This article first appeared in Digital Edge, The Edge Malaysia Weekly on October 23, 2023 – October 29, 2023
Upon assuming the role of CEO at Meen Tech Network Sdn Bhd in 2021, Yuen Mun Kwun recognised the importance of adopting a forward-thinking approach to distinguish the humble tech manufacturing company in a fiercely competitive market. He was acutely aware that chasing fleeting trends would not suffice to maintain competitiveness in the long run.
Drawing upon his deep interest in technology trends, which the 41-year-old had closely followed since university days when he studied mobile communications, Yuen articulated a vision firmly rooted in the belief that the future of the industry lies in the virtual world.
In August, the home-grown company — which has been manufacturing tech gadgets for more than two decades — took a bold leap and made headlines not just for entering the smartphone market, but also for doing so with a groundbreaking twist: Its smartphones are Web 3.0-enabled.
“We cannot deny that the future is virtual,” Yuen, a co-founder of the company, emphasises.
This conviction is the driving force behind his decision to integrate Web 3.0 capabilities into Meen Tech’s flagship products, the M60 and i18 smartphones. Dubbed “crypto phones”, these devices are at the forefront of integrating blockchain technology and are especially appealing to cryptocurrency enthusiasts who are eager to bring the virtual currency into the mainstream.
With the integration of Web 3.0, Yuen sees an opportunity to merge the digital world of cryptocurrencies with the physical world of smartphones.
Web 3.0 refers to the next phase of the internet, characterised by a decentralised, blockchain-based ecosystem that aims to enable trustless interactions, greater user control over data and seamless integration of blockchain technology into online experiences.
The integration of blockchain into Web 3.0 phones lays the groundwork for secure and efficient value transfers, offering users a level of trust and transparency not previously seen in traditional smartphone technology. These smartphones come preloaded with a range of decentralised applications (or dApps) that allow users to interact with blockchain technology and decentralised services seamlessly. From finance and gaming to healthcare and social networking, Meen Tech’s smartphones empower users to explore a new world of possibilities.
Yuen tells Digital Edge that by incorporating Web 3.0 technology, Meen Tech aims to create smartphones that go beyond mere devices and become gateways to a richer and more interconnected virtual world. To Yuen, Meen Tech’s Web 3.0 phones give ownership and transparency of data and the benefits of a decentralised market directly to consumers through a device that has become a mainstay in today’s culture: the smartphone. In this way, Meen Tech is not solely focused on short-term gains, but rather on laying the groundwork that enhances both company revenue and customer experience.
It was also the reason behind Yuen’s decision to release the smartphone in November last year ahead of its official launch in August 2023, focusing on building an initial user base to kick-start its ecosystem.
Currently, Meen Tech’s smartphones are available for purchase from 50 retail stores across Malaysia, marking a significant milestone for the company. The devices have since garnered a user base of 10,000 individuals, a humble start that Yuen is confident will continue to expand and flourish.
Gaining notice
From the outset, Yuen recognised that the smartphone market is highly oversaturated. It was important to enter the market fully knowing the challenges that lay ahead.
“[Those who already use Huawei,] will go for Huawei, those using iPhone will choose iPhone. They have their fans already. So, [we know] that is not our [target] market. What we are trying to capture are the Samsung and Vivo markets,” Yuen says candidly.
He explains that iPhone and Huawei users are already locked into their own ecosystem. iPhones are connected to MacBooks, iPads and so on. Due to the US trade ban, Huawei has its own operating system and app store.
Samsung or Vivo users are likely to switch to other brands if they are considering a new phone. This means Meen has a window to capture their interest. This is why the M60 and i18 smartphones are priced on a par with Samsung’s flagship phones at RM3,499 and RM2,999 respectively.
The premium phone build and quality with a price to match is to show that Malaysia has the means to offer quality phones, built cheaply in China.
The question that remained was how to entice that market away from the likes of Samsung and Vivo. Yuen figured his two-year experience working in Huawei as project manager during Malaysia’s transition from 2G to 3G infrastructure would come in handy.
“The phone actually [is all at] the same level already. Not many things can be improved with the phone, including the design, cameras and so on. What makes people choose a particular phone right now [are] the benefits, or conveniences, it offers them,” he observes.
So, the answer Yuen sought would lie not in the hardware, but the software.
The aspiration was also to build a Malaysian brand, shares Yuen. Since Meen Tech already had the resources to get its project off the ground and running thanks to its parent company’s history in manufacturing tech gadgets including phones, the challenge was in finding a niche.
The parent company, or “funding company” as Yuen likes to call it, maintains a hands-off approach so as to keep Meen Tech a Malaysian brand. While Yuen would not disclose its name, the China-based Chinese company has a long-standing history of making smartphones, tablets and other gadgets.
“Meen Tech is a Malaysian-registered company. The brand, trademark and owners are Malaysian. All the shareholders are Malaysian as well,” Yuen says.
He stresses that the parent company supports Meen Tech via manufacturing and software and holds no shares in it. Meen Tech operates wholly as a Malaysian company. Thanks to this connection, Meen Tech already has access to the materials, hardware and factory to manufacture its phones — leaving Yuen and his team to focus on their Web 3.0 ecosystem.
To do so, Meen Tech partnered with local Web 3.0 platform provider Meta-M and UME Token Wallet — a crypto wallet working on the Meta-M platform — for its expertise in managing and trading digital assets.
Meta-M aims to create a full Web 3.0 ecosystem under decentralised autonomous organisation (DAO) governance, where crypto management and oversight are handled by a group of organisational leaders instead of a single entity like a bank.
UME Token Wallet is a decentralised digital wallet that stores private keys, allowing users to trade multiple cryptocurrencies like Bitcoin, Ethereum or other tokens and keys.
“UME Token is the wallet, Meta-M is the [Web 3.0] ecosystem for Meen users in the Web 3.0 and blockchain environment,” Yuen explains.
With this in place, Yuen put his marketing strategy to work. Meen Tech is focusing on word of mouth to create a reputation as a local smartphone brand that is on a par with international brands and focusing its Web 3.0 integration solely on users’ ability to earn a passive income as its selling point.
Phone that pays you
To make Meen Tech’s smartphones stand out, Yuen decided on using the strategy of a “phone that pays for itself”.
He reasoned that the phones are comparable to Samsung’s flagship phones in terms of hardware and price. With Meta-M’s platform, users of the smartphones are able to access the crypto markets and use UME Token to make investments. To Yuen, the built-in features make it easy for users to make investments and earn extra income using their smartphones.
When asked if this strategy is merely a gimmick to boost sales, Yuen says building in crypto trading capabilities is its main source of income.
“[The smartphone is only] hardware, and hardware is very cheap. But what makes the company its revenue is the software,” he explains.
In exchange for providing internet cookies, users have access to the crypto platform.
These cookies are not dangerous, as they are small, randomly encoded text files that are not personally identifiable.
In exchange for providing internet cookies, users have access to the crypto platform.
These cookies are not dangerous, as they are small, randomly encoded text files that are not personally identifiable.
The company derives revenue from investments and selling database information to parties such as application or game developers, while users gain revenue as part of their contract with Meen Tech.
Yuen says to ensure client security when using the platform, a strict set of guidelines is followed.
Data protection measures implemented by the company include, but are not limited to, the following: collecting data that is only required for website functionality, integrating trusted payment gateways for e-commerce (although Yuen could not share what gateway Meen Tech uses), encrypting customer data on servers, ensuring all software and systems are up to date with the latest security patches, and performing regular tests and audits.
Outside of being able to trade and purchase cryptocurrencies on its platform, users on Meen Tech’s ecosystem also enjoy a passive payout. The amount of money they will be reimbursed is based on how well the company performs, but as per their contract, Yuen assures there is a daily minimum based on how many valid devices are registered on a user’s account.
This is where the idea of the phone paying itself comes in. Even if users do not carry out any trading themselves, Meen Tech is obligated to give them their money back. This is explained at the point of purchase as part of the “Meen Entrepreneur Programme”.
For example, the average smartphone user who has only one valid phone registered under his name will receive RM10 to RM30 per day for the duration of 12 months. This means that after a year, he will earn a minimum of RM3,650. After the 12-month period, the contract ends and the user will no longer receive those passive earnings. However, by that time, the next model, likely Meen Tech’s M70 or i19, would have been released. Purchasing this new phone will mean the user’s contract is renewed for another 12 months.
To Yuen, this is only the beginning. The spirit of his strategy lies in publicising what he calls his “marketing ecosystem” through word of mouth. The idea is that Meen Tech offers a referral system for users to convince their friends or family members to buy a phone as well.
By successfully doing so, the phone purchased will also be added to the referral’s account. The amount of money that the user receives passively is based on a tier list tied to how many phones he manages to help sell.
“If you buy one [smartphone, or unit], you’ll earn RM10 to RM30 for a minimum RM300 per month, depending on Meen Tech’s revenue. Once he promotes and helps two more people to buy Meen’s phones, he will get promoted to the next rank, where he will now earn RM40 to RM90, with a minimum of RM1,221 per month.
“It goes further to 100 or 500 phones. The more people you sell Meen phones to, the higher the income you will earn. Even if Meen receives zero revenue that month, the minimum payout will be honoured,” says Yuen.
He explains that the ranking system is designed to encourage sales with the draw of turning a referral system into potentially a side job or even a career opportunity. This marketing plan supplements Meen Tech’s ecosystem, as the higher the number of users who are drawn into the ecosystem, the more data Meen Tech is able to use to generate more profits.
Start of Asean expansion
The launch of the M60 and i18 is the start of grander ambitions for Yuen.
“[After] Malaysia, our plan is to list our company, a group holding company in Singapore, then another part will be the ICO (initial coin offering) that will be listed in Hong Kong,” he explains.
An ICO is the process of offering shares of private corporations within the cryptocurrency space and is used to help start-ups raise funds.
Meen Tech’s long-term goal is to expand across Southeast Asia. Its parent company, the unnamed Chinese phone manufacturer, sought to use its experience and resources to develop its own smartphone brand. But it could not do so in China due to the oversaturation of smartphone brands in the domestic market.
“There are almost 700 [smartphone] brands in China. So, it’s totally saturated already,” Yuen says, adding that the Chinese company decided to move south. “Malaysia is the best place to take off in the Southeast Asian market.”
The main reasons Malaysia was selected, according to Yuen, are its geographical location and neutral stance on the US-China trade war, the latter being the reason Chinese smartphone brands are unable to access Google’s Android operating system.
Outside of his tenure at Huawei, Yuen worked in contracting. After a stint working with his father, he found himself at China State Construction Engineering Corp (CSCEC). As the general manager of the sales department for Southeast Asia, he oversaw the company’s growth and sales direction.
“That’s [where I] have the connection with all these countries and that’s why I joined Meen Tech as a CEO — to expand my business in Southeast Asia, [using] my past experience in the corporate world and my network connections,” says Yuen.
Clarifying the confusion
One of the biggest challenges Meen Tech faces in its push for Web 3.0 smartphones is the confusion and uncertainty over the next version of the internet as a whole.
Yuen says, “Web 3.0 and the concept of ‘meta-m’ are still evolving and subject to ongoing development and debate in the tech and blockchain communities.”
As Web 3.0 is still a fairly new concept, it is constantly changing and policies are frequently being developed. All Meen Tech can do is to be confident in embracing this new evolution of the internet and adapt to constant changes as they come, he adds.
Looking to the future, Yuen seeks to expand Meen beyond Web 3.0 and smartphones. While keeping an eye out for the next iteration of Web 4.0, he is focused on expanding Meen Tech’s ecosystem into the metaverse: a single, shared and persistent 3D virtual space where users interact.
Meen Tech is also minting and creating its own cryptocurrency, Meen coins, which will be required for all services on its platform, including advertising. Once this is completed, it will fully enter the crypto trading scene. In the meantime, Yuen plans to hold monthly workshops at its physical stores to educate the public on Web 3.0 and the metaverse.
Yuen hopes Meen Tech will one day be as synonymous with Malaysia as Samsung is with South Korea and iPhone with the US.
“You see the Meen Tech phone, [and you think] ‘Oh, it’s from Malaysia’,” says Yuen. “We want to emulate South Korea, where Samsung is not only the strongest brand but a source of national pride. That is how we plan to position ourselves.”
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