MyFintech Week 2022 and Launch of the Financial Sector Blueprint (2022 – 2026)

YB SENATOR TENGKU DATUK SERI UTAMA ZAFRUL TENGKU ABDUL AZIZ
MINISTER OF FINANCE MALAYSIA

MyFintech Week 2022
and
Launch of the Financial Sector Blueprint (2022 – 2026)

OPENING CEREMONY

24 JANUARY 2022, 9:15 AM

OPENING ADDRESS

Yang Berbahagia Tan Sri Nor Shamsiah binti Mohd Yunus
Governor of Bank Negara Malaysia,

Members of the financial community,

Members of the media,

Ladies and gentlemen,

Assalamualaikum Warahmatullahi Wabarakatuh and a very good morning.

1. I am delighted to be here today at MyFintech Week 2022 and the launch of the Financial Sector Blueprint for 2022 to 2026.
   
   

CONTEXT SETTING

2. We meet today at a time where Malaysia is at a crossroads.
   
   
3. While we continue to strive to become a high-income nation, Malaysia, like the rest of the world, is recovering from a once-in-a-generation pandemic.
   
   
4. While some of us yearn for the good old days marked by familiarity, COVID19 has profoundly changed the way we work, play and interact with each other.
   
   
5. And, as we walk along the path of economic recovery, larger threats are knocking on our door. Climate change, biodiversity loss, and demographic change are no longer hypothetical threats; they are real and urgent.
   
   
6. Make no mistake. These challenges should not be left to our children or grandchildren to solve. The solutions and the embracing of change begin today. And they begin with us, including the financial community.
   
   

THE ROLE OF THE FINANCIAL COMMUNITY THUS FAR

Ladies and gentlemen,

7. Since our independence, the financial sector has been critical to the development of the economy and the realisation of the nation’s aspirations.
   
   
8. Millions of Malaysians have been able to own their own homes, build wealth and protect their families. Malaysian businesses can now transact with customers and suppliers more seamlessly, raise capital to fund day-to-day operations, and expand into new markets.
   
   
9. Between 2011 and 2020 alone, we have seen:
   1. The adult population with deposit accounts increase from 82% to nearly 96%;
   2. Domestic credit to the private sector as a percentage of GDP increase from 108% to 134%; and
   3. e-payment transactions per capita increase from 49 to 170.
   
   
   
10. Spurred by COVID-19, technological advancements in the financial industry have also enabled consumers to enjoy digital solutions throughout the financial value chain. For example, in 2020, we have seen merchant registrations for QR acceptance increase 164% and online banking transaction volumes increase 49%, relative to pre-pandemic levels.
    
    
11. Throughout the pandemic, the financial sector has been instrumental in supporting the rakyat and businesses by extending loan repayment assistance and facilitating the restructuring of borrowing facilities. Between first (1) June to 24th December 2021, more than 2.7 million individual borrowers and over 95,000 SMEs have obtained repayment assistance.
    
    
12. Under the Financial Planning and Resilience Programme or URUS, comprehensive aid is made available for borrowers affected by COVID-19, with a view of putting them on a firmer financial footing in the long run. In that respect, I applaud the banking sector for setting aside an estimated 1 billion ringgit to fund the cost of the programme.
    
    
13. Following the recent floods around the country, I also commend the banking sector for preparing specific relief assistance for their customers that have been impacted by the floods.
    
    
14. Collectively, these efforts speak to the goal of aiding recovery while building long-term financial resilience for borrowers.
    
    
15. Together with efforts by the Government to reinvigorate the economy, we have seen financing to SMEs remaining steadfast, increasing 4.6% as at November 2021. Cumulatively, disbursements of loans during the first eleven (11) months of 2021 was 281 billion ringgit.
    
    

BUDGET 2022 AND DIGITALISATION: FORWARDING THE SDG AGENDA

Ladies and Gentlemen,

16. In the immediate term, these efforts will complement Budget 2022, ensuring Malaysia’s recovery momentum is entrenched, economic scarring is minimised, and the economy returns to its medium-term growth trajectory.
    
    
17. Therein, the Government is committed to:
    1. Support businesses through the Program Semarak Niaga Keluarga Malaysia, or SemarakNiaga, worth 40 billion ringgit;
    2. Strengthen public healthcare facilities in managing COVID-19; and
    3. Continue the sustainability agenda, including the issuance of ringgit-denominated Sustainability Sukuk later this year.
    
    
    
18. When it comes to the agenda of financial inclusivity, the Government is aware that it is not just the availability of digital financial products that matter, but also access to those products. On that score, our digital inclusivity aspirations will remain unrealised without the appropriate infrastructure to support it. To that end, various measures under Budget 2022 will also pave the way for the rakyat and businesses to embrace digitalisation, and this policy is set to continue in future Budgets.
    
    
19. Under Budget 2022, measures include:
    1. 700 million ringgit allocation for our nationwide digital connectivity initiative, JENDELA;
    2. 1.0 billion ringgit under Bank Negara Malaysia’s SME Automation and Digitalisation Facility;
    3. 150 million ringgit for digital content creation for the creative industry; and
    4. 200 million ringgit under the MSME Digitalisation Grant. MyDIGITAL Corporation has also been tasked to implement Malaysia’s Digital Blueprint with an emphasis on public sector digitalisation efforts and nurturing digital talent.
    
    
    
20. On net, the Government’s policies are ready in place to complement the Financial Sector Blueprint’s focus on digital inclusivity.
    
    
21. Moving forward, I urge the financial sector to continue the inclusivity agenda while supporting the nation’s aspirations. As a key pillar of the economy, the financial sector will play a crucial role, with financial stability, inclusion, effective intermediation, digitalisation, and innovation being critical prerequisites moving forward.

FINANCIAL SECTOR BLUEPRINT 2022 - 2026

Ladies and Gentlemen,

22. Today’s launch of the Financial Sector Blueprint 2022 to 2026 will set the course for the development of the financial sector over the next five (5) years.
    
    
23. The strategies laid out in the Blueprint will be critical for the financial sector to navigate the oncoming challenges and opportunities – in turn, complementing the Twelfth Malaysia Plan.
    
    
24.  Key expected outcomes include:
1. advancing digitalisation of the financial sector;
2. providing meaningful choice and access for consumers;
3. increasing the vibrancy of the funding ecosystem to meet Malaysia’s economic needs; and
4. wider adoption of green finance and sustainability practices.
   
   
25. I also look forward to the upcoming entry of digital banks, digital insurers and takaful operators. Their impact to the development of the nation through the use technology and introduction of innovative financial solutions will improve the well-being of Malaysians, foster greater efficiency and contribute towards a more competitive financial landscape.
    
    
26. Moreover, conferences like MyFintech Week 2022, with the theme, “Advancing Digitalisation for Sustainability, Recovery, and Inclusion”, are not just relevant, but also urgent in our efforts to mobilise the financial sector.
    
    
27. Over the next few days, thought leaders and industry practitioners from across the globe will discuss the future of finance, and what it means for Malaysia and the rest of the world. Malaysia has a lot to learn, but I also believe we have a lot to share. It is with that in mind that I look forward to hearing new perspectives and ideas from these sessions.

CALL TO ACTION

Ladies and Gentlemen,

28. Now that our national goals are set and the Blueprint is drawn, it is time to act.
    
    
29. 2022 will not only be a pivotal recovery year for Malaysia, but also a rare opportunity to reform and future-proof ourselves. The road ahead will require nothing less than a whole-of-nation approach involving the Government, regulators, the private sector, civil society organisations, and yes, the financial community.
    
    
30. In this regard, I urge the financial sector to collaborate with the Government in building back better.
    
    
31. As in the past, I am confident that the financial sector will rise to the occasion and be a catalyst for reform, drive sustainability, and contribute to our collective goal of a “Prosperous, Inclusive and Sustainable Malaysia”.
    
    
32. On that note, I would like to thank and congratulate Bank Negara Malaysia for hosting and organising MyFintech Week 2022, and for finalising the Financial Sector Blueprint that will shape the industry for the next five years.
    
    
33. Dengan lafaz Bismillahirrahmanirrahim, I hereby launch MyFintech Week 2022.

Wabillahi taufik wal hidayah, wassalamualaikum warahmatullahi wabarakatuh.