Malaysia is well-positioned to lead deeper financial integration within ASEAN, even ahead of its chairmanship in 2025, Dr. Amina Josetta Kayani, executive director of the Association of Banks in Malaysia said in a statement today.
Amina, while speaking, underlined three critical areas where Malaysian banks can push forward the integration: trade finance, wealth management, and cross-border payment efficiency.
Amina said, “In the realm of trade finance, it has huge potential for banks in Malaysia to use digital technology, such as blockchain, to facilitate cross-border trades in an easier manner.” According to her, the reduction of trade documentation and a homogenized regulatory framework throughout ASEAN could reduce the costs of transactions and even the enhancement of transparency of regional businesses dramatically. Cooperation efforts such as the ASEAN Single Window would only augment the efficiency of trade.
As Amina says, the numbers of high-net-worth individuals have been increasing in ASEAN, and this is one window through which Malaysian banks can maximize their integrated wealth management, especially catering to clients looking forward to diversifying their portfolio across borders. This trend is supported by the easy implementation of the ASEAN Collective Investment Schemes Framework, which is possible in cross-border investment offerings.
Amina also emphasized the need for better cross-border payment systems. She stated that already, Malaysian banks had initiated QR payment linkages with Thailand, Indonesia, Singapore, and Cambodia, allowing people to make transactions through mobile banking and e-wallet applications. Furthermore, Malaysia is part of the Bank for International Settlements’ Project Nexus, connecting multiple domestic instant payment systems around the world to enhance the speed and reduce the cost of cross-border transactions.
Amina pronounced that ABM is utterly committed to upgrading preventive measures around ASEAN’s financial systems by improving on what already exists due to the risks posed by fraud and scams under the digital economy. In her campaign, she went for a regional fraud intelligence network that allows for live data sharing on fraudulent dealings among member banks to step up threat detection and reaction.
Other than the above challenges, the growth of fintech and strategic sectors like semiconductors and green technologies also poses a challenge and an opportunity for the Malaysian banking sector. Amina said that ABM focuses on ensuring that member banks stay competitive by promoting collaborative innovation with fintech firms and aligning financing with sustainability goals, particularly through green sukuk initiatives. Amina hopes that these efforts would not only push regional financial integration but will also create a more resilient and inclusive economic setup in Southeast Asia.
For more such content: https://apaccioworld.com/
