TNG Digital Sdn Bhd’s GOPINJAM Launch Ceremony

OPENING SPEECH

YB SENATOR TENGKU DATUK SERI UTAMA ZAFRUL BIN TENGKU ABDUL AZIZ
MINISTER OF FINANCE MALAYSIA

TNG DIGITAL SDN BHD’S GOPINJAM LAUNCH CEREMONY

1 APRIL 2022 | Menara KEN, TTDI

SALUTATIONS

Bismillahhirahmannirrahim

Yang Berbahagia Datuk Mohd Nasir Ahmad
Chairman of CIMB Group

Yang Berbahagia Dato’ Abdul Rahman Ahmad
Group CEO of CIMB Group

Yang Berusaha Mr. Effendy Shahul Hamid
Group CEO of Touch ‘n Go Group

Yang Berusaha Mr. Alan Ni
CEO of Touch ‘n Go eWallet

Members of the Media

Distinguished Guests

Ladies and gentlemen

Assalammualaikum Warahmatullahi Wabarakatuh and a very good morning.

INTRODUCTION

1. First and foremost, I’d like to thank Touch ‘n Go Group for inviting me to today’s official launch of TNG Digital’s latest financial offering.
   
   
2. Well into 2022, Malaysia remains firmly on the path of recovery.
   
   
3. Our focus in managing the twin crises of health and economics remains on effectively managing the impact on individuals, households, and businesses.
   
   
4. The protection of lives and the healthcare system remain crucial, particularly in ensuring the safe resumption of social and economic activities.
   
   
5. Fast forward to today, Malaysia’s rate of growth and steadfast management of the pandemic are clear indicators of the economy’s recovery, especially as we transition to the endemic phase with international borders reopened today. This would provide much-needed momentum, as the economy is expected to grow by 5.3 to 6.3 percent this year, in line with projections by the IMF and World Bank.

ROLE OF TECHNOLOGY AND THE FINANCIAL COMMUNITY

Ladies and Gentlemen,

6. While we remain on the path of recovery, COVID-19 has profoundly changed the way we work, play, and interact with each other.
   
   
7. The last two years have accelerated some inevitable trends, ranging from how we make payments to how we consume financial products. For the full year of 2021, the total transaction value is 15 billion ringgit for the TNG eWallet.
   
   
8. Last year, the average Malaysian made 221 e-payment transactions, up from 150 in 2019.
   
   
9. Similarly, the mobile banking and e-money transactions grew at the fastest rate, where:
   
   
   1. Mobile banking transactions nearly quadrupled to 800 billion ringgit in 2021, from 203 billion ringgit in 2019; and
      
      
   2. With 47 non-bank e-money issuers, e-money transactions grew nearly 3-fold to 51 billion ringgit in 2021, from 18 billion ringgit in 2019.
      
      
10. These advancements show how consumers and merchants alike have quickly adapted to the new normal by adopting cashless transactions.
    
    
11. Of course, these developments would not be possible without the acceleration of technological adoption and the financial and payments industries’ role in promoting a digital and mobile-first mindset.

FINANCIAL SECTOR BLUEPRINT 2022 TO 2026

Ladies and Gentlemen,

12. As you are aware, BNM recently released the Financial Sector Blueprint 2022 to 2026, which will lay the groundwork for the financial sector’s development over the next five (5) years.
    
    
13. The Blueprint’s strategies will be critical for the financial sector to navigate the upcoming challenges and opportunities, complementing the Twelfth Malaysia Plan.
    
    
14. Amongst others, the blueprint outlines strategies for the use of technology and the introduction of innovative financial solutions to improve the well-being of Malaysians.
    
    
15. In particular, some broad themes include:
    
    
    1. Firstly, finance for all, characterized by:
       
       
       1. A wide range of options for customers, with most preferring digital solutions; and
       2. Confident and capable financial consumers in control of their finances as well as improved financial literacy.
          
          
    2. Secondly, we envision financing for transformation, with the following goals:
       
       
       1. Significant growth in alternative finance, including increased use of alternative data in addition to traditional metrics to promote inclusion; and
       2. A vibrant and dynamic financial landscape with healthy competition and a focus on continuous innovation to better serve customers.
          
          
16. Overall, the key expected outcomes by 2026 include:
    
    
    1. Rapid adoption of digital payments, with e-payments per capita increasing at a CAGR of more than 15 percent;
       
       
    2. Insurance and takaful penetration rate of between 4.8 to 5 percent (as a percentage of GDP);
       
       
    3. Doubling the number of individuals who have signed up for microinsurance or microtakaful;
       
       
    4. Consistent growth in alternative finance directed at new, innovative businesses; and
       
       
    5. Cross-border payments that are faster, cheaper, and more accessible.

BUDGET 2022 AND DIGITALISATION

Ladies and Gentlemen,

17. In pushing the ‘finance for all’ agenda, the Government recognizes that it is not only the availability of digital financial products that is important, but also access to those products.
    
    
18. In this regard, our aspirations for digital inclusivity will remain unfulfilled unless the necessary infrastructure is in place. Various measures in Budget 2022 will pave the way for Keluarga Malaysia and businesses to embrace digitalisation, and this policy is expected to continue in future Budgets.
    
    
19. On this front, key Budget 2022 measures include:
    
    
    1. 700 million ringgit for JENDELA, our nationwide digital connectivity initiative;
       
       
    2. 1 billion ringgit through BNM’s SME Automation and Digitalisation Facility;
       
       
    3. 150 million ringgit for the creation of digital content for the creative industry; and
       
       
    4. 200 million ringgit as part of the MSME Digitalisation Grant.
       
       
20. In addition, MyDIGITAL Corporation has also been tasked with implementing Malaysia’s Digital Blueprint, with a focus on public sector digitalisation efforts and digital talent development.
    
    
21. Overall, the Government’s policies are well underway to promote rakyat and business access to financial and digital inclusion.
    
    
22. Looking ahead, it should come as no surprise that 2022 will continue to be a transformative year, supported by solid fundamentals in the financial sector and ever-changing trends.
    
    
23. The MOF remains committed to fostering these trends and creating an enabling environment for greater market dynamism. This is done to better respond to the changing needs of the economy and society, where healthy competition and innovations coexist with prudent and responsible conduct.

WAY FORWARD

Ladies and gentlemen,

24. As we stand today, I am encouraged to see that we are on the right track, thanks to continued efforts to support financial inclusivity and all of the technological innovations that come with it.
    
    
25. On that note, I would like to congratulate TNG Digital and CIMB on today’s launch, which demonstrates both entities’ admirable desire to constantly innovate.
    
    
26. Once more, thank you for having me, and best wishes to TNG Digital and CIMB in all of their upcoming digital endeavours.

YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz
Finance Minister
Ministry of Finance Malaysia
1 April 2022