VCI Global Gains Access To US$750 Million Remittance Market With Acquisition Of EVOLET
KUALA LUMPUR, Malaysia, Dec. 14, 2023 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, or the “Company”) announced that its financial technology arm, Accuventures Sdn Bhd will be acquiring EVOLET. The acquisition will provide VCI Global direct access to the local remittance market.
EVOLET is a home-grown digital platform that provides secured financial access and services for the unbanked, amongst others. As with the other countries, Malaysia has been aggressively driving to become a cashless society, increasing the cashless payment options as the latter is rapidly gaining popularity. Statista, the global data and business intelligence platform, projected the number of mobile wallet users in Malaysia to grow by a compound average growth rate of 11% to 25 million users by 2026. In line with the growing e-wallet users, the digital remittances market, with a projected transaction value of RM3.6 billion (approximately US$750 million) in 2023, is expected to record a compound average growth rate of almost 11% until 2026.
In the course of digitalizing the unbanked, the e-remittance features provided by EVOLET negate the need for the users, in particularly foreign workers, to transfer money through less efficient conventional methods, thus creates evolution of the financial landscape for the foreign workers in Malaysia. To date, EVOLET is already serving over 13,000 users, from 13 countries, who are working in Malaysia.
In October this year, Ministry of Home Affairs revealed that the number of foreign workers in Malaysia has exceeded 2.7 million. Conservatively, the total annual salary of these foreign workers itself is RM50 billion (approximately US$10.5 billion) and rising, based on the current minimum wage. The foreign workers’ hefty annual wages are undoubtedly seen as the remittance market’s growth driver.
In complementing remittance to home countries, EVOLET, which has integrated with notable partners and leading mobile wallet and online payment platforms such as GCash, Mastercard and QQ Pay, also enables a user to receive salary, make purchases and bill payments, just to name a few.
“Post acquisition, we will be able to integrate Credilab which is our AI powered micro financing platform, with EVOLET. This will boost the business considerably by offering financing, primarily targeting the foreign workers in the country,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
About VCI Global Limited
VCI Global is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. The Company provides business and boardroom strategy services, investor relation services, and technology consultancy services. Its clients range from small-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries. VCI Global operates solely in Malaysia, with clients predominantly from Malaysia, but also serves some clients from China, Singapore, and the US.
For more information on the Company, please log on to -capital.co/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
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