CN Asia, Intcys to set up women’s digital bank

The group will endeavour to invest up to RM400m to establish the proposed banking business

By AZALEA AZUAR / Pic BERNAMA

CN ASIA Corp Bhd proposed to set up a MyWEW (women empowering women) Digital Bank after signing a memorandum of understanding (MoU) with Intcys Sdn Bhd.

MyWEW is a Malaysian-based social enterprise targeted at women’s empowerment, specifically in the economic sector.

The proposed digital bank will focus on the women’s market by aiding them in obtaining digital banking services, including entrepreneurial financing, micro-loans, applying for debit and credit cards and the opening of digital bank accounts, a CN Asia release yesterday noted.

The partners will first apply for a licence to be a digital bank from Bank Negara Malaysia (BNM) to undertake the microcredit lending activities, a CN Asia exchange filing yesterday noted.

The central bank, at the end of last year, called for bids from interested parties to undertake digital banking (conventional and Islamic banking) by June 30 this year.

Women are one of the most vulnerable groups affected by the Covid-19 pandemic as many have struggled with job loss or are unable to conduct businesses as usual.

As a result, many of them are facing significant financial constraints and have to look for other sources of income.

CN Asia stated that it will endeavour to invest up to RM400 million to establish the proposed banking business.

MyWEW advisor and Pengerang MP Datuk Seri Azalina Othman said the digital banking business that caters for women is a niche market that should be encouraged to help all ladies in the country.

“Through such digital banking products, low-income women in the country will be able to access the convenience of online banking to conduct business through smartphones, increase their income and improve the family financial situation,” she said in a statement yesterday.

Intcys director Wan Nurliyana Abdul Rahman said the MoU’s, which is for a one year period, objective was to apply for the requisite licences from BNM.

“CN Asia sees digital banking as a future trend. When BNM opened up its licence application, we believe it was a wise business move forCNAsiatohaveagoatthe MyWEW Digital Bank,” said CN Asia ED Chang Chee Ching.

CN Asia and Intcys plans to develop a feasible business model and formulate a proposal to grant microcredit facilities.

CN Asia, via its wholly-owned subsidiary, Chip Ngai Engineering Works Sdn Bhd, is principally involved in the manufacturing and trading of underground tanks, pressure vessels, road tankers and pipings for the petroleum industry, and is also involved in specialised civil engineering works.

CN Asia’s share price rallied from 59 sen in early December 2020 to close at RM2.37 yesterday, giving the company a market value of RM130 million.