The Selangor legislative assembly’s first meeting is scheduled for next month, but the newly-sworn in Pakatan Harapan state government is already facing criticism from opposition parties. The controversy centers around the Selangor General Insurance Scheme (Insan) and its ewallet app Wavpay, with detractors alleging that the state government has violated data protection and financial services laws. However, those involved in the scheme argue that government services are exempt from these laws.
The Insan scheme, managed by Wavpay Fintech Holding Sdn Bhd, offers accident and injury coverage of up to RM10,000 for all Selangor residents aged between one month and 80 years. Registration for the scheme is done through the Wavpay ewallet app. Wavpay Fintech Holding Sdn Bhd comprises Wavpay Systems Sdn Bhd, Wavpay E-Commerce Sdn Bhd, and Wavpay Credit Sdn Bhd, with MBI owning 49% shares and CT Frank Technology (M) Sdn Bhd owning 51% shares.
Opponents argue that the state government illegally obtained personal data to register people for Insan without their knowledge, in breach of the Personal Data Protection Act 2010 (PDPA). In response, Selangor Mentri Besar Datuk Seri Amirudin Shari clarified that the data was obtained from the Election Commission’s voters list, which is publicly available for purchase. The names were used to pre-register potential recipients for insurance coverage, and those individuals were required to verify their identities by submitting a selfie with their identity cards.
Other allegations have been made, with Sasha Lyna Abdul Latif, Bersatu legal and constitution bureau deputy chairman, claiming that the state violated the Financial Services Act (FSA) 2013. Sasha Lyana stated that individuals entering into a contract to acquire an insurance policy must be aware of the contract terms, know the identity of the insurance company, and accept the offer. Former Selangor exco member Datuk Teng Chang Khim, who is also the chairman of Wavpay Fintech Holding, countered this argument by stating that the contracting parties in this case are the state government and the insurance company, not the insured individuals who are the beneficiaries.
Another allegation is that Wavpay is operating like a loan shark by offering loans through its app. Wavpay provides various financial services, including deposits, remittance, cash loans, and auto insurance. PAS member Nushi Mahfodz questioned the inclusion of money lending in the state’s ewallet system. Teng responded by pointing out that including loan facilities in ewallet apps is a common practice, with other operators such as Touch ‘N’ Go and Shopee also offering loans through their apps.
Teng clarified that the state government set up a holding company, Wavpay Fintech Holding, to comply with legal advice. The state government invested RM10 million into the holding company, which owns Wavpay Systems Sdn Bhd, Wavpay E-Commerce Sdn Bhd, and Wavpay Credit Sdn Bhd. Wavpay Credit has a money lending license to offer micro-credit to individuals who cannot obtain loans elsewhere.
Teng addressed the allegations of breaching personal data laws by stating that it is legal to purchase electoral data from the Election Commission, as it is considered open data. Constitutional and administrative law lecturer Prof Dr Nik Ahmad Kamal Nik Mahmood concurred, stating that exemptions in the Personal Data Protection Act allow government use of data for public purposes. Prof Dr Nik Ahmad Kamal emphasized that the data was used to benefit the people in the context of providing insurance coverage.
Credit: The Star : News Feed
