Page 10 - KLSCCCI MAY 2022 - eBullentin 406

本期焦点

Advancement of

Digital Banking Creates

Potential Opportunities

The recent advancements in
Malaysia's digital banking sector,
which saw five consortiums
obtaining digital bank licences,
are set to attract more foreign
investors to the country.
Malaysia is the second
country in ASEAN to issue digital
banking licenses, after Singapore,
which issued four in 2020. Hong
Kong also issued eight licenses in
2019, leading the Asia Pacific
region.
The advent of digital
banking in Malaysia stands to
not just disrupt the country’s
financial and banking
industries, but also jumpstart
other fintech and digital payment
companies in the same ecosystem.
Digital banks offer banking and
financial services completely online,
without the need for traditional
brick-and-mortar branches. Access to small inexpensive financing facilities can help
SMEs will be the biggest beneficiaries of existing SMEs to manage better and scale-up, or can help new
digital banks as they contribute half of startup companies to get off the blocks with capital to buy
Malaysia’s GDP as well as the working startup stock, inventory, or equipment.
population. The target segments for digital banks in Malaysia can be
Bank Negara Malaysia Governor Tan Sri broken into 2 main categories--Retail Market and SME Market.
Nor Shamsiah said, “Digital banks are
expected to further advance financial
inclusion. By adopting digital technology more Retail Market
widely for everyday transactions, we can Malaysia has a population of 32.7 million as of June 2020.
significantly increase opportunities for our At 2019, 27% of Malaysians are part of the rural population,
society to participate in the economy – by while 29% are youths aged between 15 to 29 years old.
overcoming geographical barriers, reducing
transaction costs, and promoting better Other potential market segments are foreign workers and
financial management.” international students residing in Malaysia and require at least
a channel to receive cash, make payment and transfer money
SMEs to benefit the in and out from their origin countries.
There are about 3.1 million non-citizens in Malaysia as of
most from digital banks 2019, and about 89.4k international students studying in both
private and public universities in Malaysia.
The awarding of digital banking licences
is set to provide a major boost to small
businesses and entrepreneurs from the bottom
40 (B40), and allow companies to enable
microfinancing, involving smaller loans that
come attached with fewer conditions than
the traditional loans from banks.
Easier access to financing will provide B40 households Youth Foreign workers
significant benefits to micro SMEs which make Rural residence Millennials
up 98% of all businesses in the country. Self-employed International
Gig workers students

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