Bank Negara Malaysia (BNM) has signed a memorandum of understanding (MoU) with the National Bank of Cambodia (NBC) to strengthen cooperation in financial innovation and payments via a number of initiatives.

In a statement, BNM said that the MoU will allow it to work closer with NBC to drive financial innovation, as well as foster more efficient and secure cross-border payments between both countries. One key initiative that is set to be implemented is the linking of domestic payment systems in both countries to enable cross-border QR payments. The collaboration between the two central banks is also expected to encourage the use of local currency settlement and to establish a cooperative oversight mechanism that allows for safer cross-border payments.

BNM further said that this MoU is another milestone achieved under the broader ASEAN Regional Payment Connectivity initiative, which sought to link the domestic payment systems of ASEAN countries. This allows each country’s citizens and businesses to conveniently perform cross-border QR payments via their own home country’s apps when visiting other participating ASEAN countries.

For context, the ASEAN Regional Payment Connectivity initiative – which is also aligned with the G20 Roadmap – was officially kickstarted in 2022, with MoUs signed between BNM and four other central banks in the region (Thailand, Singapore, Indonesia, and the Philippines). Between Malaysia and Cambodia, specifically, up to five million merchants from both countries that currently accept QR payments are set to benefit from the BNM-NBC cooperation.

“This MoU demonstrates both countries’ commitment to enhance cross-border payment and local currency settlement. This collaboration will deepen our long-standing cooperation with NBC for the mutual benefit of individuals and businesses in both countries. It also provides the impetus to spur greater innovation and deeper financial integration in support of regional economic development,” said the governor of BNM, Abdul Rasheed Ghaffour.

Governor of NBC, Chea Serey also echoed the sentiment, noting that the collaboration marks a significant step towards enhancing cooperation between the two central banks and countries. “Through the MoU, the NBC and BNM will collaborate to drive financial innovation and improve cross-border QR code payment systems aiming to boost trade activities and financial inclusion in both countries and to promote the use of local currencies in line with ASEAN objectives,” she said.

• TAGS:
• ASEAN Regional Payment Connectivity Initiative
• Bank Negara Malaysia
• BNM
• Chea Serey
• Cross-Border Payments
• Cross-Border QR Payments
• Datuk Abdul Rasheed Ghaffour
• Local Currency Settlement Framework (LCSF)
• National Bank Of Cambodia
• National Bank of Cambodia (NBC)