Tuesday 06 Jun 2023
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This article first appeared in The Edge Malaysia Weekly on January 16, 2023 - January 22, 2023

ManagePay Systems Bhd seems to have many things in its pipeline. The company started the new year with positive news that the Ministry of Local Government Development had granted it conditional approval to operate online money-lending activities under the Moneylenders Act 1951 (Act 400).

In its announcement to Bursa Malaysia, ManagePay did say the ministry’s approval is subject to “the conditions to be fulfilled by MRSB (ManagePay Resources Sdn Bhd) within six months ending July 8”. However, it did not disclose in the bourse filing the conditions that it is required to fulfil.

It would be difficult for investors to assess the ability of ManagePay to venture into the online lending business, even though this is material information that can move its share price in either direction.

Last Monday, the company unveiled another online venture.

ManagePay plans to cooperate with Hong Kong-based Eddid Financial Holdings Ltd to launch and market the latter’s internet-based mobile securities trading application in Malaysia. In the bourse filing, Managepay said it had signed a memorandum of understanding with Eddid Financial on Dec 28 with respect to the partnership.

“The intention of the MoU is to formally establish the partnership in Malaysia for Eddid ONE International version, a securities trading application developed by Eddid Financial, to be launched and marketed in Malaysia with the technical, regulatory compliance and marketing collaboration with ManagePay,” it said.

It is commonly known that an MoU has no legal and binding obligations. However, ManagePay did not mention that it would need a licence from the Securities Commission Malaysia to conduct online securities and futures trading activities.

Under the Capital Markets and Services Act 2007 (CMSA), any company that intends to carry out or undertake a business in a regulated activity, including online or through a trading app, is required to be authorised or approved by the SC. This applies to entities that may already be licensed or approved to undertake such capital market activities in other jurisdictions.

Again, this is crucial information for investors to assess the viability of such a venture by ManagePay.

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