First Shariah-Compliant eWallet Product Launched in Malaysia

Touch ‘n Go Group said that Principal e-Cash Fund, the underlying fund for Touch ‘n Go’s GO+, is now shariah-compliant, making it Malaysia’s first shariah-compliant eWallet product.

In a statement, Touch ‘n Go Group said through the shariah-compliant fund, its eWallet customers will still gain access to low-risk money market investments for as low as RM10 and earn a potential return on a daily basis, whilst being able to use the money for eWallet transactions.

GO+ was first launched in March, as the group’s first step into the area of digital financial services. The group noted that to date, Touch ‘n Go eWallet’s platform GO+ has surpassed 1.2 million users.

“When we first launched GO+, there were calls from our users for the underlying fund to be shariah-compliant. We listened to them and immediately went to work. We now have a product that is even more inclusive than it was, and perfectly in line with our goals of bringing basic financial services to everyone,” Touch ‘n Go Group group chief executive officer (CEO) Effendy Shahul Hamid said.

The group said that the GO+ product is anchored on the Principal e-Cash Fund, a money market fund managed by Principal Asset Management Bhd.

It added that the product co-creation collaboration essentially combines Touch ‘n Go eWallet’s expertise in technology and ecosystem and the Principal’s core expertise in investment strategy and fund management.

Principal Asset Management CEO Munirah Khairuddin said that with the Principal e-Cash Fund being shariah-compliant, customers from all walks of life are expected to start investing with as little as RM10 in the product.

“As a financial companion, identifying the trends and addressing customers’ needs for shariah-compliant solutions have allowed Islamic business and capabilities to continue to grow from strength to strength.

Principal Asset Management has a total of RM96.7 billion funds in Southeast Asia as of June 30, out of which RM30.69 billion is Islamic funds.

Originally on theedgemarkets.com