KUALA LUMPUR: Permodalan Nasional Bhd's (PNB) micro-investing and fintech platform, Raiz, will shut in Malaysia, after four years of operations.
In a filing with the Australian Securities Exchange (ASX) last Friday, Raiz Invest Limited said Raiz Malaysia Sdn Bhd, a joint venture between Raiz Invest and PNB, will cease operations here following a strategic review of its business.
Raiz Malaysia is operated as a JV with Jewel Digital Venture Sdn Bhd (JDV) and Raiz Invest Australia Limited, a wholly owned subsidiary of Raiz Invest Limited (Raiz Invest).
"Raiz Invest has previously advised that a strategic review of this busines was underway and following completion of that review, the JV partners have agreed to close the business," it said in the filing.
Raiz said the Malaysian entity has sufficient capital to fund the expenses relating to the closure with its joint venture company JDV having previously committed a further RM3 million to ensure a structured, coordinated and timely wind down process.
"A comprehensive and orderly closure process will be implemented in phases to ensure the secure and efficient handling of client assets," Raiz said without providing a timeline for the closure.
The exit will not impact the profit and loss of Raiz Australian operations, and Malaysian operations will be classified as discontinued operations in its financial report.
"The decision to close the Malaysian operations will enable Raiz to focus on strengthening and expanding its Australian business. With our continued product innovation and our marketing campaign, we are confident the Raiz Australian business will continue to grow and deliver strong economic performance for shareholders. On behalf of the board, I would like to thank our partner for their role in the JV partnership over the last four years," said Raiz managing director and chief executive officer Brendan Malone in a statement.
Business Times has reached out to Raiz Invest and PNB for further comment.
As at time of writing account holders had not been notified of the plan to shut operations.