(Bloomberg) — Grab Holdings Ltd., an RHB Bank Bhd. consortium and a group involving Sea Ltd. were granted licenses to run digital banks in Malaysia, providing the firms with a way to tap into the booming e-commerce market.
AEON Financial Service Co. and KAF Investment Bank -led ventures were also among the five successful applications announced Friday by the Malaysian central bank. Southeast Asian ride-hailing operator Grab’s successful bid included its partners Singapore Telecommunications Ltd. and Kuok Brothers Sdn. Bhd., which is part of tycoon Robert Kuok’s Kuok Group.
Malaysia, like Singapore and the Philippines, is attempting to broaden access to financial services by opening up its banking system to digital and non-bank companies. The entrants will provide fresh competition for traditional lenders such as Malayan Banking Bhd., CIMB Group Holdings Bhd. and Public Bank Bhd., which have dominated the industry in Malaysia for decades.
RHB, the fourth-largest bank in Malaysia, bid together with local wireless carrier Axiata Group Bhd.’s Boost Holdings. Singapore’s e-commerce and gaming giant Sea’s bid included a unit of YTL Corp., a Malaysian conglomerate controlled by tycoon Francis Yeoh.
Grab and Singtel’s joint bid was among four winners of digital banking licenses in neighboring Singapore in December 2020.
(Updates with details about bidders in fourth paragraph. A previous version was corrected to show Grab was among license winners.)
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