Bank Negara Malaysia’s (BNM) Governor Dato’ Sri Abdul Rasheed Ghaffour opened MyFintech Week 2025 (MyFW) with a call for deeper collaboration, sharing that this year’s theme, “Ideate, Innovate, Co-Create: Shaping the Future of Finance”, reflected its spirit.

“The challenges before us require whole-of-ecosystem solutions. And the future we are building demands that policymakers, regulators, technologists, investors and innovators sit at the same table,” he said.

He noted that the financial sector is being moulded by three powerful forces: digitalisation, sustainability, and demographic change. Emerging technologies such as generative AI and blockchain are reshaping business models and shifting what customers expect from financial services.

At the same time, Malaysia’s net-zero ambitions require innovative financial solutions, while an ageing population underscores the need for inclusive, forward-focused policies in areas like long-term welfare, healthcare, and social protection.

These shifts, he added, are reflected in the three tracks of this year’s MyFintech Week 2025 programme: Finance for the Future, Finance for Change, and Finance for a Resilient Ecosystem.

Track 1: Finance for the Future

“A future-ready system needs more than new technology and business models. It calls for secure digital identity and data sharing frameworks, robust data governance, effective cybersecurity, and a regulatory foundation that enables inclusive, responsible and trusted innovation.”

The first track zooms in on building a digitally enabled, future-forward financial system. Dato’ Sri Abdul Rasheed highlighted Malaysia’s significant progress in modernising its payment infrastructure, noting that Malaysia now ranks second globally in QR payment adoption.

“DuitNow has become a common feature of our daily life, and regional linkages are expanding, enabling real-time, low-cost transactions across borders.”

He informed that BNM is also elevating wholesale payment systems to support market resilience and cross-border flows. Explorations include the future of money through Project Mawar, the wholesale central bank digital currency (CBDC) pilot, and collaborations with the BIS Innovation Hub.

Digitalisation, he noted, is also transforming insurance and takaful, with innovations like digital roadside assistance emerging as early examples.

“Digital banks, as well as digital insurers and takaful operators that will soon be licensed, are set to bring fresh thinking, digital-native models and a sharper focus on underserved segments,  improving customer experience and catalysing broader transformation across the industry.”

However, he shared that a future-ready system needs more support, which is why BNM is advancing several key initiatives.

“The Digital Asset Innovation Hub, launched collectively with the industry, enables experimentation with real-world use cases such as programmable payments and supply chain finance.”

He informed that these initiatives complement BNM’s existing Regulatory Sandbox and the Securities Commission’s framework for digital asset investments, which has been in place since 2019.

Dato’ Sri Abdul Rasheed also announced three forthcoming regulatory developments. The first is the newly released Discussion Paper on Artificial Intelligence, which sets out BNM’s regulatory and developmental approach to AI in financial services.

Secondly, by this year’s end, BNM plans to issue an Exposure Draft on Open Finance, outlining its vision for a customer‑permissioned, data‑driven data sharing ecosystem.

Finally, the central bank will publish a Discussion Paper on Asset Tokenisation, detailing potential use cases and safeguards to ensure the safe adoption of tokenised assets.

Track 2: Finance for Change

“At its heart, this track recognises that finance must not only support the economy, but also uplift communities.”

The Finance for Change track examines how finance can serve as a force for good, addressing areas such as financial literacy, climate action, inclusive insurance, and social protection.

At its core is Value-Based Intermediation (VBI), which Dato’ Sri Abdul Rasheed highlighted was gaining momentum as a defining feature of Islamic finance. VBI places emphasis on ethical finance, social purpose, and long-term impact.

“Social finance is a vital component of VBI (Value-Based Intermediation). With the right governance and integration, social finance can unlock capital for underserved communities, micro-enterprises, and essential services such as education and healthcare.”

He went on to highlight BNM’s efforts to foster innovation through the Climate Finance Innovation Lab, an initiative under the Joint Committee on Climate Change with industry partners.

The lab brings together public, private, and philanthropic players to experiment with new financial instruments, including those rooted in Islamic finance, aimed at tackling environmental and socioeconomic risks in an integrated and cohesive way.

To further support global changemakers, he announced that BNM, together with the MIFC Leadership Council and six strategic partners such as the World Bank Group and the Islamic Development Bank, has launched the MIFC Global Impact Challenge 2025.

This year’s challenge invites fintech and impact-driven startups to develop solutions that can bolster social resilience and address climate challenges. Submissions are open until 18 August 2025.

Track 3: Finance for a Resilient Ecosystem

“Resilience is more than having capital buffers. It is about building systems that can withstand stress, institutions that can evolve with the times, and people who are equipped to lead change.”

The final track focuses on strengthening the foundations of the financial system to ensure they remain strong, reliable, and adaptable.

As part of this, MyFintech Week 2025 features curated sessions on the fintech funding landscape, anti-scam strategies, cyber resilience, and the development of future-ready talent equipped with the skills, adaptability, and leadership needed for the years ahead.

Dato’ Sri Abdul Rasheed stressed that resilience today must be embedded at every level, from operational continuity and data security to technology governance and public trust.

“As digital adoption grows, so does the potential for scams, cyber threat and third-party risks. Our response must be coordinated and forward-looking.”

A recent example is the National Fraud Portal, he explained, which is a landmark initiative led by PayNet together with regulators, enforcement authorities, and the financial industry.

“It (the National Fraud Portal) enables rapid tracing of stolen funds across financial institutions and thus increases the prospect of recovery.”

On Charting Malaysia’s Next Financial Chapter

As Malaysia nears the final phase of the Financial Sector Blueprint 2022–2026, Dato’ Sri Abdul Rasheed said that it was the right time to reflect on achievements and what’s next.

“The Blueprint has shaped a more inclusive, resilient and innovation-ready financial sector. But the future demands greater agility, deeper collaboration, and bolder thinking.”

BNM is already working on the next phase, he elaborated, with a new set of priorities and strategies that go beyond 2026.

Featured image: Edited by Fintech News Malaysia, based on image by khonkangrua on Freepik