KUALA LUMPUR (April 24): E-government services provider MyEG Services Bhd has inked an agreement to collaborate on the launch of a virtual asset fund or Hong Kong virtual assets exchange-traded fund (ETF) products.

The group and Zetrix Foundation signed a memorandum of understanding (MOU) with Hong Kong licensed virtual asset manager MaiCapital, to collaborate on launching a Securities and Futures Commission of Hong Kong (SFC)-approved ETF, which would consist of a basket of cryptocurrencies, such as Bitcoin and Zetrix.

MaiCapital has received SFC’s approval to manage funds that may comprise up to 100% virtual assets. The firm is subject to SFC’s "Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets".

In a statement on Tuesday, MyEG managing director Wong Thean Soon said the collaboration marks another milestone in integrating digital assets into mainstream finance, as this would provide investors with additional avenues for diversification across multiple cryptocurrencies, and help them to mitigate the risks and volatility associated with owning a single cryptocurrency.

This partnership follows MyEG-developed Zetrix's announcement of a strategic alliance with Web3Labs Hong Kong, a powerhouse in Web3 development and investment, alongside venture capital firm Summer Capital.

MyEG and MaiCapital aim to drive forward Hong Kong's Web3 ambitions and position Zetrix as the preferred blockchain infrastructure for applications aligned with the Hong Kong government's objectives, an initiative launched earlier this year.

For the financial year ended Dec 31, 2023 (FY2023), MyEG’s net profit grew 22.3% to RM487.65 million from RM398.66 million a year earlier, as revenue increased by 20.57% to RM774.28 million against RM642.16 million previously. This was mainly contributed by MyEG’s Zetrix blockchain platform, sale of Zetrix tokens, and the initial exchange offering of Zetrix tokens on three major global digital asset exchanges.

Besides its Zetrix blockchain platform and tokens, the annual earnings were also driven by existing concession and commercial services, as well as an increase in foreign worker job-matching service due to the uplifting of the freeze on foreign worker recruitment.

According to MyEG, its long-term outlook remains positive as the group continues to introduce innovative series in Malaysia and in the global.

At 10.24am on Wednesday, shares of MyEG rose half a sen or 0.64% to 79 sen, giving the group a market value of RM5.97 billion.