MoneyMax Financial Services Ltd. (“MoneyMax” or the “Company”) announced last week that it has entered into a joint venture with Tokyo Stock Exchange-listed Aucnet Inc. (“Aucnet”) to jointly develop Singapore’s first online LIVE B2B auction platform (“e-auction platform”).

The joint venture company, SG e-Auction Pte Ltd (“SG e-Auction”), will operate and manage the e-auction platform which allows ASEAN business buyers and sellers to make electronic bids for luxury branded merchandise, and gold and diamond goods. MoneyMax will be the majority shareholder of SG e-Auction with a 51% equity stake while Aucnet will hold the remaining 49% equity stake.

Established in 1985, Aucnet is Japan’s leading real-time auction platform company which provides B2B information distribution services. Aucnet’s online auction platform, with used automobiles, electronic products, flowers and branded items being auctioned weekly, has a membership of 24,578 companies. For the latest financial year 2016, the total value of the transactions on Aucnet’s platform amounted to approximately ¥ 345.2(S$4.22) billion.

Headquartered in Singapore, SG e-Auction will bring together Aucnet’s extensive operational know-how of luxury merchandise auction and experience in the B2B online auction industry and MoneyMax’s strong and established network in the local market. Both parties will jointly develop the e-auction platform and have it customised for users in the ASEAN market.

Through the e-auction platform, SG e-Auction aims to unify and facilitate the selling process for business buyers and sellers amid a fragmented luxury goods trading market. By introducing a successful and proven business model from an established and mature market such as Japan, to the ASEAN market, SG e-Auction aims to expand the distribution markets and channels for buyers and sellers.

This initiative will also tap on opportunities in Southeast Asia’s growing luxury market, largely driven by higher affluence and a rising middle class. Luxury goods retail sales in Asia-Pacific are expected to reach US$134.9 billion by 2019, growing at a 7% CAGR 2014- 20192. Notably, as ASEAN’s key regional luxury hub3, Singapore is expected to benefit from this growth. Coupled with an increased acceptance and rising interest in pre-owned luxury items driven by surging consumerism and brand consciousness, SG e-Auction is poised to capitalise on these market opportunities.

Dato’ Sri Dr. Lim Yong Guan, Executive Chairman and Chief Executive Officer of MoneyMax, said, “We are honoured to partner a reputable and well-established partner like Aucnet, a market leader with more than 30 years of experience in the Japanese B2B auction market. We are excited to bring its successful business model to Singapore and are confident of leveraging on each other’s strengths to grow this business as well as attract other fellow businesses to join this network. Through the network expansion of our channel partners, we hope to establish a fully integrated system in the future and aim to be the premier leading B2B online auction platform for pre-owned branded goods in the ASEAN region.”

On the partnership, Fujisaki Kiyotaka, Representative Director and President of Aucnet, said, “SG e-Auction will develop a new B2B auction market in Singapore, and seek to transform Singapore into a hub for used luxury branded goods in ASEAN. Combining synergies of MoneyMax’s strong branding and distribution market in the region and Aucnet’s extensive information distribution know-how, we are confident of our business model and believe that the auction platform will contribute to the economic development of this region.”