Kuala lumpur: Bank Negara Malaysia (BNM) is taking significant strides to enhance digitalisation across the nation, recognizing that a future-ready financial system needs more than just new technologies and business models. BNM Governor Datuk Seri Abdul Rasheed Ghaffour highlighted these efforts during his opening address at MyFintech Week 2025.
According to BERNAMA News Agency, the central bank has released a Discussion Paper on Artificial Intelligence (AI) outlining its regulatory and developmental approach, which includes industry-led collaboration and responsible AI adoption in financial services. By year-end, BNM plans to issue an Exposure Draft on Open Finance, setting the stage for a data-driven, customer-permissioned data-sharing ecosystem. Furthermore, a Discussion Paper on Asset Tokenisation will be published to explore potential use cases and safeguards for tokenisation adoption.
Abdul Rasheed underscored the importance of secure digital identity, data-sharing frameworks, robust data governance, effective cybersecurity, and a regulatory foundation that fosters inclusive, responsible, and trusted innovation. The recent launch of the Digital Asset Innovation Hub supports experimentation with practical use cases, such as programmable payments and supply chain finance.
These advancements build upon BNM’s regulatory sandbox and initiatives by the Securities Commission, which have provided a regulatory framework for digital asset investments since 2019. Abdul Rasheed noted the growing influence of digital assets in shaping financial services, offering efficiency and new delivery models.
Highlighting the potential of digital assets, Abdul Rasheed stated that BNM’s approach is guided by clear principles, welcoming innovations that add genuine economic value while remaining cautious of developments that pose undue risks or lack necessary safeguards for financial stability and public trust.
The central bank is also working to enhance wholesale payment systems to support market resilience and cross-border flows. This includes exploring the future of money through ‘Project Mawar’, BNM’s central bank digital currency initiative, and collaborations with the BIS Innovation Hub.
Digitalisation is also transforming the insurance and takaful sectors, with innovations such as digital roadside assistance. Upcoming digital banks and insurers, along with takaful operators, are expected to introduce digital-native models and a focus on underserved segments, enhancing customer experience and driving industry transformation.
BNM is promoting innovation through the Climate Finance Innovation Lab, part of the Joint Committee on Climate Change with industry stakeholders. This initiative unites public, private, and philanthropic entities to test new financial instruments, including those based on Islamic finance, addressing environmental and socioeconomic risks.
MyFintech Week 2025, themed ‘Ideate, Innovate, Co-create: Shaping the Future of Finance’, is the third installment of the event, organized by BNM, the Securities Commission Malaysia, the Asian Institute of Chartered Bankers, the Fintech Association of Malaysia, and the Malaysia Digital Economy Corporation. The event takes place from August 4-7.