UNCDF in Malaysia

Overview

October 2019
Who we are
Established by the General Assembly
in 1966

Only UN funds and programmes that

can make investments

Works “first and foremost” in Least

Developed Countries, but not
exclusively

Total investment capital and technical

support to private and public sector:
$81 million (2018)
Our footprint: in 31 of 47 LDCs

+ Countries:
• China, Malaysia: In-
country presence
• Indonesia, Vietnam:
Grant investments
• Upcoming countries: India

3
Leaving no one behind in the digital era

Digital Financial services & Innovation

Increase skills,
Empower revenues &
Everyone Women Youth Refugees Migrants MSMEs economic
opportunities

Energy Transport
Increase
access, quality &
Themes affordability
of basic services

Education Health
Finance
Priority SDGs
UNCDF in Malaysia
Aspirational Malaysians: an untapped market
From transactional to transformational

Source: Metlife Foundation

 Focus segments

54.3% of Malaysian Malaysian MSMEs make Unemployment rate among the An ageing population 15.6% of total workforce are foreign
women aged 15 – 64 increasing contributions to youth relatively high. 10.85% of presents a potentially major workers - documented and
undocumented.
participating in labor GDP (37%). total labor force ages 15-24 problem for Malaysia in the
force. Relatively low as unemployed. future. Entails greater costs
• Migrant worker bank account
compared to other Access to capital is a relating to healthcare and ownership : 22% (rural), 55%
ASEAN countries. moderate to very severe general care services (urban) [BNM, WB]
problem for businesses in About 26% of the Malaysian • 2/3 of migrant workers
Women-led MSMEs are Malaysia. workforce are freelancers and that (=15million) use non-bank
present in many sectors the number is growing. remittance service provider
but still concentrated in Malaysia’s overall digital
As of end April 2019, there are some
low-growth, low-wage adoption is high, but is Some gig economy organisations, 170,460 refugees and asylum-
sectors. relatively low for business. especially ride-sharing and food- seekers registered with UNHCR in
delivery services, have raised public Malaysia.
61% women-owned E-commerce concentrated concerns on skills and retirement
businesses have internet in big businesses [WB ‘17] plans.* • Certain people cannot comply
[WB, ‘17] with the basic requirements to
open a bank account due to a lack
of proper documentation.
 Plan Save
The B40
Challenge:
Improving
Financial Health
Spend Borrow
SAVE SPEND

Pod is a savings app aimed at young MPay offer POS services, an e-

LMI people. They are working with commerce platform, and a money
partners to offer micro-savings at transfer service aimed at micro-
the point of spending or earning. enterprises.

HelloGold is a shariah compliant MyMy offers an app and payment

mobile platform that offers card. They aim to help LMI people,
micro-savings in gold. and their children, learn financial
literacy while spending.

GoGet are partnering with Pod to

Mobile Money have a network of
offer GoGetters, or on-demand
service centres where people can pay
platform workers, a way to save
bills, top-up and pay remittances.
their earnings. Eventually, through
Through partnerships they are
other partnerships, they aim to
expanding the products they offer to
address all four areas of financial
better suit LMI people.
health.
 BORROW

ButterflyFX have an online financial

literacy platform that helps to MadCash offer micro-loans to
profile people’s behaviour thereby female entrepreneurs through
establishing a lending profile donation-based fund.
without requiring credit history.

Global Psytech offer psychometric microLEAP is a P2P microfinancing

testing to assess credit worthiness platform that focuses on micro-
without a credit history. entrepreneurs.

Capital Bay offers financing to

Funding Societies are a P2P lending
MSMEs from P2P lenders, banks,
platform trying to improve how they
non-bank financial institutions.
can service B40 micro-enterprises
They are offering financing to help
through new partnerships and
long-haul lorry drivers absorb day-
products.
to-day costs.
 PLAN
Kasih Rakyat offer takaful insurance to
LMI people using a network of agents.
They aim to create a community-based
model where LMI people promote and
distribute policies and earn
commission by doing so.
Senang offer micro-insurance to
informal sector workers and
MSMEs.
MyHealth combine health insurance
with telemedicine to offer the B40
market a more affordable way to
access medical care.
Vsure aim to offer different
affordable insurance products
through one app.
Wakaful is a digital trust platform that
offers smart waqf (endowment made
by a Muslim to a specific cause)
distribution. Through a distributed
ledger and tokenisation of assets
Wakaful allows trustees to track their
endownments.
Pinbox offer micro pension services
to informal sector workers.
Publications

How Do Low- and Middle- Income

People in Malaysia Experience and
Use Digital Financial Services?
• Downloaded 101 times
• Focused on people’s awareness and usage of DFS
currently available in Malaysia, as well as possible barriers
and pain points
• Currently used by Bank Negara Malaysia to guide their
initiatives on digital payments; they are translating their
outreach materials in Bahasa Malaysia based on our
recommendations
Financial Health Scale-up Challenge
• Development of new use-cases, products or business models that could drive outcomes around
financial health/financial resilience for segments currently left behind
•
Supporting at least 5 partners by supplementing their project teams with experts who have the
know-how in delivering digital financial services in challenging markets.
•
Providing technical assistance and mentorship services to the selected partners.

• Intended investment of half a million USD on this initiative, specific projects will be financed based
on business needs. An average intervention may range from 50,000 to 150,000 USD.
•
Approaching banks, financial intermediaries, microfinance institutions, insurance companies and
other firms registered in Malaysia that have digital inclusive solutions that can drive financial health
in Malaysia.
Solutions Under Consideration
Open or common platforms
make the LMI user experience more
seamless when it comes to comparing and
subscribing to financial products, such as
open APIs.
Micro-financial products
caters to the nature of the cash flow
(fluctuating), occupation (informal,
holding multiple jobs), and financial
pressures and goals that LMIs experience.
Digital Identity
Secure with easy access for LMI user
Market Place
for micro and small entrepreneurs, part-
time, informal workers. These can be
platforms that make job and consumer
markets more accessible for micro and
small businesses.
Education tools
can improve people’s awareness
about financial health
Data Analytics
used by the provider to understand
their customers in more granularity, as
well as supplement or replace
standard processes and requirements
that hinder access and usage of digital
financial services among the LMI.
 www.uncdf.org/finlab/
uncdf.malaysia@uncdf.org