HK and Malaysian central banks agree to boost bilateral cooperation
Hong Kong's and Malaysia's central banks held high-level talks on 2 October and agreed to strengthen ties. Areas include fintech, digital assets, cross-border use of local currencies, and capital market links. A joint working group on stablecoins will be set up.
Hong Kong's Monetary Authority (HKMA) and Bank Negara Malaysia held high-level bilateral talks in Hong Kong on 2 October. The two central banks exchanged information and experience, and held comprehensive discussions on macroeconomic and financial developments, emerging banking regulatory issues, fintech and payment transformation, as well as advancing capital market connectivity, regional use of local currencies and Islamic finance.
They agreed to step up cooperation in several areas. In fintech and digital asset innovation, a policy-focused joint working group will be set up to promote compliant cross-border stablecoin use cases between Hong Kong and Malaysia. Cooperation on tokenisation and digital currencies will be strengthened, including through policy and regulatory exchanges. The two sides also plan to explore data-driven applications, including the Commercial Data Interchange and CargoX, to widen trade finance access for small and medium-sized enterprises.
On cross-border regulatory cooperation, a mechanism will be established to boost cyber resilience and combat fraud and scams. The two central banks also agreed to promote wider use of regional currencies in bilateral trade and investment, and to strengthen connectivity between Hong Kong's and Malaysia's real-time gross settlement (RTGS) systems.
In capital market connectivity, they will explore linking Hong Kong's Central Moneymarkets Unit (CMU) with Malaysia's RENTAS, a multi-currency RTGS and central securities depository. Cooperation on Islamic finance will be enhanced through industry exchanges, talent development, sustainable finance and cross-border investment.
HKMA Chief Executive Eddie Yue said: 'We are delighted to welcome the Bank Negara Malaysia delegation to Hong Kong. This high-level meeting marks a significant milestone in deepening cooperation between the two institutions to support financial market development and economic growth. Based on our shared vision, we look forward to advancing cooperation in fintech and digital asset innovation, improving the efficiency of cross-border regional currency transactions, strengthening market connectivity and fostering the growth of the Islamic finance market.'
