IT is true that there is some level of hype surrounding fintech, not unlike the dotcom boom of yesteryears.

But that aside, the beauty of fintech is that it is going to result in consumers getting faster, cheaper and easier to use financial services. Who doesn’t want that? Here’s a sample of the kind of consumer benefits the fintech revolution is likely to bring about to consumers in Malaysia and we should see some shoots of these innovations in 2017.

Note that some of these innovations are being developed by fintechs independently, or in collaboration with established financial institutions or by the institutions themselves. As one senior digital officer of a large bank explained to me recently, it is thanks to the fintech movement that banks are dedicating more resources to digital intiatives. Also to be noted is that banks fear the large tech companies (such as Facebook, Amazon, Alibaba and Google) more than they do the fintech start-ups.

This is probably why we will see more collaborations between banks and the big tech firms, beginning in the area of payments. In any case, here’s why the consumer – both individuals and corporations – should be heralding fintech.

 

Cheaper remittances

Charges for cross border transfers are on a downward spiral. In fact, a global race has began to provide cheaper, faster and safer cross border remittances.

Just recently, Malaysia’s largest bank Malayan Banking Bhd (Maybank) launched a digital remittance service in Malaysia with global player Western Union. The service will run through Maybank2u mobile banking app, enabling customers to transfer money to more than 500,000 Western Union agent locations in over 200 countries and territories. Even before Maybank’s launch, there is local firm Merchantrade Asia, which provides a service called eRemit which offers something similar.

Then there are the fintechs, seeking to drive costs down even lower, by providing matching services to parties wanting to transfer funds. The idea is for both sides to enjoy better exchange rates than what banks and even money changers offer. Homegrown start-ups like MoneyMatch are creating their own platforms to match individual buyers and sellers of currencies. They are likely to ramp up their service to cater to the SME market which do a lot of cross border transfers in the normal course of business.

There are also global fintechs which target this space and which will be reaching our shores soon. UK-based TransferWise, which began in 2011 and today moves US$10bil a year through its platform, plans to launch in Singapore and Hong Kong after starting its Japan business in last September. Telcos are also inching into this space, considering they have a vast existing customer base to offer remittance and forex services

Robo advisory

This is where software is meant to bring investment advice to the masses in a cheap and efficient manner. Sort of bringing the private banking suite to the masses. Will it work? Why not, if it means giving basic, cheap and easily accessible advice for those willing or interested in investing small amounts of money.

The platform provider though would have to gain the confidence of investors and prove they can deliver on decent financial advice and returns for investors. This space is going to get more traction as the Securities Commission (SC) is close to releasing the guidelines for parties interested in applying for a licence to operate robo advisory services in Malaysia. Among the more notable robo players in mature markets are Betterment (which hit an asset under management figure of US$5bil last July) Acorns (which offers an app targeted at young investors, allowing users to deposit small amounts in a brokerage account that automatically buys a diversified group of exchange-traded funds) and Nutmeg (that allows an investor to play around with an account without any real money).

Insurance

Digital innovations are having a significant impact on the insurance sector, largely because of its very consumer focused offerings. In Malaysia, it is still in its nascent stage although a few start-ups have been making some inroads. Among the services that digital insurance platforms are seeking to offer are insurance comparison services for areas such as travel, car and health insurance products and platforms that seek to provide customers with the ability to buy insurance products directly, cutting out the middlemen and brokers. Some are seeking to be more collaborative.

Consider GetCover Sdn Bhd which will soon launch GetCover, a free mobile application that allows users to buy motor insurance directly from insurers. It is expected to be the first of its kind in the market.

GetCover’s aim is to leverage on the efficiencies of digital distribution channels to benefit end-consumers.

The idea is to make it easier for consumers to research insurance products available in the market and for providers to streamline operations and save distribution costs.

Peer to peer lending

If you were an SME looking for debt funding to grow your business, you are in luck. Coming soon will be six technology-based platforms that have been licensed to match investors with SMEs looking to raise debt. All six will be quickly seeking to build their portfolio of borrowers and this can only be good news for SMEs, who now no longer have to rely on banks (that sometimes tend to avoid the smaller sized loan segment).

SMEs also now have a better option than turning to unlicensed money lenders or loan sharks. A few banks are believed to be backing some of the P2P players, which should boost the sustainability of these platforms. It is left to be seen if these platforms will attract sufficient number of investors, such as high net worth individuals.

Watch the fintech sandbox

As we know, the fintech space is a highly regulated one. Regulators will play a key role in the success or failure of fintech initiatives. In this regard, a close eye ought to be kept on the sandbox that Bank Negara Malaysia will be starting soon. Companies selected to participate have a high chance of getting legitamised to run their fintech offerings, although there’s nothing to stop those not participating to later apply for a licence to operate. The idea of the fintech is to see how these fintech operations impact the market and from it clearer rules will emerge for regulators to impose on players.

 

Source: The Star

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