MAHB, Rev Asia shares up on likely gains from Digital FTZ
PETALING JAYA: The stock prices of Malaysia Airports Holdings Bhd (MAHB) and Rev Asia Bhd rose on speculation that both companies would gain from the iconic Digital Free Trade Zone (DFTZ) that was launched yesterday.
MAHB, whose shares which closed 9 sen up to RM7.28 a unit, had inked a memorandum of understanding (MoU) with Cainiao Network, the logistics arm of e-commerce giant Alibaba Group. This was to develop a regional e-commerce and logistics hub in the KLIA Aeropolis, the planned integrated airport city, as part of the DFTZ.
More surprising was the movement in Rev Asia. The company is not directly involved in the DFTZ but the link was through its parent company Catcha Group, which owns 66% of Rev Asia.
Rev Asia’s shares closed at a 52-week high of 81.5 sen, rising 15.5 sen on a volume of almost half a million shares changing hands.
Catcha Group, which describes itself as Asia’s leading Internet group, has been made the master developer of the Kuala Lumpur Internet City (KLIC).
The KLIC will be a component of the DFTZ, which aims to house at least 1,000 Internet related firms.
In a press release, Catcha said the KLIC would encompass 5 million sq ft built over 15 years with an estimated gross development value (GDV) of RM5bil. It is intended to be one of the world’s largest purpose-built digital hub for global technology giants from China, the US and other major countries which are targeting South-East Asia as well as regional tech companies and local start-ups.
Another notable development at the event was the inking of MoUs between Ant Financial Services Group, Alibaba’s financial payments arm, and two of Malaysia’s big banks. Launched in 2004, Alipay currently has over 450 million active users.
Malayan Banking Bhd (Maybank) and CIMB Bank Bhd – the country’s largest financial services providers both signed agreements to partner with Ant Financial, which operates the world’s largest online and mobile payment platform Alipay, to enable the Alipay mobile wallet in Malaysia.
Maybank said its strategic partnership with Ant Financial is to provide Alipay users travelling in Malaysia with contactless payment services which can be used in various outlets ranging from high-end department stores, duty free outlets to hotels popular with Chinese visitors.
Maybank’s group strategy officer, Michael Foong said: “As a leader in card payments, Maybank will now offer Alipay customers the added convenience and security of our comprehensive cashless payment channels, thereby expanding the geographical reach of their digital wallets and enhancing their travel experience in this country.”
Meanwhile CIMB Group said in a statement that it would act as the settlement and merchant acquirer bank, allowing Chinese visitors to pay for their transactions in yuan without concern about exchange rates. This is done through a simple barcode-scanning method that they are used to in their country.
CIMB Group chief executive Tengku Datuk Seri Zafrul Aziz said the entry of Alipay marked a notable milestone in the growth of mobile wallet payment services in Malaysia.
“We are excited to work with Alipay to provide Chinese tourists a convenient and secure payment experience while in Malaysia and we target to go live with our merchants by May 2017, having received Bank Negara approval just recently,” he said.
Both Maybank and CIMB said the service would go live in Malaysia in May.