KUALA LUMPUR, Aug 5 (Bernama) -- Bank Negara Malaysia (BNM) is advancing several key initiatives to boost digitalisation in the country, as a future-ready system needs more than new technology and business models.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said the central bank has released a Discussion Paper on Artificial Intelligence (AI) today, outlining the central bank's regulatory and developmental approach, including priority areas for industry-led collaboration and responsible adoption of AI in financial services.
"By the end of this year, we will issue an Exposure Draft on Open Finance, setting out our vision for a data-driven and customer-permissioned data sharing ecosystem.
“We will publish a Discussion Paper on Asset Tokenisation, outlining potential use cases and safeguards for safe adoption of tokenisation," he said in his opening address at the MyFintech Week 2025 here today.
Abdul Rasheed emphasised that a future-ready system calls for secure digital identity and data sharing frameworks, robust data governance, effective cybersecurity and a regulatory foundation that enables inclusive, responsible and trusted innovation.
He added that the recently launched Digital Asset Innovation Hub enabled experimentation with real-world use cases, such as programmable payments and supply chain finance.
These efforts complement BNM's regulatory sandbox and the Securities Commission’s initiatives, which provided a regulatory framework for digital asset investments since 2019, he said, noting that digital assets were increasingly shaping financial services, offering efficiency and new delivery models.
Abdul Rasheed said digital assets’ potential is significant and cannot be ignored, and emphasised that BNM’s approach continues to be guided by clear principles.
“We are open to innovation that brings genuine value to the economy and supports productive use cases. But we also remain cautious of developments that introduce undue risks or operate outside the safeguards needed to preserve financial stability and public trust,” he said.
He said the central bank is also enhancing the wholesale payment systems to support market resilience and cross-border flows, including exploring the future of money through ‘Project Mawar’ -- BNM’s wholesale central bank digital currency initiative -- and collaborations with the BIS Innovation Hub.
Abdul Rasheed said digitalisation is transforming insurance and takaful, with innovations like digital roadside assistance.
“Digital banks, as well as digital insurers and takaful operators that will soon be licensed, are set to bring fresh thinking, digital-native models and a sharper focus on underserved segments, improving customer experience and catalysing broader transformation across the industry,” he added.
BNM is also fostering innovation through the Climate Finance Innovation Lab under the Joint Committee on Climate Change with the industry.
The initiative brings together public, private and philanthropic players to test new financial instruments, including those based on Islamic finance, that can cohesively address environmental and socioeconomic risks.
Themed ‘Ideate, Innovate, Co-create: Shaping the Future of Finance’, the third instalment of MyFintech Week 2025 was organised by BNM, the Securities Commission Malaysia, the Asian Institute of Chartered Bankers, Fintech Association of Malaysia, and Malaysia Digital Economy Corporation, held from Aug 4-7.
-- BERNAMA
