KUALA LUMPUR and HANGZHOU – July 24, 2017 – CIMB Group Holdings Berhad (“CIMB”) today announced that its subsidiary Touch ‘n Go Sdn Bhd (“TNG”) will enter into an equity Joint Venture (“JV”) with Ant Financial Services Group (“Ant Financial”), parent company of Alipay and the world’s leading digital financial services provider. The JV 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, directly supplementing Malaysia’s efforts in accelerating the creation of a robust and secure digital payment infrastructure.
TNG and Ant Financial today signed definitive agreements towards the formation of a JV, in which TNG will be the majority shareholder and Ant Financial a minority shareholder. The capital injected by both parties will go towards the creation of a world-class online and offline payments provider, delivering superior mobile wallet solutions and other related financial services. This is Ant Financial’s first investment in Malaysia. The JV transaction is subject to closing conditions and the required regulatory approvals.
Currently, millions of users across Malaysia use Touch ‘n Go cards daily for electronic payment purposes at toll roads, public transportation systems, parking and retail outlets The new e-wallet will give current and new TNG users access to more services conveniently, on their mobile phones, including for e-commerce.
Ant Financial provides a wide range of digital financial services to over 450 million users in China and beyond. Through its flagship lifestyle super-app Alipay, users can enjoy a cashless daily life in and outside China. Users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make doctors’ appointment, purchase wealth management products and manage their finances. Over 8 million brick-and-mortar merchants now accept Alipay across China. Ant Financial is enabling local partners in India, South Korea and Southeast Asia to provide digital payment and innovative financial services to local users.
Tengku Dato’ Sri Zafrul Aziz, Group CEO, CIMB Group said, “This is a landmark deal, premised on a clearly synergistic partnership. TNG’s leading position combined with Ant Financial’s Alipay capabilities will allow all Malaysians to participate and access secure payments and digital financial services for the long term.” Tengku Zafrul also added, “This fits nicely with CIMB’s digital aspirations and our FinTech agenda, as we move towards a more inclusive and digitized Malaysia.”
Malaysia is the first country to join the Electronic World Trade Platform (eWTP), a program initiated by Alibaba Group Executive Chairman and Founder Jack Ma to help Small to Medium-sized Enterprises (SMEs) expand their trading capabilities worldwide more easily, directly demonstrating the nation’s enthusiasm in embracing technological innovation.
“Along with the launch of the JV, individuals as well as SMEs will be able to benefit from the development of technology. They will be able to purchase or do business in a more convenient way, enjoying a broader range of services,” said Eric Jing, Chief Executive Officer, Ant Financial. He continued, "To bring digital financial inclusion to more people across the world, Ant Financial takes an approach of collaborating with strategic partners overseas and enabling them with its innovative solutions. Given TNG’s leading position in the market and vast customer base, we believe that we can help it to offer exciting and innovative products to Malaysian consumers. ”
Syahrunizam Samsudin, Chief Executive Officer of TNG, said, “We’re extremely happy to have been able to get this done. The work starts now and I look forward to collaborating closely with Ant Financial and the joint venture as it rolls out a set of leading edge payments services to consumers and businesses across the country.”
About Touch ‘n Go
Touch ‘n Go Sdn. Bhd. is owned by CIMB Group Holdings Berhad, MTD Capital Berhad and PLUS Expressways Berhad. TNGSB holds the intellectual property rights to the Touch ‘n Go system, which is the de-facto standard for contactless smartcards in Malaysia.
The Touch ‘n Go electronic payment system is the biggest multi-application e-purse, specialising in providing convenience for the public for their micropayment needs. Touch ‘n Go cards can be used as a mode of payment at retail outlets and parking, as the common ticketing system at major public transportation systems and the one and only electronic toll collections system.
Users also enjoy the convenience to reload their Touch ‘n Go cards at more than 9,000 reload points; on the highways, Touch ‘n Go Hubs and SPOTs, petrol stations, convenience stores and appointed retail outlets and agents.
About CIMB Group
CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is now present in nine out of 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar and Laos). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Sri Lanka, Korea, the US and UK. CIMB Group has the most extensive retail branch network in ASEAN of over 900 branches as at 31 March 2017. CIMB Group’s investment banking arm is also one of the largest Asia Pacific-based investment banks, offering amongst the most comprehensive research coverage of more than 1,000 stocks in the region.
CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 93.7% shareholder of CIMB Thai in Thailand.
CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM49.4 billion as at 31 March 2017. The Group has 39,000 employees located in 15 countries.
About Ant Financial
Ant Financial Services Group is focused on serving small and micro enterprises, as well as consumers. With the vision “bring the world equal opportunities,” Ant Financial is dedicated to building an open ecosystem of Internet thinking and technologies while working with other financial institutions to support the future financial needs of society. Businesses operated by Ant Financial Services Group include Alipay, Ant Fortune, Zhima Credit and MYbank. For more information on Ant Financial, please visit our website at www.antgroup.com or follow us on Twitter @AntFinancial.
If you have further queries or require more information, please contact:
Group Corporate Communications
Group CEO’s Office
CIMB Group Holdings Berhad
Tel: +603 - 2261 0638
Corporate Sales, Marketing and Communication
Touch ‘n Go Sdn Bhd
Tel: +603 2714 8139
Ant Financial Services Group
Tel: +86 1381 6896 301