Digistar gets conditional nod for money lending licence

  • Banking
  • Wednesday, 10 Sep 2014

PETALING JAYA: Digistar Corp Bhd has received the conditional approval for a money lending licence from the Urban Wellbeing, Housing and Local Government Ministry.

The information and communications technology and property development firm said in its filing with Bursa Malaysia that its unit Nielsen Ward Sdn Bhd received the letter from the ministry yesterday.

The company has three months to fulfil the conditions imposed in the ministry’s letter dated Aug 20, 2014.

Chief executive officer Datuk Wira Lee Wah Chong told StarBiz that the conditions imposed by the ministry were straightforward and relatively simple, such as setting up an office.

“The money lending licence will complement our existing businesses,” he added.

The licence could come in handy when potential buyers of Digistar’s property in Malacca are limited with the certain thresholds banks can impose.

The Heritage, Digistar’s RM150mil gross development value serviced apartment project in Malacca, has seen a 70% take-up rate and is to be opened in November. The remainder 30% is to be rented out for recurring income.

Additionally, the licence can be used to help Digistar set up more central monitoring system (CMS) centres throughout Malaysia, including in rural areas.

Last week, it acquired a 70% stake in Protecs A & A CMS Sdn Bhd, which gives the company immediate access to a customer base of 5,000.

Digistar is on the lookout to acquire two or three more CMS providers to increase its customer base, in order to hit 500,000 subscriptions in five years.

The company’s CMS, Panther 911, was launched earlier this year. It offers 24-hour undisrupted household or commercial building security monitoring via an Internet protocol-based platform.

In the past two years, Digistar has spent RM5mil to develop Panther 911 and set up four command centres in Kuala Lumpur, Penang, Malacca and Johor.

Lee expects the money lending licence to start contributing towards group revenue by the end of Sept 30, 2015.

“We are very excited and positive on it,” he said.

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