PETALING JAYA: Hextar Global Bhd has entered into a consortium agreement with Arcadia Acres Sdn Bhd and Ihsan Equity Sdn Bhd to establish a syariah-compliant digital bank pursuant to the submission to Bank Negara for a digital banking licence.

       In a joint statement yesterday, Hextar Global, one of the largest agrochemical companies in Malaysia, said the consortium believes the unconventional approach and experience, as well as a focus on eco-systems will allow for a better understanding of the requirements and needs of each community that the bank would be serving.

       Hextar Global added that its value proposition and focus on traditionally underserved communities will assist Malaysia in achieving its developmental goals.

       “This is the first time the three parties are collaborating with each partner, contributing its own unique expertise and platform to establish a syariah-compliant digital bank.

       “The consortium is also expected to include developmental agencies entrusted by the Malaysian government to upgrade and improve the lower and middle-income earners in the country.”

       Hextar Global executive director Datuk Eddie Ong Choo Meng said Arcadia has prepared a very comprehensive proposal that sets out clearly a blueprint to promote financial inclusion and literacy, especially among the underserved through digital banking services that are also syariah-compliant.

       “We at Hextar Global feel very honored to be invited to be part of this collaboration as we see Arcadia and Ihsan as ideal partners to lead this push into the digital banking space.”

       Arcadia managing director Zainal Abidin Abd Jalil said its involvement and extensive experience in government projects, especially those involving digital technology, are through its investee companies Dagang Nexchange Bhd (DNeX) and Theta Edge Bhd.

       Zainal said this will provide Arcadia with the expertise to understand the requirements and to build an optimal infrastructure for the bank based on leading edge technology.

       Arcadia is the single-largest shareholder in DNex, with principal activities in the high-technology semiconductor fabrication, information technology, oil and gas and offshore fiber optic installation and maintenance.

       Ihsan Equity, meanwhile, is a special-purpose vehicle set up by Fass Payment Solutions Sdn Bhd (FassPay), Datuk Abu Huraira Abu Yazid, Mohamad Khir Amran and DAT Capital LLC, to operate as a non-bank financial institution.

       With FassPay’s experience in marketing, distribution and merchant on-boarding for mobile payment systems, specifically mobile point-of-sales, Ihsan Equity chairman Datuk Abu Huraira Abu Yazid said the bank will immediately have access to the requisite technology and expertise to commercialise its business and come to market in a short period of time.