The Securities Commission Malaysia (SC) today signed a financial technology cooperation agreement with Indonesia’s Otoritas Jasa Keuangan (OJK) to establish a collaborative framework to develop the Fintech ecosystem in both markets.
OJK Indonesia is an Indonesian government agency that regulates and supervises the financial services sector, which includes banking, capital markets, and non-bank financial industries sectors.
The agreement between the SC and OJK aims to facilitate information sharing on emerging trends and regulatory developments in Fintech, provide joint innovation project opportunities and facilitate referrals of Fintech businesses seeking to operate in each other’s jurisdiction. It was signed by SC Chairman Datuk Syed Zaid Albar and OJK Vice Chairman Ir. Nurhaida at the Virtual Innovation Day organised by OJK.
“The signing of this MoU marks an important milestone for both the SC and OJK. We now share the intention to promote innovation in our respective capital markets. Through greater collaboration, both Malaysia and Indonesia can develop and scale up our Fintech industries in support of the ASEAN Economic Community,” said Syed Zaid.
ASEAN represents one of the world’s fastest-growing[1] regions with a population of 670 million[2] and an expected GDP of USD4.7 trillion by 2025. Given its emerging middle class and high internet penetration rates[3], ASEAN have the potential to become a thriving center for innovative businesses and services.
Since 2017, the SC had established six Fintech agreements with global regulators such as the Hong Kong Securities and Futures Commission (SFC), the Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC), among others.
As part of its digital agenda, the SC had introduced various fintech initiatives since 2015, such as being the first jurisdiction in the Asia-Pacific to regulate equity crowdfunding (ECF). This was followed by regulatory framework for peer-to-peer (P2P) financing, digital investment management (DIM) services and digital asset exchanges (DAX), among others. In May this year, it introduced the framework for online distribution of capital market products through e-Services platforms like e-wallet or e-payment service providers.