Singapore and Indonesia announced the launch of a cross-border QR code payment linkage, allowing customers of participating financial institutions in both countries to conduct retail transactions seamlessly.
Additionally, the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) introduced a real-time payment systems linkage between Singapore’s PayNow and Malaysia’s DuitNow, enabling instant, secure, and cost-effective cross-border funds transfers.
The initiatives aim to enhance regional payment connectivity, promoting economic connectivity and digital integration.
MAS Managing Director Ravi Menon expressed the significance of the linkage, stating, “This linkage represents another step towards ASEAN’s vision for regional payments interconnectivity.”
Indonesia’s Bank Indonesia (BI) Governor Perry Warjiyo highlighted the positive outcomes, stating that it “will promote faster, cheaper, more transparent, and more inclusive cross-border payments.” Both initiatives were launched at the Singapore Fintech Festival.
In addition to these efforts, MAS and BI signed a letter of intent to establish a local currency settlement framework by 2024, aiming to facilitate the settlement of cross-border payments, trade, and investments between Indonesia and Singapore in their respective local currencies.
Participating financial institutions in the Singapore-Indonesia linkage include OCBC, UOB, DBS (expected to join later), Bank Central Asia, Bank Mega, Bank Rakyat Indonesia, among others.
For the Singapore-Malaysia linkage, Liquid Group, Maybank Singapore, OCBC, UOB, CIMB, Maybank, TNG Digital (with DBS and Hong Leong Bank expected to join later) are involved.
The initiatives are anticipated to enhance cross-border payments’ cost, speed, access, and transparency, fostering economic ties and tourism between the nations.