Memorandum of Understanding on cooperation in Regional Payment Connectivity signed on 14 November

Bali, Indonesia. Bank Indonesia (BI), Bangko Sentral ng Pilipinas (BSP), Bank Negara Malaysia (BNM), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT) have all signed a Memorandum of Understanding (MOU) on Cooperation in Regional Payment Connectivity (RPC) on 14 November on the sidelines of the G20 Leaders’ Summit.

This milestone marked the start of Indonesia’s chairmanship of the Association of Southeast Asian Nations (ASEAN) in 2023.

During the event, the keynote address was delivered by Indonesia’s President, His Excellency Joko Widodo

During the remarks, President Widodo highlighted the importance of concrete joint collaborative action when addressing global challenges. He also expressed appreciation to the governors of the five central banks for their commitment to accelerating regional payment connectivity.

The RPC is set to become a major contributor to promoting inclusive growth and accelerating regional economic recovery. Cross-Border payment is set to facilitate trade, tourism, remittance, financial deepening, and other economic activities. This is beneficial for MSMEs who want to participate in international markets.

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The cooperation is expected to include various modalities such as QR codes. This effort comes in an era where digital transformation is needed. The initiative may also include other countries in the region, and potentially partner countries outside the region.

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“This MOU underscores ASEAN’s commitment to achieve regional payments interoperability and connectivity by 2025 to enable cheaper, faster, and more transparent cross-border payments. ASEAN’s effort is aligned with the G20’s goal of addressing existing frictions in global cross-border payments, creating new business opportunities and enabling inclusive growth,” shared Ravi Menon, Managing Director of MAS.

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