Touch n’ Go’s subsidiary, TNG Digital has been given the green light by the Securities Commission of Malaysia (SC) to sell investment products, like money market unit trust funds, through the Touch ‘n Go e-wallet platform without having to be directed to third-party applications.
In formal legalese, the SC granted conditional approval to TNG Digital to operate as a Recognised Market Operator (RMO). TNG Group hailed the development as an industry milestone as the e-wallet is the first in Malaysia to obtain this approval.
“The RMO status will allow us to bring a string of innovative digital offerings to our 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,” said Effendy Shahul Hamid, CEO of TNG Group.
This represents a significant expansion and evolution of TNG’s services, having begun in 1996 with a focus on cashless payment for highway tolls. Last year in May, it already expressed interest when the SC said it would allow e-wallet providers to sell investment products.
TNG’s determined pivot into financial services is made possible by its partnership with Principal Asset Management, one of Malaysia’s biggest fund management companies. TNG will handle the platform and technological side of things, while Principal will provide its expertise in investment strategy and fund management.
No launch date for this service has been announced yet, but TNG has promised to reveal more details about this soon.