SINGAPORE, 29 JUNE: Sunway Bhd, a Malaysian conglomerate, has partnered with Tencent-backed Chinese fintech startup Linklogis Inc and Bangkok Bank PCL to apply for a Malaysian digital bank license, according to two persons familiar with the situation. Sunway would own a majority position in the company, according to the sources, who asked to remain anonymous because the consortium members’ names have not been revealed.
The group will compete against a competitive field of applicants for one of just five licenses available in the Southeast Asian country.
After Singapore, the Philippines, Hong Kong, and other Asian countries, Malaysia is the latest to embrace online-only banking services, with the advent of technology businesses shaking up their traditionally staid sectors.
Maybank, CIMB Group Holdings, and Public Bank Bhd are the three largest banks in Malaysia.
The central bank of the country has stated that it will award up to five licenses by early 2022, with applications due by the end of this month.
Sunway, which operates in the property, healthcare, and education sectors, alluded to a statement released earlier this month in which it stated it would apply for an online-only banking license with partners to develop in the fintech industry, but did not name them.
Sunway owns and operates an internet remittance company, as well as a subsidiary that lends money to other businesses. It also owns a majority stake in Credit Bureau Malaysia.
Linklogis, a supply chain finance firm based in Hong Kong, declined to comment and said it will share further information with the market “at the proper time.” Tencent, the Chinese computer juggernaut, is the company’s largest stakeholder, owning roughly 15% of the company.
Tencent did not respond to a request for comment.
Linklogis was part of a group that was granted a digital wholesale bank license in Singapore. The bank is expected to open in 2022.
A Reuters question submitted to Bangkok Bank on Tuesday received no immediate response. Continue reading
