BNM fosters conditions for financial sector to upscale digitalisation


KUALA LUMPUR: Bank Negara Malaysia (BNM) has set its priorities to foster the suitable conditions for Malaysia’s financial sector to capitalise on digitalisation whereas making certain that attendant dangers are nicely understood and managed successfully by the financial establishments.

Governor Tan Sri Nor Shamsiah Mohd Yunus stated this mirrored the quickly altering know-how panorama, making it nearly not possible for anybody to predict the form and type of the following waves of modifications.

“Enabling competitors and innovation will thus be a key focus. This will see the introduction of latest digital gamers, in addition to enhanced pathways to check and scale digital improvements.

“This will embody efforts to assist speed up the expansion of fintech (financial know-how), particularly Islamic fintech, comparable to for trade-related options, different finance, social finance, and sustainable finance,” she advised Bernama in an e-mail interview following the latest launch of Malaysia’s Financial Sector Blueprint 2022-2026.

Nor Shamsiah stated, alongside this, the central financial institution would additionally put in place safeguards to protect honest shopper outcomes and to handle dangers to the system comparable to these associated to cybersecurity.

She stated the financial institution additionally aimed to future-proof key infrastructures that function the spine of the digital financial system and this consists of making certain that real-time cost methods, information infrastructures and requirements can cater to a variety of gamers and use instances within the financial sector.

This additionally displays the panorama immediately, which is turning into extra various, she added.

Elaborating additional, the governor famous that like many central banks worldwide, BNM is paying shut consideration to the digital asset house, and the alternatives and dangers that include it.

As with any rising growth, the objective is to be certain that Malaysia continues to regulate and supervise to successfully serve the nation’s financial and financial stability mandates.

“That stays unchanged. We are additionally going one step additional by experimenting with central financial institution digital currencies (CBDCs) over the following few years. After all, there isn’t any higher approach to hold tempo with one thing new than to strive it ourselves.

“This is a very thrilling house, with many promising concepts and quite a bit happening. But I need to be clear that we don’t need to merely get caught up in all of the hype and buzz.

“Therefore, in our exploratory efforts, we’ll prioritise use instances which have increased upsides for Malaysia. This is in line with our method to digital innovation. We don’t promote know-how for its personal sake. Rather, it should ship tangible advantages to the financial system.”


The central financial institution, Nor Shamsiah stated, would love to see extra “digital-first” options in financial providers as many features of life are actually achieved on-line and digitally.

This has solely change into extra widespread following the pandemic. Whether it’s distant working, shopping for meals or purchasing, extra persons are used to having the ability to do these items anytime, wherever, on the click on of a button.

“Since the pandemic, these behaviours have solely change into extra frequent. Thus, we would like Malaysians to have digital choices in finance. Some examples are fully-digital claims experiences for insurance coverage and takaful, and seamless funds for day-to-day transactions.

“Let me be clear, this isn’t about forcing prospects to go digital. Rather it’s about providing individuals selections.

“Physical and hybrid choices will nonetheless be out there, however the level is that buyers and companies who’re prepared for the know-how ought to have the option to profit from it,” she stated.

The central financial institution launched the blueprint in January, envisioning that it could drive the financial sector to be agile and resilient to help the nation’s transition to its subsequent stage of growth.

It has recognized 5 priorities to anchor its efforts to promote a financial system that may safe long-term development, planetary well being and shared prosperity.

The priorities are funding Malaysia’s financial transformation, elevating the financial well-being of households and companies, advancing digitalisation of the financial sector, positioning the financial system to facilitate an orderly transition to a greener financial system, and advancing value-based finance by means of thought management in Islamic finance. – Bernama

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