BNM, Four ASEAN Central Banks Sign Agreement To Advance Cross-Border Payment Connectivity
Author Avatar
bank negara malaysia

Bank Negara Malaysia (BNM) has signed a memorandum of understanding (MoU) with the central banks of Indonesia, the Philippines, Singapore, and Thailand to further advance their cooperation in regional payment connectivity (RPC). The agreement is expected to bring about faster, cheaper, more transparent, and more inclusive cross-border payment processes between the five countries.

In a joint statement, BNM said that the cooperation – which will include several modalities, including QR code and fast payments – seeks to help accelerate regional economic recovery and promote inclusive growth. It will support and facilitate economic activities such as cross-border trade, investment, remittance, tourism, and financial deepening, as well as introduce a more inclusive financial ecosystem in the region.

In particular, micro, small, and medium enterprises (SMEs and MSMEs) are expected to benefit from the RCP cooperation as they will enjoy more opportunities to participate in international markets, said BNM.

duitnow qr public bank
(Image: The Malaysian Reserve)

Additionally, BNM noted that this initiative could be expanded in the future beyond just the existing participants to include other ASEAN countries, especially since it supports ASEAN’s shared aspiration for connected payment systems that will enable seamless and affordable cross-border payments across the region. In fact, it may even consider other partner countries outside the region.

BNM governor, Tan Sri Nor Shamsiah stated that this initiative highlights the importance of central bank collaboration in supporting the development of next-generation payment connectivity. “Realising the vision of an ASEAN regional network of fast and efficient cross-border payment systems will advance our digital ambitions and further deepen financial integration for the benefit of the region’s economic development,” she further said at the signing ceremony.

(Image: Bank Negara Malaysia)

Representatives of the other central banks also share similar sentiments, noting as well that this MOU is a significant milestone in paving the road for further advancements, and in addressing any long-standing pain points in cross-border payments.

This initiative is the latest in a long line of endeavours by BNM to advance Malaysia’s cross-border payment services, which has been deemed to be crucial as Malaysia is a small and highly open economy. To date, Malaysia has successfully enabled cross-border QR payments with Thailand and Indonesia, with similar efforts made to connect with Singapore and the Philippines as well. Beyond the ASEAN region, BNM also participated in international level projects, such as Project Nexus and Project Dunbar.

(Source: BNM)

5 1 vote
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Banking Technology Articles
Post Image
What Can You Do With an Expired Cheque?
Desiree Nair
- 5th June 2017
Suddenly realised that you still have an expired cheque that has not been cashed? Don’t worry, we’ll show what to do to get your money, read on!
Post Image
This Is GO+ By TNG eWallet, The New Investment Feature That Earns Daily Returns
Alex Cheong Pui Yin
- 26th March 2021
The new investment feature in Touch ‘n Go (TNG) eWallet, GO+, has now been made available to more […]
Post Image
DuitNow Is Coming Soon: Here’s What You Need To Know
Pang Tun Yau
- 22nd October 2018
Received an SMS about DuitNow recently? Here’s everything you need to know about the new instant funds transfer service.
Post Image
Maybank To Permanently Move Secure2u Activations From Maybank2u App To MAE App
Alex Cheong Pui Yin
- 20th September 2022
Maybank has notified customers that it is permanently moving its Secure2u activation from the Maybank2u app to the […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image