Malaysia and Indonesian regulators sign fintech cooperative agreement
Government agencies in Malaysia and Indonesia have signed a cooperation agreement to establish a “collaborative framework” for fintech development.
The Securities Commission Malaysia (SC) and Otoritas Jasa Keuangan (OJK) will share information on emerging trends and developments in the fintech sector.
Both agencies will create joint innovation project opportunities. They’ll also expedite referrals for fintech firms aiming to operate in each other’s jurisdictions.
SC chairman Datuk Syed Zaid Albar calls the deal “an important milestone for both the SC and OJK”. He adds that it proves an intention to promote innovation between the two countries.
“Through greater collaboration, both Malaysia and Indonesia can develop and scale up our Fintech industries.”
The Association of Southeast Asian Nations (ASEAN) saw more than $485 million invested in 2018 across 68 deals, a 143% year-on-year growth.
Cambridge University data suggests there are more than 600 fintech start-ups within the region. The same study found that many firms are shifting their focus from individuals to small businesses and corporates.
Since 2017, the SC had established six agreements with other ASEAN regulators. These include the Hong Kong Securities and Futures Commission (SFC), the Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC).
Related: Islamic banks take the lead in adopting fintech solutions