KUALA LUMPUR: Hong Seng Consolidated Bhd (HSC) has acquired a 51 per cent equity interest in Innov8tif Holdings Sdn Bhd for RM30.85 million to empower Malaysia as a digital nation.
Innov8tif Holdings currently owns Innov8tif Solutions Sdn Bhd and Xendity Sdn Bhd under the Innovative Holdings Group.
HSC executive director Lester Chin said it is a synergistic move to bring Innov8tif Solutions Group and Xendity together.
He said previously that each of the two companies had its operations and customer base servicing different industries in a parallel manner.
"However, Innovative Holdings has now combined and enhanced the capabilities, resources and experiences of both companies, which will boost the research and development (R&D) of the service offerings with the support from our strategic partners," he said in a statement today.
Innov8tif Holdings has been involved in digital onboarding and identity verification (IDV)-related services and businesses specialising in IDV technology to support e-KYC and anti-fraud processes, customer onboarding process automation, and mobile biometric authentication solutions.
The company has a presence in Malaysia, Singapore, Indonesia, Thailand, the Philippines and Cambodia.
Chin noted that the research and development (R&D) advancement would enable Innov8tif Holdings to roll out a universal digital suite or e-Nation suite known as Digital Nationwide Access (DNA) solutions capable of empowering a digitalised Malaysia just like any other developed country.
"DNA solutions applicable across industries will facilitate a seamless digital ID conversion and verification by linking public and private sectors towards a digitalised nation.
"With DNA in place, all validation processes across agencies and departments such as Jabatan Pendaftaran Negara (JPN), Jabatan Imigresen Malaysia (IMI), Bank Negara, digital banks, Suruhanjaya Syarikat Malaysia (SSM) and other services will be eased since it will be all streamlined," said Chin.
The global IDV market was valued at US$8.41 billion in 2021 and is expected to reach US$ 26.34 billion by 2029.
Following the government's aim of making Malaysia Southeast Asia's investment hub, Lester added that HSC had had consultation sessions with the relevant government departments on implementing a universal digital suite, and the feedback so far has been positive.
HSC will present its full-fledged proposal to the government once it has synergised the businesses of Innov8tif Holdings and Xendity.
"Given the prospects and positive outlook of the digital IDV sector driven by the pandemic and the correlated increase in online transactions and digital lifestyles resulting in the booming demand of IDV in a wide range of industries towards digitalisation, Hong Seng believes that the venture into the digital industry is timely and it is expected contribute positively to the business prospects of the HSC by incorporating a fresh income stream from a promising sector," he added.