Joint venture agreement executed with key Malaysian institution
Raiz Invest has taken a major step forward in its push into Southeast Asia with the
signing of a joint venture agreement (JVA) with a subsidiary of a leading Malaysian investment
institution.
The JVA is with Jewel Digital Ventures Sdn Bhd (Jewel), a wholly-owned subsidiary of PNB Equity
Resource Corporation Sdn Bhd (PERC), which, in turn, is wholly owned by Permodalan Nasional
Berhad (PNB) (www.pnb.com.my). Jewel is the investment vehicle set up by PNB to spearhead its
digital business strategy which aims to unlock digital value propositions for current and future
customers of Amanah Saham Nasional Berhad (ASNB), PNB’s wholly owned unit trust management
company. PNB is one of the largest fund management companies in Malaysia with assets under
management of RM298.5 billion (A$103.9 billion) across 13.8 million accounts.
Raiz Chairman Tony Fay, says: “Reaching agreement with PNB is an exciting development as we
continue our push into Southeast Asia.”
“By joining forces with a trusted and reputable group such as PNB, we are laying the foundations for
sustainable growth in some of the fastest growing markets in the world where there is a genuine
appetite for fintech products and services,” he said.
The joint venture is a 70%/30% split between Raiz and Jewel respectively with Raiz primarily providing
the technology while Jewel will provide the required capital once the condition precedents are met,
including a granting of a licence in Malaysia. Raiz Malaysia will be a fully consolidated entity into Raiz
Invest Limited.
The JVA also outlines how Raiz and PNB will partner in other Southeast Asian countries.
Tony Fay continued: “PNB and its strategic holdings have significant presence in Southeast Asia,
which will only benefit Raiz’s efforts to enter these markets. With a population of 33 million people,
Malaysia represents an excellent opportunity for our business.”
“With the JVA executed, the next step is to submit a formal application to the regulator for the license.
Discussions with the regulator are progressing, and at this stage, subject to regulatory approval, it is
anticipated the platform will go live towards the end of CY19 or early in the New Year. The work done
on the platform to support the Indonesian launch (anticipated 3Q CY 19) will facilitate an efficient roll
out in Malaysia,” he said.
Raiz’s growth strategy and vision includes expansion into Southeast Asia. In December 2018, Raiz
secured approval for a licence to distribute mutual funds in Indonesia. The Indonesian business was
launched in March 2019, with the App expected to be released in the September 2019 quarter.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.
A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.
