Malaysia To Leverage FinTech In ASEAN Trade Agreements – Tengku Zafrul

KUALA LUMPUR, Jan 10 (Bernama) -- Malaysia is exploring how financial technology (FinTech) can serve as a key instrument in all the agreements signed between Malaysia and ASEAN, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Currently, there are 16 multilateral and bilateral agreements between Malaysia and ASEAN, soon to be 17 next week.

While he did not elaborate further on these agreements, he emphasised that FinTech is a foundational tool for operationalising them.

“We are looking at how FinTech can be a major instrument, enabler, or foundation in all the trade agreements we have signed, such as the ASEAN Single Window (ASW) agreement and the Regional Comprehensive Economic Partnership (RCEP),” he said.

Tengku Zafrul was speaking at the 'Forum Ilmuwan Malaysia MADANI KPT Series Four: Using Technology in Financial Services to Drive Prosperity and Inclusivity' on Friday evening.

The event, moderated by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, was streamed live on Communications Minister Fahmi Fadzil’s Facebook.

Tengku Zafrul spoke alongside Malayan Banking Bhd president and group chief executive officer (CEO) Datuk Khairussaleh Ramli, and Funding Societies Malaysia Group chief operating officer, co-founder, and CEO Wong Kah Meng.

Meanwhile, Tengku Zafrul highlighted the crucial role of FinTech in integrating ASEAN trade and expressed hope that it would bring greater inclusivity.

“Currently, intra-ASEAN trade accounts for only 22 to 23 per cent of total ASEAN trade, largely dominated by large companies. 

"But as you know, ASEAN is driven by small and medium-sized enterprises. Hopefully, FinTech will bring more inclusivity to the game,” he said.

While FinTech holds immense potential, Tengku Zafrul acknowledged challenges, including technological accessibility gaps.

“When we talk about FinTech in ASEAN, or even in Malaysia, not everyone has access to the technology, which is another issue we need to address,” he said.

He also expressed hope that technology and its inclusivity could benefit as many Malaysians as possible, especially as many have questioned whether they have felt the impact of GDP growth.

Tengku Zafrul urged a whole-of-government and whole-of-nation approach, calling for collaboration among stakeholders, including investors, academia, and policymakers, to build an inclusive and sustainable future.

-- BERNAMA