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ISTANBUL: Malaysia believes that coordinated efforts and shared learning among the Organisation of Islamic Cooperation (OIC) member states are essential to drive the next wave of digital transformation, said Communications Minister Fahmi Fadzil. By working together, he said the member states could address shared challenges, from regulatory barriers to cybersecurity risks, and unlock the full potential of digital payment systems.
According to BERNAMA News Agency, Malaysia’s emphasis on expanding digital payment adoption has been pivotal in driving financial inclusion, particularly for rural communities, as highlighted by Minister Fahmi during the exchange of views on the Digital Transformation of Payment Systems in the OIC member states. This session was part of the 40th session of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC) held in Turkiye.
Fahmi noted that Malaysia’s journey towards digital transformation has been shaped by a collaborative approach involving the gover
nment, the financial industry, and international stakeholders. He also stated that Bank Negara Malaysia (BNM) plays a central role as a regulator, facilitator, and advocate, ensuring that regulatory frameworks remain aligned with technological advancements.
The minister emphasized that this partnership approach has enabled Malaysia to build a resilient, competitive, and inclusive payment landscape. Malaysia’s focus on building a resilient, inclusive, and efficient payment ecosystem is guided by four key strategies.
The first strategy is to ‘Futureproof Digital Infrastructures’. According to Fahmi, a robust infrastructure is the backbone of any thriving digital economy, and Malaysia has prioritized developing strong payment infrastructures to enhance resiliency, explore innovative solutions, and mitigate potential disruptions and risks while ensuring scalability and adaptability to new technologies.
The second strategy, he mentioned, is ‘Fostering a Vibrant Digital Financial Services Landscape’. Malaysia ha
s embraced digital innovation within its banking sector, marked by the introduction of digital banks and e-money solutions. The third and fourth strategies are ‘Strengthening Cybersecurity’ and ‘Supporting Technological Adoption for Regulation and Supervision’.
Fahmi further explained that Malaysia is on track to achieve the Financial Sector Blueprint target of more than 15 per cent compounded annual growth of e-payment transactions per capita between 2022 and 2026. This growth is supported by the 20 per cent increase to 343 e-payment transactions per capita in 2023 compared to 285 in 2022, equating to each Malaysian making one e-payment transaction daily.
He also noted that Malaysia is actively working to improve the efficiency of cross-border payments, reducing transaction costs, increasing speed, and enhancing transparency. Earlier, Fahmi had bilateral meetings with Turkiye Treasury and Finance Minister Mehmet Simsek and the United Arab Emirates (UAE) State Minister Ahmed Ali Al Sayegh on possible cooper
ation and investment within digital infrastructure and technology.
Fahmi arrived in Istanbul on November 3 for a working visit until November 5, attending COMCEC. The ongoing OIC economic conference has highlighted the challenges and policy recommendations on the digital transformation of payment systems among member countries.
