Phnom Penh: In a move to revolutionize financial transactions between Cambodia and Malaysia, the National Bank of Cambodia (NBC) and Bank Negara Malaysia (BNM) have formalized a Memorandum of Understanding (MoU) dedicated to enhancing financial innovation and payment systems.

This agreement was ceremoniously exchanged in the presence of Cambodia's Prime Minister Hun Manet and Malaysia's Prime Minister Yang Amat Berhormat Datuk Seri Anwar Ibrahim, by governors Abdul Rasheed Ghaffour of BNM and Chea Serey of NBC.

The MoU sets the stage for a collaborative effort to escalate financial innovation, focusing particularly on the development of more efficient and secure cross-border payments. This initiative will involve the integration of domestic payment systems to facilitate cross-border QR code transactions. The intention is to not only streamline the payment process but also to fortify the use of local currency settlements and establish a cooperative oversight mechanism to ensure the safety of these transnational payments.

This collaboration is a significant addition to the ASEAN Regional Payment Connectivity framework and aligns with the G20 Roadmap to enhance cross-border payment efficiency. It is anticipated that this advancement will bolster cross-border trade and tourism, with up to 5 million merchants, including small businesses from both countries that accept QR payments, standing to gain from these developments.

Governor Ghaffour remarked on the importance of the MoU in demonstrating the joint commitment to enhancing cross-border payment capabilities and local currency settlements, deepening the countries' longstanding cooperation to benefit their citizens and business communities. He emphasized that the agreement will spark further innovation and financial integration, supporting broader regional economic growth.

Echoing these sentiments, Governor Serey expressed that the day's events herald a pivotal enhancement in cooperation between the central banks. The collaboration through the MoU is expected to drive financial innovation, streamline cross-border QR payment systems, and catalyze trade and financial inclusion across both nations. She underscored the alignment of these efforts with the objectives of ASEAN.