by Fintech Information Malaysia
July 30, 2020
For fintech to thrive and attain its full potential, Malaysia should set up a conducive and complete fintech ecosystem the place all trade individuals work in the direction of the identical targets, mentioned Datuk Wira Dr Hj. Rais Hussin Mohamed Ariff, chairman of Malaysia Digital Economic system Company (MDEC), the federal government company driving digital transformation and adoption.
Talking on the first episode of the Orbit Discuss Sequence on July 23, Datuk Wira Dr Hj Rais Hussin cited the case of tech large Seize, a startup initially from Malaysia however which later moved to Singapore after failing to boost much-needed funding in its native nation, stating that Malaysia mustn’t reproduce the identical mistake and give attention to making a supportive ecosystem.
“When we talk about supporting and enabling fintech, the ecosystem that we are providing must be complete; not just the financial means or funding means, but also the talent, the regulatory support,” Datuk Wira Dr Hj Rais Hussin mentioned. “Otherwise, you will attract some good guys and then after some time, the good guys will get three or four knocks, look for other places, and eventually go. That’s how you lose companies like Grab.”
Collaboration, communication, and empathy should be emphasised and all trade individuals should work collectively to construct the foundations and capabilities to permit younger, revolutionary entrepreneurs to push their concepts to the subsequent degree, he mentioned.
“The ecosystem has to be a comprehensive ecosystem right from the government incentives, the regulatory framework, to the funding capabilities, or at least enabling funding capabilities,” Rais Hussin defined, noting that such ecosystem should be constructed on steady engagement with trade gamers.
“You cannot work in siloes, in an ivory tower. Those days are gone. When everybody’s views are taken into consideration, and try to help each other … only then you can complete the ecosystem … and then the Grab incident will not happen again.”
Fintech, a key component in Malaysia’s nationwide digital push, ought to have its personal devoted technique that drives the entire trade, “some kind of focus and overall vision,” Rais Hussin added.
Alternatives in Islamic fintech
One explicit trade the place Malaysia might grow to be a world pioneer in is Islamic fintech.
Already a world chief in Islamic finance, Malaysia is in a robust place to harness Islamic fintech alternatives, Rais Hussin mentioned.
In accordance with figures from the Worldwide Financial Fund (IMF), Islamic bank loan development expanded by 8.9% year-on-year in 2018, in comparison with solely 2.5% for typical banks, highlighting rising demand world wide for sharia-compliant monetary providers.
“Malaysia is known for Islamic finance worldwide,” Rais Hussin mentioned. “We have to take advantage and leverage on the huge branding that we have and [focus on leading] Islamic fintech,” he mentioned, including that different international locations together with Singapore at the moment are going after Islamic fintech, realizing the large untapped alternatives there.
But, in accordance with the IMF, Islamic fintech remains to be in its infancy in Malaysia with only a handful of startups and a a lot much less developed sector compared to international locations resembling Indonesia.
“I don’t think Malaysia has missed the boat,” Rais Hussin mentioned. “I think with little tweaking here and there, we should be able to fast-track what it is that we need to do to actually accentuate and advance Islamic fintech.”
“We have universities, talent pools in Malaysia. Many of our talents are working in Dubai, in Bahrain,” he deplored. “We need to relook into the ecosystem. Make sure that [each element of] the ecosystem is complementing each other to be able to do what we need to do.”
The complete video may be discovered right here
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