Fintech In Malaysia Is Taking Off – If We Do It Right
3 June, 2019
Mohammad Ridzuan Abdul Aziz,
President, FinTech Association of Malaysia (FAOM)
Fintech in Malaysia is growing radically. And as the financal services landscape in the country undergoes a radical shift, other relevant industries are shaken in its wake. The Fintech Association of Malaysia (FAOM) is wasting no time in paving a clear way forward.
We believe it is quickly building upon the values of the association for its members and for the fintech industry to drive the Malaysian digital economy forward.
There are three key matters we would like to highlight to the industry. Firstly our five-pillar strategy; secondly, how we approach implementing the strategy, and finally, the outcomes we expect from its implementation over the next 12 months.
FAOM Five-Pillar Strategy:
Driving the initiatives of the FAOM are five foundational principles for various stakeholders to consider. They help guide the design and execution of comprehensive action plans, adaptable based on relevancy to each stakeholder’s own needs and strategy.
- Promote present and future talent;
- Facilitate funding, scalability, and growth of startup fintech firms;
- Develop storytelling capabilities for effective and sticky branding;
- Focus on fintech innovation & implementation that adds to betterment of humanity; and
- Create conducive internal & external environments for overall growth of fintech industry and Malaysia’s digital economy
While we are primarily non-for-profit, we believe in improving mutual understanding through sharing important perspectives, promoting collaboration across platforms, and strengthening relationships with other similarly driven individuals and organisations.
That’s why we are working twice as hard to generate awareness of our strategy among all stakeholders.
Our Approach: Implementing The Five-Pillar Strategy
With the aim of developing values for the fintech industry and aiding in efforts to grow Malaysia into a high-income nation, two elements guide our approach to realizing our strategy:
- Focus on material initiatives
- Foster a collaborative mindset.
The term material is used to mean initiatives that deliver the most value, which can be implemented quickly, and are aligned with our overarching strategy. To illustrate, when the Securities Commission (SC) worked to engage with the digital asset exchanges community for its input for the pertinent regulations of the RMO Guidelines, our support helped generate awareness of their benefits. The collective industry input we then pulled together on the regulations from various parties served as insight for the SC.
As for fostering a collaborative mindset, it’s crucial to avoid a ‘zero-sum game’ outlook, or operating based on perceived importance that is detrimental to collective value-creation.
What we need is openness for greater adoption of fintech by financial institutions both new and established. We are working towards a new business model built upon a shared ecosystem and digital platform, fueled by trust in safely sharing data for effective partnerships.
The FAOM is optimistic about the prospects of Malaysia growing into a high-income economy sooner through achieving this shift in posture. Healthy knowledge-sharing and openness in discourse would mean significant efficiency leaps via adoption of useful technology. This in turn would accelerate the creation of high-value jobs in many sectors.
Next 12 Months: Expected Outcomes
- Strengthen our influence as a national-level association in enhancing fintech as one of the key elements for Malaysia’s digital economy;
- Obtain sufficient funding from the government and private sector to improve awareness about opportunities in fintech at other major cities, particularly – Georgetown, Johor Bharu, Kota Bharu, Kuching and Kota Kinabalu;
- Co-organise events with key stakeholders such as MDEC, BNM, SC, MaGIC and perhaps MyCreative to enhance the effectiveness of our 5-pillar strategy, particularly through persuasive storytelling.
By sharing our strategy, approach and expected outcomes, we aim to receive support from as many stakeholders as we can; and we invite all parties to share ideas, resources, collaborative proposals, and constructive criticism.
In line with our objectives for the coming year, we are also inviting you to keep your schedule open for the following events , join us and key partners, between 17-21 June 2019:
- MyFintech Week ’19 (https://fintechweek.bnm.gov.my) by Bank Negara Malaysia
- Malaysia Tech Week (https://www.malaysiatechweek.com) by MDEC
See you at these events. We look forward to collaborating with you!
The views expressed in this article are those of the author alone and not the organisers of MyFintech Week 2019