KUALA LUMPUR (Dec 8): AirAsia Group Bhd is looking to clinch the final approval for its lending business BigPay by the first quarter of next year (1Q21). 

The group said it has already received provisional approval from the Housing and Local Government Ministry (KPKT) in mid-November to provide online loans under a community credit licence.  

"We hope to receive the final approval from KPKT in 1Q21, before we officially roll out lending services in Malaysia,” AirAsia said in a filing with Bursa Malaysia today.

The group added that it is also working on insurance and wealth management services that are expected to be rolled out in Malaysia next year, subject to regulatory approvals. 

AirAsia was responding to a news article by Bloomberg published on theedgemarkets.com yesterday, entitled "AirAsia 'quietly optimistic' about 2021 with focus on ASEAN".  

The report said AirAsia is applying for digital banking licences in Malaysia and two other countries in Southeast Asia. It quoted the group’s CEO Tan Sri Tony Fernandes as saying that the remittance business has been growing 50% a month and that the group will start lending in Malaysia in January, and is also working on insurance and wealth management. 

The article also mentioned that AirAsia is now focusing on expanding its base in Southeast Asia and is in discussions about starting three new airlines in the region.

In its filing today, AirAsia confirmed it is exploring opportunities for a local airline presence in IndoChina, as mentioned in its third quarter earnings press release recently. 

The Edge Malaysia weekly reported on Nov 30 that AirAsia was revisiting its plan to set up new local airlines in Indochina and has earmarked funds from its proposed capital-raising exercise to support these efforts.

Two years ago, AirAsia had announced plans to start a low-cost carrier in Vietnam and Myanmar. It was also reported to be on the lookout for a partner in Cambodia, but nothing materialised. 

Shares of AirAsia rose six sen or 7.32% to 88 sen today, with a market capitalisation of RM2.94 billion.