Last week, China’s biggest social network and gaming firm, Tencent Holdings (OTC: TCEHY), reported a high quarterly results beating forecasts and announced that WeChat is to launch in the first foreign country, Malaysia. The company has gained an e-payment license in Malaysia for local transactions and plans to launch early next year as they search for new growth opportunities outside of China, competing against rival, Alibaba Group.
Over 600 million people reside in Southeast Asia and is home to one of the world’s fastest growing economies. WeChat Pay and Alibaba’s Alipay dominate China’s digital payment market and have been aiming to expand globally. WeChat has been a key revenue contributor for Tencent in the third quarter while payment and cloud brought a 143% jump. Tencent plans to keep investing in digital content as well as more oversea acquisitions in order to integrate more of their digital assets globally.
“Malaysia is actually quite large in the sense that we have 20 million WeChat users, huge potential, and the market is quite warm towards internet products from China,” senior vice president S.Y. Lau said.