Just over the weekend, Bank Negara Malaysia along with the Monetary Authority of Singapore has launched a real-time payment system. Prior to the launch, an announcement of the linkage was announced back in 2021.
Real-time payment system linkage launched between Malaysia & Singapore
Following up on the joint linkage, Bank Negara Malaysia shares that this joint venture would allow users to experience a cost-effective, instant and safe transaction between cross-border users. Other than that, this real-time payment system is the first joint linkage that allows the participation of non-bank financial institutions, providing access to users at a larger scale.
Source: The Malaysian Reserve
According to local newspaper MalayMail, Governor Datuk Abdul Rasheed Ghaffour said in a statement that cross-border payments that are fast, secure, and cost efficient possesses great benefits, especially towards the small business community that works closely between Singapore and Malaysia.
“The linkage enables us to reap these benefits towards our shared growth and prosperity, while laying the foundations for scalable cross-border payment networks across and beyond Asean,” said the statement.
Source: Fintech News
With that said, users are now able to transfer funds up to RM3,000 equivalent or $1,000 SGD daily, by using the recipient’s mobile number or virtual payment address.
This cross-border QR payment system will be first available to Maybank, CIMB and Touch ‘n Go digital users in Malaysia, gradually onboarding other financial institutions. As for users Singapore, the service will be made available to customers of Liquid Group, Maybank Singapore, OCBC and United Overseas Bank.
However, it’s worth noting that Singaporean users will undergo a phased approach, where numbers of eligible users will be increased gradually, until early next year.
Source: MalayMail
This marks an important milestone for both Malaysia and Singapore as it allows better interconnectivity amongst each other, aligning with the objectives of the Asean Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments.
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Also read: Alipay+ Partners PayNet to Promote Seamless Payment for Inbound and Outbound Malaysian Travellers
