MobilityOne shares spike on Islamic digital bank conditional approval

(Alliance News) - MobilityOne Ltd on Wednesday said its Malaysia subsidiary has received conditional approval from Labuan's financial services authority to establish an additional subsidiary to carry on its Islamic digital banking business.

Shares in MobilityOne more than doubled to 1.60 pence on Wednesday morning in London from 0.75p.

The Kuala Lumpur-based e-commerce payment solutions provider said its wholly-owned subsidiary MobilityOne Sdn Bhd, also known as M1 Malaysia, will establish a subsidiary in Labuan to be named MBO Bank (Labuan) Ltd.

MobilityOne said the purpose of MBO Bank is to offer a "full suite of offshore financial services" through a Shariah-compliant platform to international clients, under the Labuan Financial Services Authority regulatory framework.

Due to the preparatory work required to meet the conditions of Labuan FSA approval, MobilityOne said it does not anticipate to record any revenue or earnings from the Islamic digital banking business in 2026.

"Labuan serves as an offshore financial centre, offering digital financial solutions for offshore entities and is currently actively promoting Islamic digital banking through specific regulations to capitalise on global trends," the company said.

Chief Executive Hussain Rahman said: "This conditional approval from Labuan FSA represents a significant step for the Group to expand its fintech ecosystem from payment processing and e-money services into full-scale Shariah-compliant digital banking.

"In addition, it reflects Labuan FSA's confidence in MobilityOne's proposed business model, governance framework and commitment to regulatory compliance."

By Roya Shahidi, Alliance News reporter

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