Digital bank licences: Terengganu PKR wants bumi 'imbalance' addressed

 

Terengganu PKR has urged Prime Minister Ismail Sabri Yaakob and Finance Minister Tengku Zafrul Abdul Aziz to address the "imbalance" in awarding digital bank licences.

In a statement today, Terengganu PKR chief Azan Ismail (above) said the government's choice of five licence recipients would badly affect bumiputera equity ownership goals.

"If there are no interventions, there is a risk... the share of (bumiputera) equity ownership will be reduced.

"We urge the finance minister and prime minister to state their stand on this matter and what will guarantee bumiputera equity ownership," he said.

Azan is the second major PKR figure, after secretary-general Saifuddin Nasution Ismail, to publicly scrutinise the award of the digital bank licences through a racial lens.

Saifuddin Nasution Ismail

Saifuddin claims that only one of the five licensees is considered "bumiputera". Malaysiakini cannot independently verify this claim.

According to Bank Negara Malaysia, three out of the five licensees were majority-owned by Malaysians - Boost Holdings and RHB Bank, Sea Ltd and YTL Digital Capital, as well as KAF Investment Bank.

Government-controlled funds are substantial shareholders of both Boost and RHB Bank.

Proponents of digital banks believe that this industry - which is in its infancy - could cater to customers who were underserved by traditional banks and reduce transaction costs.

All licensees need to maintain capital of RM100 million at all times for the first five years before increasing it to RM300 million.

Failure to do so will trigger an exit plan that is cited in the licence clause. - Mkini