Malaysia establishes fintech cooperation with China's Hong Kong, UAE's Dubai and Singapore

KUALA LUMPUR - Securities Commission Malaysia (SC), the nation's securities regulator, has established cooperation with its counterparts in China's Hong Kong, UAE's Dubai and Singapore.

SC said in a statement Thursday that it had signed a series of innovation cooperation agreements, or "fintech bridges," with several regulators in major financial centers to spur greater cooperation in facilitating and regulating innovations emerging within the digital finance industry.

The regulators include the Hong Kong Securities and Futures Commission, the Dubai Financial Services Authority and the Monetary Authority of Singapore.

The partnership followed the first agreement signed between SC and the Australian Securities and Investments Commission in June.

"Such efforts will promote innovation within capital markets, and enhance the cross-pollination of digital finance concepts which will benefit financial services institutions, startups and investors alike," said SC's chairman Ranjit Ajit Singh.

According to the statement, the fintech bridges will facilitate greater information sharing on emerging trends and regulatory developments. It will also facilitate referrals of innovative businesses seeking to operate in each other's jurisdictions and the exploration of potential joint innovation projects.

SC also expects the digital economy to contribute 20 percent to Malaysia's gross domestic product by 2020.

It noted it was the first jurisdiction in the Asia-Pacific to regulate equity crowd funding in 2015, followed closely by peer-to-peer financing regulations in 2016.