Ancom Berhad and ManagePay Systems Berhad (MPay) are planning to set up a joint venture firm that will offer e-payment services in Malaysia in a bid to promote the Asian country to Chinese tourists, theedgemarkets.com reported.
According to a filing submitted by the Kuala Lumpur Stock Exchange-listed firm, the company has already inked a term sheet with MPay. As outlined in the said paper, the partnership will utilize MPay's capacity to promote e-payment systems and merchant aggregator business.
The document also acknowledged MPay's ownership of the "necessary electronic commerce marketplace development technology and capability to power a B2B2BC Travel Portal for the Malaysian travel and entertainment industry," the article said.
The platform can be used to promote products and services that are related to travel and tourism, particularly targeting Chinese tourists, Ancom said.
"The proposal will enable the company to expand its earnings base and diversify into a new business," the company said.
Based on the term sheet, MPay will be assisting the joint venture by offering its expertise and resources. The firm will also aid in establishing a complete system for the said project.
For Ancom's part, the company will help in getting the required approvals for the venture's operations. It will also be responsible for proposing the B2B2BC Travel Portal to the Malaysian Tourism Board.
The filing further shared that the term sheet will be in force for a three-month period. Upon expiry, the document will be automatically renewed for another three months. If within the extension period the agreement on the joint venture will not be met, the term sheet will lapse.
Recently, Ancom's value fell 2.44 percent, landing the firm a market capitalization at 172.14 million yuan.
Ancom was first incorporated in Malaysia in March 1969 as Ansul Sdn Bhd, a pioneering firm that manufactured herbicides and agricultural chemicals. In 1989, it assumed its present name.
As posted on its official website, "Ancom is the holding company of Nylex (Malaysia) Berhad and Ancom Logistics Berhad, [which are both] listed on the Bursa Malaysia Securities Berhad's Main Board and ACE Market respectively."
On the other hand, MPay provides end-to-end payment solutions to financial institutions, card issuers and merchants that run operations in Malaysia. According to its website, it has a market capitalization of 120 million yuan and is currently listed in ACE Market of Bursa Malaysia.