The Board of Directors of MPay is pleased to announce that ManagePay Services Sdn. Bhd. (“MPSB”), a wholly-owned subsidiary of the Company had on 30 June 2021 submitted an application for a digital banking licence (“Application”) to Bank Negara Malaysia. The Application is supported by three (3) local strategic partners ("Strategic Partners").

All three (3) Strategic Partners are bumiputera-controlled entities and have expressed their interest to invest up to 45% in aggregate in the equity of MPSB in the event the Application is successful and subject to regulatory’s prior approval.

A formal agreement shall only be executed upon a date to be agreed between the Strategic Partners and the Company in the event the Application is successful.

The Application will not have any effect on the issued share capital and shareholdings of the substantial shareholders of the Company. The Application is not expected to have any material effect on the net assets, earnings and gearing of the Company and its subsidiaries (“Group”) for the financial year ending 31 December 2021.

None of the Directors and/or major shareholders of MPay and/or persons connected with them have any interests, direct or indirect, in the Application.

Having considered all aspects of the Application, the Board of Directors of the Company is of the view that the Application is in the best interests of the Group.

Further announcement will be made of any material development as and when appropriate.

This announcement is dated 1 July 2021.