Islamic Finance

Malaysia’s Green Packet, ZICO, M24 Tawreeq consortium applies for Islamic digital banking licence

A consortium comprising Green Packet, Zico Holdings and M24 Tawreeq has joined the race for one of Malaysia’s digital banking licences.

“The consortium’s application is focused on establishing an Islamic Digital Bank, which would include several other strategic collaborators that will further complement the products and value-added services to be offered by the consortium, augment its client servicing capabilities, and expand its customer base,” ZICO said in a regulatory filing on SGX on Tuesday (June 29).

Wednesday (June 30) is the deadline for submission to the central bank.

“The consortium merges Green Packet’s expertise in technological solutions, which includes a cashless fintech ecosystem designed for underserved communities, Zico’s proficiency in business and financial advisory as well as Shariah regulatory compliance, together with M24 Tawreeq’s understanding and experience in Shariah-compliant financial offerings tailored to the needs of the underserved micro SMEs segment in Malaysia,” said the statement.

The companies added that they intend to use their combined regional market presence to further their Islamic digital bank agenda in Malaysia and beyond in the future.

Green Packet was founded in California's Silicon Valley in USA, and listed on the Malaysian Stock Exchange in 2005. It is headquartered in Malaysia and has offices in China, Singapore, Hong Kong, and Taiwan. 

ZICO is incorporated in Labuan, Malaysia, and is listed on the Catalist Board of the Singapore Exchange, with a focus on Southeast Asia.

M24 Tawreeq is the first fully-digital Islamic factoring finance company in Malaysia.

Bank Negara Malaysia, the central bank, may issue up to five licences for digital banks by the first quarter of 2022.

Green Packet, Zico Holdings and M24 Tawreeq join Pertama Digital and its consortium as one of many applicants although there has so far been no confirmation from others, including the conglomerate Sunway and Tencent-backed Linklogis, and telco Axiata and RHB Bank.

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