GO + was a feature launched on Touch ‘n Go eWallet recently, after it was approved by the Securities Commission of Malaysia (SC) to operate as a recognized market operator (RMO) in January 2021. It is essentially a low-risk investment that allows users to earn Daily returns with their balance in the app.
Along with the main electronic cash, it is a money market fund that it manages Malaysia homeIt aims to provide investors with liquidity and income.
To determine what type of investor I am, I am all with low risk, stable investments with no time or energy to track my profits / losses. That’s why I dumped a few thousand ringgit into my country StashAway is simple An account (I think it’s a fixed non-obligatory deposit) to earn some interest without much effort on my part.
Therefore, the moment GO + was launched with a minimum reload of RM10, most of my e-wallet balance went to it. It is true that it was only RM20 because I hardly used the app in the first place, but I felt I had nothing to lose anyway.
But I didn’t have much to gain
What attracted me to GO + was its high liquidity. Not only am I likely to generate some daily revenue, but I can also cash out anytime I want or spend it directly on fees and merchant acceptance. This means, if I was trying to pay for something with an e-wallet and didn’t have enough funds, it would be automatically withdrawn from GO +.
It also costs nothing to cash out. There are no fines or withdrawal fees – at least for now, according to frequently asked questions. Notwithstanding, there is a trustee administration fee of 0.45% and 0.3% per annum each.
Of course, this flexibility comes with its downsides. Firstly, it won’t earn much from GO + as the expected return is only 1.61% (at the time of writing). When I started 5 days ago, the rate was 1.47%, and I had only earned RM0.0029 in profit after my initial RM20 cashout.
Due to these low returns, GO + should not be compared to a fixed deposit as the cash is held for a specified period and cannot be withdrawn. Instead, compare it to the benefit you would derive from a general savings or checking account at the end of the year.
GO + is actively managed by the main Malaysian corporation, with investments made through a combination of cash (in the bank), deposit-taking, money market instruments, and debt instruments. This is according to their product highlight paper which also mentioned that investments are generally placed for short periods of high quality to provide the high liquidity offered.
Not much, but an honest job
Once you activate GO +, the app icon will appear on the app’s homepage, directly below your e-wallet balance.
Inside, there will be options for Cash In and Cash Out, where you can use the balance from your e-wallet or add money from your bank account. Daily earnings will be added to your GO + account the day after cash payments made before 4 PM.
To Cash Out, you will have the same options as before. If it’s in Touch ‘n Go e-wallet, money will be added instantly. If it is to your bank account, then the funds will be deposited after 1 business day, if the application was submitted before 4 PM. As mentioned earlier, if you use your GO + money to facilitate payments, the Cash Out amount will be deducted from the merchant immediately.
For me, GO + basically gives me an incentive to keep some money in my e-wallet that is not otherwise utilized. It won’t earn me much, but it makes me happy knowing my money isn’t just lazy, sleeping like my poodle at home.
And maybe I’m not alone in this thinking. In terms of growing the user base, having such a feature could attract more Malaysians to use and stay in the app for its services. The minimum reload of RM10 is also attractive to those who are not aware of the high risks and long-term investments, or who do not have sufficient funds for them.
One thing to note about major e-cash is that it is not a Sharia compliant fund, but Touch ‘n Go said the Shari’a compliant fund option is In the works.
This feature gave Touch ‘n Go eWallet an edge over its competitors, and it would be a nice touch for other e-wallets in Malaysia to track instead.
While the rate of return leaves much to be desired, the introduction of GO + to the market opens more possibilities for what e-wallets can offer, especially as more residents turn to them as a common cashless option during the pandemic.