19/03/2025

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WEDNESDAY | MAR 19, 2025

Regulatory shifts reshaping fintech expansion: Kairous Capital

Ű BY JOHN GILBERT sunbiz@thesundaily.com

offering financing schemes tailored to franchise businesses. The Market Development Grant by Matrade further supports international fran chise expansion efforts by pro viding financial assistance for overseas market entry.” With the National Franchise Policy 2030 positioning franchising as a key driver of Malaysia’s eco nomic growth, Radzali said. MFA’s strategic focus remains on ex-panding market access, streng thening financial accessibility, and fostering global partnerships. “As MFA continues to strengthen collaborations with government agencies, trade associations, and private investors, FIM 2025 and the upcoming franchise trade missions are set to play a pivotal role in accelerating Malaysia’s franchise industry growth both regionally and globally,” he said. FIM 2025 will be held at the Kuala Lumpur Convention Centre from May 8 to 10, providing a prime opportunity for franchise brands, investors, and industry stake holders to engage, collaborate, and expand their businesses across borders. solutions with legacy systems, ensuring robust cybersecurity to protect sensitive patient data and complying with evolving healthcare regulations.” Lee said fintech is also revolu tionising sectors like manufacturing, agriculture, and supply chain logis tics by unlocking new avenues for working capital and streamlining payments through data-driven digital platforms. “Overall, we see these inno vations lowering the transaction costs and accelerating fund disbursement, enabling a more agile, inclusive financing ecosystem that drives growth and competi tiveness in traditionally capital intensive sectors. “We strongly believe investors should scrutinise how these firms deploy technology: cost-effective AI and automation should enable rapid scaling without excessive capital outlay. “A successful fintech should balance tech investment with tangible outcomes, ensuring inno vation leads to improved customer retention and sustainable income rather than higher tech spending. “When these elements are in place, investments in inclusive fintech diversify portfolios and offer potential for long-term stable returns as they tap into expanding under served markets,” Lee said.

by integrating more people into the formal financial ecosystem.” On fintech’s role in healthcare payments, Lee said digital platforms enhance efficiency by automating billing, claim verification, and fraud detection. “A notable case we can examine is fintech companies working on digital enabled medical coverage and digital third-party administrators. “By integrating mobile wallet solutions and potentially

o Geopolitical landscape affects the capital flow and tech partnerships in emerging markets such as Malaysia, says managing partner

KUALA LUMPUR: Regulatory changes in key markets such as the United States and the European Union impact fintech expansion, particularly in cross-border pay ments, crypto, and digital banking. Hence, domestic companies must stay compliant to retain market access, making regulatory adapta bility a vital investment factor. Kairous Capital managing partner Joseph Lee ( pic ) said the geopolitical landscape, including US-China fin tech restrictions, affects the capital flow and tech partnerships in emerging markets such as Malaysia. “Investors must gauge how fintech startups tackle regulations while seizing regional opportunities. “At Kairous Capital, we assess their regulatory resilience and scalability across markets, leveraging our Southeast Asia-China network to help them navigate complexities, form key partnerships, and refine expansion strategies,” he told SunBiz . Lee said fintech is transforming payments with real-time settlements, Application Programming Interface integrations and digital wallets, making transactions faster and more secure. Artificial intelligence-driven fraud detection, encryption, and tokeni sation enhance security, making PETALING Franchise International Malaysia 2025 (FIM 2025) is poised to become a key gateway for franchise expansion in the Asean region, providing a platform for local and international brands to explore new market opportunities. Organised by the Malaysian Franchise Association (MFA) in collaboration with the Ministry of Entrepreneur and Cooperatives Development, this year’s edition is expected to attract more than 150 franchise players and 30,000 visitors, reinforcing Malaysia’s position as a regional franchise hub. MFA chairman Datuk Radzali Hassan ( pic ) said, FIM 2025 will feature a range of high-impact programmes designed to facilitate business networking, knowledge sharing, and cross-border invest ment. “Among the highlights are the Asean Franchise Convention (May 7 8), which will bring together industry experts to discuss franchise sustain ability, digital transformation, and JAYA: Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

money and transact without needing physical branches. Lee said another important role is fintech’s innovative approach to credit scoring. By utilising alternative data – such as utility payments, rental histories, behavioural metrics, or even social circles – fintech firms can assess the creditworthiness of individuals lacking formal credit histories. This, he said, opens the door for micro-loans and other financial products to those previously ex cluded by traditional lenders. “For example, most digital

profitability. The event will also see the adoption of key franchise related declarations among Asean member countries, further streng thening regional collaboration,” he told SunBiz . Additionally, Radzali said the franchise business matching session (May 8) aims to connect franchise brands with potential investors and partners from over 20 countries, helping busi nesses expand beyond their domestic markets. “Other major events include the franchise exhibition (May 8 10, featuring global fran-chise brands, and the certified digital payments safer than cash, he said, adding, however, that inte grating these innovations with legacy systems is costly and complex. “Fintech firms must also keep up with evolving regulations and cyber threats. From January to October 2024, Malaysia saw RM1.22 billion in cybercrime losses, prompting the government to review banking laws for stricter accountability. Banks and fintechs alike must invest in infrastructure and talent to balance innovation with security,” Lee said. Fintech plays a crucial role in expanding access to financial services by significantly lowering the barriers to entry, he noted. One key aspect is the transform ation of traditional banking through digital platforms. Mobile banking apps, digital wallets, and online payments reduce costs and make it affordable for underserved populations to open and maintain accounts. This digital shift has allowed millions, especially in developing regions, to manage

blockchain-based claim processing in future, they can reduce billing turnaround times and slash ad ministrative costs by more than 30%. “However, there are chal lenges like inte grating these

wallets in Malaysia offer micro financing products for their users. Given the small loan size and cost of delivering this service to a large user base, banks have his torically been unable to do so. Together, these ad vancements democratise financial services and drive economic em powerment and growth

FIM 2025 set to boost franchise expansion in Asean, says MFA

understand consumer behaviour, regulatory requirements, and investment land-scapes. “They also offer structured busi ness networking opportunities, including business matching sessions, market briefings, and franchise show case events,” he added. Radzali emphasised the impor tance of these initiatives in posi tioning Malaysia as a global fran chise leader. “Malaysia has a well-established franchise ecosystem, supported by strong legal frameworks such as the Franchise Act 1998 and globally recognised certifications like our halal certification. Through FIM 2025 and our international trade missions, we aim to accelerate the global expansion of Malaysian franchise brands and strengthen cross-border collaborations,” he said. To ensure sustainable franchise growth, Radzali said, MFA is working closely with financial institutions and government agencies to provide financing support for fran chise entrepreneurs. “Several institutions, including Perbadanan Nasional Bhd, SME Bank and Tekun Nasional, are local

pansion of Malaysian franchise brands through a series of franchise trade missions to high-potential markets. “ In 2025, MFA will lead trade missions to key destinations in cluding the Philippines,

Taiwan, China, Indonesia, Saudi Arabia and Kazakh stan, connecting local franchisors with inter national investors and business partners.” He said these trade missions provide Malay sian franchise brands with direct access to f o r e i g n

markets, helping t h e m

franchise executive training programme (May 5-6), which will equip profess ionals with ad vanced franchise management skills,” he added. Beyond FIM

2025, Radzali said, MFA is a c t i v e l y facilitating the global ex