TNG Digital gets SC nod to directly distribute capital market products

'With the approvals behind us, we will now focus on ensuring the user experience is best-in-class as we move towards a launch,” said TNG group CEO Effendy Shahul Hamid

KUALA LUMPUR: Touch 'n Go Group's (TNG) subsidiary TNG Digital Sdn Bhd has been granted conditional approval to operate as a recognised market operator (RMO) by the Securities Commission.

It said in a statement that the conditional approval will enable it to directly distribute capital market products, including money market unit trust funds, through the Touch 'n Go eWallet platform without having to be directed to third-party applications.

TNG group CEO Effendy Shahul Hamid said the RMO status will allow it to bring a string of innovative digital offerings to its users.

The group aims to disrupt the status quo and will be launching a financially inclusive investment product in the first quarter of the year, allowing users to access basic investment services for as low as RM10.

“We feel that this offering will add significant value to our large payments and transportation user base and continue our evolution into financial services.

"We aim to make this an extremely seamless and frictionless offer to Touch ‘n Go eWallet users. With the approvals behind us, we will now focus on ensuring the user experience is best-in-class as we move towards a launch,” he said.

The proposition is a collaboration between TNG and fund management company Principal Asset Management, combining the platform development, technology and data expertise of Touch ‘n Go eWallet and Principal’s expertise in investment strategy and fund management.

Using Touch ‘n Go eWallet as a delivery platform also supports the nations digital and cashless agenda; as well as support financial inclusion, it said.