Financial sector key to Malaysia's transformation under 13MP
He said the sector must remain adaptive, competitive and inclusive, while safeguarding trust, integrity, and resilience at its core.
Amir Hamzah said Malaysia's financial sector has made commendable strides over the decades, and has strengthened its foundations, broadened access, and embraced digital transformation under the Financial Sector Blueprint 2022– 2026.
'The sector now contributes meaningfully not only to gross domestic product, but to national development outcomes -- from small and medium enterprises financing and Islamic finance leadership to digital payments and social protection mechanisms. Yet progress must continue.
'Under 13MP, the financial sector is identified and recognised as one of seventeen high-growth, high value and high impact strategic sectors that will support enhanced economic diversity,' he said in a special address at the MyFintech Week 2025 here today.
Amir Hamzah said the financial system must evolve as a catalyst for the country's transition to a value-creation-based economy by fostering a culture of innovation.
Turning the aspirations of 13MP into reality would require unwavering commitment, innovative policies, and close cooperation across all sectors of society, he added.
'I call upon financial institutions to lead by example. As the first sector to develop and adopt the Future Skills Framework, it is essential to continue investing in people – promoting cross-functional mobility, diverse teams, and communities of practice to build a learning and adaptive financial system,' he added.
Amir Hamzah outlined four strategic imperatives that will guide the way forward, namely F-I-N-D, which stand for 'Foster, Invest, Nurture, and Democratise'.
Moving forward, he said Malaysia must continue to scale solutions that blend digital innovation with community engagement, particularly for informal workers, gig economy participants, and microenterprises.
'Financial literacy must also be prioritised, particularly among youth, women, and rural communities. These efforts are essential to strengthening our social safety net and building lasting financial resilience,' he said.
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Asean News Headlines at 10pm on Tuesday (Aug 5, 2025)
Malaysia * Rising govt debt under control, directed at development, says Anwar * MCMC probes viral video of 'influencers' giving scraps to homeless man * Boeing aircraft deal driven by demand, strategic interest, says Anwar * Use 'Sulawesi Sea' and not 'Ambalat' to refer to contested maritime area, says Tok Mat * Opposition lawmakers' claims show they haven't read 13MP document, says PM * Govt to kick off Budget 2026 consultation session on Aug 7, says Fahmi * CAAM, Boeing team up to improve KLIA air traffic ahead of expected passenger surge * Sex worker caught in the act during Sandakan police raid * Respect process of law in probe of Zara Qairina's death, says Home Minister * Structural reforms continue to underpin Malaysia's resilience, says Bank Negara Governor * Health Ministry to engage food content creators to promote healthy eating, says Dzulkefly * Family wants AG to hold inquest into Zara Qairina's death * Court of appeal dismissed former special needs student's appeal in bullying suit * Defence closes case in Zayn Rayyan neglect trial, verdict on Oct 31 * Govt developing AI guidelines to combat online scam, to be ready early 2026 * Proposals on unexplained wealth, monthly pensions to be studied, says Amir Hamzah * Teacher claims trial to sexual assault of 11-year-old student * Dewan Rakyat lacks clear mechanism for no-confidence vote, says Beluran MP * MCMC questions influencer trio over 'leftovers' video * Decomposing body of elderly woman found in locked Kuala Krai flat Singapore * Tycoon pleads guilty in graft case * Singapore-made bot amble matchmakes strangers virtually - without profile photos * Singapore jails Malaysian over scheme to buy phones worth more than S$45,000 with stolen credit card details * 'She had a whole life ahead of her': Boyfriend mourns Singapore's Yishun fatal crash victim * Elderly man in Singapore charged after he allegedly molested, performed sex act on 'vulnerable' man * CEO of sports car distributor accused of offences including multiple counts of false trading in Singapore Indonesia * Indonesia police detain former eFishery CEO who faked data * Two foreign tourists held over robbery targeting money changers in Bali * 18-month jail sentence for sandals thief sparks corruption debate in Indonesia * Bali trial opens for American man accused of drug distribution * Two Chinese nationals dead in Bali boat accident: authorities Thailand * PM Anwar's four wins as Asean Chair, according to veteran Thai journalist * Thailand's foreign tourist numbers fall 6% as regional competition intensifies * Thaksin's niece files complaint over false claims of being a "Cambodian spy" * Thailand approves US$600mil deal for Swedish fighter jets * Thailand plans $572 million stimulus spending and will compensate border conflict casualties * Thai Cabinet approves 10mil baht compensations for fallen troops, police, 8mil baht for killed civilians * Thailand's monitor lizards tipped as next big 'economic animal' in luxury leather * Bangkok seeks sustainable ceasefire ahead of high-level GBC talks * Ceasefire, terms of reference main topic of Thai-Cambodia talks, says Defence Force chief Philippines * Inaugural patrol bolsters defence * Philippine inflation at near six-year low, paves way for rate cuts * Philippines' Marcos strikes defence deals in India Vietnam * Vietnam issues food safety control procedures for exported fresh durian * Vinh Long province seeks to develop diverse tourism experiences in Vietnam * Vietnam facing worsening African swine fever outbreaks * Unexploded bomb found during flood clean-up in Dien Bien, Vietnam Myanmar * Schools and hospital reopen in Nawnghkio town, over 3,400 students return to classrooms * 2 million stimulant tablets seized in southern Myanmar Cambodia * French woman found dead after disappearing during solo run near Angkor Wat * Opinion - Why the SEA Games must remain untouched by politics Laos * Nine dead, over 58,000 affected by floods in Laos * Lao Provincial party secretary, governor replaced as govt extends reshuffle Brunei * Brunei represented at Asean Ride 2025 in Indonesia * Brunei to enhance inclusivity of public sports facilities * Stronger stakeholder commitment needed towards Brunei's Vision 2035 Aseanplus * Anwar calls for deeper appreciation of Asian history, free from colonial narratives * Thailand and Cambodia should reach common ground in peace talks by Aug 7, says Anwar * Thailand-Cambodia talks an early success towards a full resolution, says PM * Sultan Ibrahim arrives in Russia for maiden state visit * Cricket-India's Gill celebrates first series as captain with dramatic win * QuickCheck: Is there a fake letter bearing the Works Minister's name about gratuity payment ceremony? * Athletics-Bednarek labels Lyles 'unsportsmanlike' after post-200m scuffle * Readying Beijing for more rain * Students rally in Dhaka for a new polity amid turmoil * Travel and funding ban for overseas activists * Torrential rain in Taiwan kills four over past week * Unearthing Hiroshima's forgotten dead * Removal of loudspeakers on border with North * Oil falls as Opec+ proceeds with September output increase * Cambodia-Thailand conflict negotiation, govt debt in focus at Dewan Rakyat today * Australia awards navy frigate contract to Japan's Mitsubishi Heavy * Chinese actress Zhao Lusi accuses agency of wage theft, threats * Ringgit extends gains vs US$ amid rate cut talks * Palestine, Taiwan join Hiroshima ceremony for first time on 80th anniversary * Hong Kong issues highest weather warning, as rains shut schools, courts and hospital wards * Nine Malaysian firms make the cut in Forbes Asia's Best Under A Billion 2025 * Asian markets track Wall St rally on Fed rate cut bets * Beijing lifts rain alert after evacuating over 80,000 * Australia lifts foreign student cap to 295,000 and prioritises South-East Asia * Barges carrying fireworks ablaze in Japan, five flee into sea * China's Baidu to deploy robotaxis on rideshare app Lyft * Thousands join Bangladesh rallies, concerts one year after Hasina's ouster * Jeju to host K-Culture Festival, offers fully-paid trip to three wheelchair-using M'sian BTS fans * Platforms to rein in aggressive discounting * 'KPop Demon Hunters' songwriter Vince to release new single with G-Dragon * Japan sets record high temperatures, worries mount over rice crops * Jailed rapist refuses to quit Australian state parliament * Court orders Caprice to remove defamatory Instagram posts about businessman * Oil edges down as traders weigh Trump's latest India threat * Hong Kong police investigate mangled body found on street * Japan sets record temperature of 41.8 deg C * Thousands join Bangladesh rallies, concerts one year after Hasina's ouster * India deploys rescue teams as flood swamps Himalayan town * Pakistan police arrest 120 workers of ex-PM Imran Khan's party ahead of protest * US reaffirms commitment to strengthen defence, security diplomacy across Asean, says PM Anwar * Ringgit ends higher against US dollar on Fed rate cut hopes * Hong Kong's booming wealth sector to lead hiring and office expansion, HKMA says * South-East Asia's rising golf star Jeeno Thitikul of Thailand is now the No. 1 in the Rolex Women's World Golf Ranking * Google offers to blur sensitive sites on its map amid Seoul's security concerns * China announces phased implementation of free preschool education * Malaysia's 'it' couple, Bella Astillah and Syed Saddiq, are also the star-twosome after being awarded the 'hottest duo' title at Melodi Awards * Actress Bella Astillah had to present award to ex-husband's rumoured fling * China twins score 666 points in crucial exam, astonish many with coincidence * Trump says 'getting very close' on extending China trade truce * Trump says he will 'substantially' raise tariffs on India over Russian oil purchases * Motor racing-Cadillac will add value as 11th F1 team, says McLaren's Brown * Malaysia in final running for Unesco Executive Board seat * India hits back at Trump's threat over Russian oil purchases * Australia regulator says YouTube, others 'turning a blind eye' to child abuse material
The Sun
3 hours ago
- The Sun
Financial service providers increasingly adopting AI: Bank Negara survey
KUALA LUMPUR: Financial service providers in Malaysia are increasingly adopting artificial intelligence (AI), according to the central bank's AI Survey 2024. The survey found that in 2024, 71% of banking institutions and development financial institutions, and 77% of insurance and takaful operators had implemented at least one AI application. 'Notably, in 2024, 71% of banking institutions and DFIs had implemented at least one AI application, an increase from 56% in the previous year. Similarly, 77% of ITOs had adopted at least one AI application, compared to 58% in the previous year,' according to Bank Negara Malaysia's (BNM) discussion paper on 'Artificial Intelligence in the Malaysian Financial Sector' today. BNM said over 60% of banking institutions and insurers view AI as a strategic priority over the next one to three years. 'This trend looks set to continue in the coming years, as over half of the respondens agreed that AI has the potential to generate significant new value for both their organisations and consumers.' The central bank stressed it remains vigilant to developments in AI and closely monitors its usage across financial service providers. 'As AI technologies and the state of adoption in financial service providers continue to grow and evolve, we recognise that AI use may introduce new risks that are not adequately addressed by the existing regulatory framework.' BNM said an escalation in supervisory focus may be considered if AI-related risks become more material, in line with the principles of parity, proportionality, and neutrality. 'For example, due to widespread use of AI applications in critical functions or to replace human decision making. Where relevant, we may explore the need to introduce new regulatory expectations should the need arise in the future,' it said. The central bank said it closely monitors five technological developments and innovation in the financial sector to shape its future regulatory and supervisory approach on AI. The discussion paper seeks to share and obtain feedback on BNM's posture on responsible AI innovation in the financial sector; the proposed regulatory approach for AI, as well as industry guidelines on responsible use; and general development approach including priority areas for greater innovation and industry-led collaboration. BNM said it aims to facilitate and encourage responsible adoption and use of AI across the financial sector in a manner that will advance better consumer outcomes and its broader policy objectives. 'This means that while new innovations, such as AI, are given the opportunity to flourish, associated risks that may negatively impact system-wide stability, consumer outcomes, and confidence in the financial sector will need to be managed effectively.' BNM interviewed select local financial industry players throughout 2024 and issued an updated industry-wide survey to gain insights into recent advancements on AI within the Malaysian financial sector. The AI Survey 2024 received responses from 1,207 financial service providers.
The Sun
3 hours ago
- The Sun
BNM laying regulatory groundwork to ensure responsible, inclusive and trusted innovation in financial sector
KUALA LUMPUR: Bank Negara Malaysia (BNM) is developing regulatory groundwork for three emerging technologies – artificial intelligence, open finance and asset tokenisation – to ensure innovation in the financial sector is responsible, inclusive and trusted. Governor Datuk Seri Abdul Rasheed Ghaffour said digital assets are increasingly shaping financial services, offering efficiency and new delivery models. 'Their potential is significant and cannot be ignored,' he said in his speech at MyFintech Week 2025 today. Abdul Rasheed stressed that the central bank is 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.' At the same time, he emphasised that the central bank remains 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. Abdul Rasheed outlined three forthcoming regulatory initiatives as part of BNM's efforts to prepare the financial system for future trends, 'First, we released a Discussion Paper on Artificial Intelligence today (Tuesday), outlining our regulatory and developmental approach, including priority areas for industry-led collaboration and responsible adoption of AI in financial services.' Second, Abdul Rasheed said, by year-end this year, it will issue an Exposure Draft on Open Finance to set out the central bank's vision for a data-driven and customer-permissioned data sharing ecosystem. Third, BNM will publish a Discussion Paper on Asset Tokenisation outlining potential use cases and safeguards for safe adoption of tokenisation. Abdul Rasheed said Malaysia's net-zero targets demand innovative financial solutions, while an ageing population calls for inclusive and forward-looking financial policies in long-term welfare, healthcare and social protection. 'The financial sector is being reshaped by three powerful forces: digitalisation, sustainability and demographic shifts. Technologies such as generative AI and blockchain are transforming business models and redefining consumer expectations.' On a separate development, the governor said that as Malaysia approaches the final phase of the Financial Sector Blueprint 2022-2026, BNM and the Securities Commission have begun work on the next phase. 'BNM and the Securities Commission have begun work on a new set of priorities and strategies beyond 2026,' he said, adding that BNM is working closely with the SC to align their visions, recognising that Malaysia's financial future must be built on coherence and shared purpose. The next iteration will ensure our financial system continues to evolve with clarity and ambition,' Abdul Rasheed said. Looking back, he concluded that the Financial Sector Blueprint 2022-2026 has shaped a more inclusive, resilient and innovation-ready financial sector. 'But the future demands greater agility, deeper collaboration, and bolder thinking,' he said.
