Bay Group Holdings Sdn Bhd (CapBay), a Malaysian supply chain financing provider and peer-to-peer (P2P) financing platform, and Ultrack Technology Sdn Bhd (TrackerHero), a provider of security workforce management solutions, have sealed a memorandum of understanding (MoU) to accelerate digital adoption and growth among small and medium-sized enterprises (SMEs) in the security services sector of Malaysia.

The duo said in a statement on last Wednesday that this first-of-its-kind partnership combines fintech innovation with security technology to support over 1,300 licensed security firms.

TrackerHero is enabling SMEs to adopt advanced workforce management technologies without upfront costs, while CapBay has committed MYR 200 million ($47.44 million) in financing to remove financial barriers to adoption.

Through this MoU, security SMEs will gain access to digital solutions such as artificial intelligence (AI)-enabled patrol systems, real-time operations management, and compliance tools.

Previously limited by high upfront costs, these technologies are now made accessible through CapBay’s financing support, enabling SMEs to digitalize operations and secure larger government and corporate contracts.

Malaysia Digital Economy Corporation (MDEC) is a strategic partner in this collaboration, aligning the initiative with its Malaysia Business Digitalization Initiative (BDI) program.

“Digitalization is critical for strengthening Malaysia’s security industry under Ministry of Home Affairs (KDN)’s oversight. I commend TrackerHero for leading the transformation, CapBay for enabling access to financing, and MDEC for steering Malaysia’s Business Digitalization agenda,

“Collaborations like this empower security industry SMEs to operate more efficiently, maintain compliance, and contribute meaningfully to national security and economic growth,” said Haji Omar Mokhtar bin A Manap, Political Secretary to the Minister of KDN.

Ang Xing Xian, Co-founder and Group Chief Executive Officer of CapBay, said the collaboration with TrackerHero represents more than financing — it strengthens Malaysia’s economic backbone by enabling SMEs to embrace digitalization and deliver higher-value services.

“By integrating financing with digital workforce management, the partnership empowers security industry SMEs to operate more efficiently and adopt the latest technology to stay competitive,” he added.

Izzat Hanif, Co-Founder and Chief Executive Officer of TrackerHero, shared that this partnership is about execution at scale — bringing financing and technology together so security industry SMEs can digitize without friction.

“With CapBay and under the umbrella of MDEC’s digitalization agenda, we are tackling the industry’s toughest pain points: transparent operations, verifiable compliance, and data-driven efficiency,

“Our goal is a stronger, future-ready security ecosystem that can compete regionally and serve the public interest with confidence,” he added.

Anuar Fariz Fadzil, Chief Executive Officer of MDEC, said this partnership reflects the spirit of the Malaysia Digital Business Digitalization Initiative, which is to accelerate digital adoption across industries.

“By bridging fintech and technology providers, initiatives like this empower SMEs to scale, innovate, and contribute meaningfully to Malaysia’s vision of becoming a digitally driven nation,” he added.

The collaboration also includes support from the Faculty of Artificial Intelligence, Universiti Teknologi Malaysia (UTM), a strategic research partner of TrackerHero, reinforcing the ecosystem driving digitalisation in Malaysia’s security sector.

Looking ahead, CapBay and TrackerHero see this as a starting point for broader impact.

The model will be extended to other industries with similar workforce and operational challenges, including logistics and facilities management, further advancing Malaysia’s ambition to become a digitally driven nation, said the statement.

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