Malaysia's Financial Sector Blueprint 2022-2026 has been unveiled at MyFintech Week 2022. The blueprint sets the vision for the nation’s financial sector development in line with key national economic aspirations.
Five strategic thrusts have been identified to achieve three broad outcomes: finance for all, finance for transformation and finance for sustainability, including a focus on advancing digitalisation of the sector.
The proposed roadmap for advancing digitalisation includes four steps, namely:Futureproofing key digital infrastructures
- Leverage key financial infrastructures for Malaysia’s broader digital ecosystem
- Advance development of an open data ecosystem that is fair and fit for the future
Supporting a more vibrant digital financial services landscape
- Enhance pathways for digital innovations to test, scale and exit
- Support industry-led strategies for digital payments adoption
- Preserve effective oversight of digital business models
Strengthening cybersecurity readiness and responsiveness
- Strengthen system-wide cyber security oversight and capabilities
- Strengthen domestic and global collaborative efforts on cybersecurity
Supporting greater use of technology for regulation and supervision
- Leverage technology to further strengthen Bank Negara Malaysia’s regulation and supervision of the financial industry
- Futureproof the Bank’s data strategy
In his launch speech, YB Senator Tengku Datuk Seri Utama Zafrul said the launch of the blueprint is timely. "In realising the nation’s aspirations, the financial sector has always played an important role – be it supporting families to grow and protect their wealth, or helping businesses expand and venture into new areas. In the next five years, the strategies outlined in this Blueprint will be critical for the financial sector to continue to be the catalyst for reform, drive sustainability and contribute to our collective aspiration of a Prosperous, Inclusive and Sustainable Malaysia,” he said.
In a panel discussing the blueprint, Abdul Rasheed Ghaffour, Deputy Governor (DG), Bank Negara Malaysia (BNM), said the Blueprint has been the hardest to do to date as it is set in a time of uncertainty. At the same time, he noted that it also represents a unique opportunity for the entire economic sector to come together and build a stronger economy.
When asked by moderator Ong Chin Fong, Senior Partner & MD of BCG Malaysia, how the private and public sectors can best partner to advance the digitalisation of the financial sector - with a central bank digital currency (CBDC) and distributed ledger technology (DLT) as possible examples - Alain Yee, who heads ShopeePay Malaysia, named four key areas of collaboration:
- The development of new infrastructure and capabilities, especially the establishing of new critical capabilities such as open data eco-ystems, national registers, advancing shared payment infrastructure, which are all key enablers of data-driven decisions;
- Driving digital literacy and adoption. Banks, e-commerce and e-wallet entities have driven digital adoption more than fivefold in recent years. In 2021, Shopee, working with the Ministry of Finance, successfully garnered more than 1 million uses of their e-wallet, demonstrating the power of this cooperation.
- Building human capital by supporting and scaling government programmes like traineeships
and e-learning programmes.
- Developing and adopting security solutions, such as developing artificial intelligence (AI) models that identify e-fraud with zero human intervention.
Where CBDC is concerned, panelists said the potential is very high that it will make crossborder payments faster, while DLT will ensure the system works well. While the prospect is exciting,
there is still a long way to go, however.
DG Rasheed emphasised that the need for strategies to ensure strong cybersecurity, and noted that advancing common standards and governance will be critical in this arena.
Datuk Yvonne Chia, Standard Chartered Malaysia Chairman, added that creating value propositions and balancing incumbency and innovation will be the way forward, while Datuk Kamaruddin Taib, a key member of the FIDE Forum, commented that a strong task force will be needed to swiftly consolidate collaboration.
Themed Advancing Digitalisation for Recovery, Sustainability and Inclusion, MyFintech Week 2022 features more than 100 speakers and experts on critical issues in finance such as digitalisation and innovation, financial inclusion and sustainability.
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