How is Malaysia's fintech industry fueled by Singapore?

It is not a surprise anymore that the fintech industry is developing at rapid steps around the world. The digitalization, which led to the improvement in various industries is visible and tangible in every aspect of our lives and it shows no signs of slowing down. As time passes the progress will become even noticeable.

Developing countries in the Asia-Pacific region are quickly conquering the global fintech industry. Further development in this sector is only a matter of time and will take the Asian continent to new heights, firmly strengthening its leadership position. Perhaps it was anticipated because in this region we have a country like Singapore, which is the stalwart and epitome of a modern country with high technologies.

Over the past 50 years, Singapore has shown the world how to develop in different directions. Its strategically advantageous geographical position gives it access to an entire region that is larger than Europe. In terms of economic potential, population, as well as demographic indicators, Singapore has every chance of showing Asia to the world and the world to Asia.

At the same time, Singapore has become an example for its neighbors as well. The fintech success in the country has become a driver for Malaysia mostly because these two countries have very close ties. 

We should also say that fintech is helping Malaysia become a bit freer in their daily endeavors.

Considering the fact that many Malaysian laws are based on their local religion, Islam and Islam can be a bit too restrictive, it causes problems. With fintech though they can easily access different industries without necessarily having to come across law enforcement.

For example, the gist of how online gambling in Malaysia works is that any citizen or company found engaged in online gambling is subject to finance charges which could lead to prison. But thanks to fintech involvement through a sector like Blockchain, the country could become more liberal in that field.

Singapore's international experience is based on economic stability, tough regulatory frameworks and effective administrative regulations. Thanks to its favorable geographic location, Singapore serves as an ideal launching pad for larger and more populous countries such as Indonesia, Malaysia, Thailand, Vietnam, and the Philippines.

The development of Fintech in Singapore is largely due to the government's efforts to stimulate the launch of new projects and their development, and as has been said above it spilled over in other countries as well.

Malaysia and fintech

In Malaysia, due to population growth and a strong B2C model (business-to-consumer), demand for fintech has grown significantly over the past 5 years. In part, this accelerated development is due to the government's relentless efforts to transform the country into a cashless society.

Local banks are looking to bring fintech into the business. For example, in 2017 Maybank entered into a strategic partnership with Ant Financial Services Group (China). The goal of such cooperation is to open new opportunities for entrepreneurs and stimulate market growth in the region. For example, Alipay users traveling in Malaysia can use contactless payment services at a variety of retail outlets, from high-end department stores, duty-free shops to popular hotels.

Malaysia is gradually flourishing as a fintech ecosystem, mobile banking is booming and more people are turning to digital wallets. It is only a superficial list of projects and innovations that the Asian country is trying to incorporate into its society. One of the main problems that could be very threatening for the development of fintech in the country is cyber attacks. But in this regard, Malaysia can seek some advice and support from Singapore which has already shown to the world that it is possible to tackle modern challenges effectively.