24/10/2025

FRIDAY | OCT 24, 2025

15

BIZ & FINANCE

Mastercard, CTOS team up to widen credit services in M’sia

Conference in Kuala Lumpur on Oct 22. This annual event brings together key stakeholders in the tax industry including government officials, tax professionals and business leaders to discuss the latest developments in Malaysia’s tax landscape and the implications of the Budget 2026 proposals. The 2026 Budget and Tax Conference will also be held in Johor Bahru, Kuching, Kota Kinabalu, Malacca, Kuantan and Penang this October and November. APS completes first propeller overhaul at Malaysian site KUALA LUMPUR: Aircraft Propeller Service’s (APS) newly opened MRO facility in Malaysia has overhauled its first batch of Collins Aerospace 568F propeller blades, representing the first time this type of propeller has been overhauled in-region. Previously, all Collins Aerospace 568F propellers had to be sent to North America or Europe for full overhaul, but with APS’ new, state of-the-art, internationally certified MRO facility in Malaysia, these propellers can be overhauled in region, saving aircraft operators time and money. APS Asia Pacific managing director Fergus Lopez said that this milestone represents a major step forward for operators in the Asia-Pacific region. “By bringing Collins Aerospace 568F propeller repair capabilities directly to Asia, we are enabling airlines to benefit from shorter lead times and greater efficiency. Our goal is to deliver world class service, closer to where our customers operate,” he added. APS is the only MRO licensed by Collins Aerospace in Asia and the Americas to perform proprietary repairs on the 568F propeller system. This exclusive licensing provides Asia Pacific operators with unprecedented access to original equipment manufacturer approved processes.

KUALA LUMPUR: Anchored in the Madani vision of harnessing artificial intelligence (AI) for growth and efficiency, Ernst & Young Tax Consultants Sdn Bhd has launched an innovative AI-powered solution to transform the Sales Tax and Service Tax (SST) compliance landscape in Malaysia. The solution was developed via collaboration between the ey.ai Innovation Centre in Kuala Lumpur and EY indirect tax professionals in Malaysia, integrating seamlessly with KUALA LUMPUR: Mastercard and CTOS Malaysia will jointly provide credit risk transformation services, addressing credit underwriting and loan approvals, portfolio growth and collections. The services for financial institutions are expected to bring global best practices in credit risk management for individuals and SMEs to Malaysia. The initiative increases access to financing for small businesses and individuals with an existing credit history. This is achieved by combining CTOS’ database of longer-term customer credit information and existing scorecards, with Mastercard’s global expertise, comprehensive data analytics and advanced increase access to financing for small firms and individuals o Initiative to bring in global best practices in risk management,

used by EY professionals, a customised offering to those that want to own the solution, and finally as a standardised software-as-a service (SaaS) solution. This flexibility allows businesses to choose the approach that best suits their needs, so that they remain compliant with the latest regulatory requirements set by the Royal Malaysian Customs Department (RMCD). The launch of this solution took place at the EY Tax Academy Flagship Series: 2026 Budget and Tax This drives profitability for banks while enhancing engagement and experience for small businesses and individuals who were previously excluded from such services. It also aims to address collections by enabling banks to more effectively assess repayment trends and prioritise customers with high likelihood of non-repayment. In the longer term, such initiatives will increase the adoption of private credit bureau data, modernise and strengthen Malaysia’s financial ecosystem, and drive inclusive growth across the country. Mastercard’s global expertise, we are enabling financial institutions to assess risk with greater precision and confidence. The result is a more inclusive and resilient credit environment, one that promotes wider access to financing while upholding the highest standards of governance and data integrity.” Beyond this, the collaboration will also enable financial institutions to better explore growth opportunities with existing customers – such as improving credit lines, pursuing up-sell or cross-sell strategies – supported by prudent risk management.

e-invoicing data to address the pressing challenges that organisations face with SST compliance and associated reconciliations that are required. It aims to reduce manual processes, use data analytics to comb through transaction-level data to identify issues, uses AI to recommend fixes and automates the production of SST returns, enabling tax teams to focus on strategic decision-making. “With this solution, we are empowering organisations in consulting capabilities. Mastercard Malaysia and Brunei country manager Beena Pothen said, “This collaboration with CTOS is another step forward in Mastercard’s commitment to expanding access to credit. With 48% of SMEs in Malaysia still unserved or underserved, this collaboration directly addresses a gap and supports the growth of small businesses and entrepreneurs, who represent 96.1% of all enterprises in Malaysia as of 2024. By increasing access to credit, it aligns directly with the national level agenda through the 13th Malaysia Plan to build a resilient, high-income, and inclusive nation.” Global approval rates for credit cards and personal loans from open-market sourcing are typically upwards of 40%. A key factor in improving these rates in Malaysia is the utilisation of credit information from private bureaus, where annual exercises for improved risk management with private bureaus, compared to markets such as India and the Philippines, are far less common. Private bureaus such as CTOS

Malaysia to navigate the complexities of SST compliance with greater ease and confidence. This end-to-end solution not only enhances accuracy and efficiency but also prepare businesses to be audit-ready in an ever-evolving regulatory landscape,” said Ernst & Young Tax Consultants Sdn Bhd Malaysia tax managing partner Farah Rosley. Designed for organisations aiming to improve their SST reporting processes, the new SST solution is available as a tax compliance service provide data across a longer period, summarised scorecards and performance data on rejected customers at a group level. Combined with Mastercard’s expertise in analysing the rich data set and turning them into actionable insights for banks through its advanced consulting capabilities, this collaboration transforms credit underwriting policies and enables banks to make better informed lending decisions. This enhanced data-driven approach not only increases loan approval rates, but also reduces default rates and optimises portfolio growth for banks, while increasing access to credit for small businesses and individuals who were historically rejected based on former loan assessment models and limited data sets. CTOS Digital Bhd interim group CEO Kevin Loh said, “This collaboration represents a meaningful step forward in strengthening Malaysia’s credit ecosystem through advanced data analytics and innovation. By pairing CTOS’s depth of local credit data, governed under the Credit Reporting Agencies Act with

EY rolls out AI solution for faster SST compliance