Bank Negara gives approval for Touch ‘n Go-Alipay joint venture

PETALING JAYA: CIMB Group Holdings Bhd’s subsidiary Touch ‘n Go Sdn Bhd has been given the green light by Bank Negara Malaysia (BNM) for the incorporation of a joint venture entity with Ant Financial Services Group’s Alipay, named TNG Digital Sdn Bhd.

The board of directors of CIMB Group said in a Bursa Malaysia filing that it had received the central bank’s approval in a letter dated Nov 8.

Touch ‘n Go will be the majority shareholder of TNG Digital, whereas Alipay will participate as a minority shareholder.

In a previous announcement on July 24, CIMB said the joint-venture will leverage the respective partners’ local market insights, technology capabilities, market experience, and brands to introduce a world-class mobile platform for payments and other financial services which will directly supplement Malaysia’s efforts in accelerating the creation of a robust and secure digital payment infrastructure.

The capital injected by both parties will go towards the creation of a world-class online and offline payments provider which will deliver superior mobile wallet solutions and other related financial services.

CIMB Group’s shares closed 0.81% lower to RM6.13 with some 7.82 million shares done.