Coordinated efforts, shared learning among OIC states essential for digital transformation, says Fahmi

ISTANBUL: Malaysia believes that coordinated efforts and shared learning among Organisation of Islamic Cooperation (OIC) member states are essential to drive the next wave of digital transformation, says Communications Minister Fahmi Fadzil.

By working together, he said member states could address shared challenges – from regulatory barriers to cybersecurity risks – and unlock the full potential of digital payment systems.

“Malaysia’s emphasis on expanding digital payment adoption has also been pivotal in driving financial inclusion, particularly for rural communities,” he said during the exchange of views on the Digital Transformation of Payment Systems in the OIC member states on Monday (Nov 4).

The session was held at the 40th session of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC) in Turkiye.

Fahmi noted that Malaysia’s journey towards digital transformation has been shaped by a collaborative approach involving the government, the financial industry, and international stakeholders.

He also stated that Bank Negara Malaysia plays a central role as a regulator, facilitator and advocate, ensuring that regulatory frameworks remain aligned with technological advancements.

“This partnership approach has enabled us to build a resilient, competitive, and inclusive payment landscape,” he said.

To this end, Fahmi said Malaysia has focused on building a resilient, inclusive, and efficient payment ecosystem, guided by four key strategies.

“The first strategy is to ‘Futureproof Digital Infrastructures’. We recognise that a robust infrastructure is the backbone of any thriving digital economy,” he said.

In this regard, he noted that Malaysia has made it a priority to develop robust payment infrastructures to enhance resiliency, explore innovative solutions, and mitigate potential disruptions and risks while ensuring scalability and adaptability to new technologies.

The minister said the second strategy is ‘Fostering a Vibrant Digital Financial Services Landscape’ and Malaysia has embraced digital innovation within its banking sector, marked by the introduction of digital banks and e-money solutions.

Meanwhile, he said the third and fourth strategies were ‘Strengthening Cybersecurity’ and ‘Supporting Technological Adoption for Regulation and Supervision’.

Hence, he explained that Malaysia is on track to achieve the Financial Sector Blueprint target of more than 15% compounded annual growth of e-payment transactions per capita between 2022 and 2026.

“This is on the back of the 20% growth to 343 e-payment transactions per capita in 2023 as compared to 285 in 2022, which is equivalent to each Malaysian making one e-payment transaction in a day,” he said.

He also noted that Malaysia is actively working to improve the efficiency of cross-border payments, reducing transaction costs, increasing speed, and enhancing transparency.

Earlier, Fahmi had bilateral meetings with Turkiye Treasury and Finance Minister Mehmet Simsek and the United Arab Emirates (UAE) State Minister Ahmed Ali Al Sayegh on possible cooperation and investment within the digital infrastructure and technology.

Fahmi arrived in Istanbul on Nov 3 for a working visit until Nov 5, as well as to attend COMCEC.

The ongoing OIC economic conference has highlighted the challenges and policy recommendations on the digital transformation of payment systems among member countries. – Bernama