Malaysia’s FinTech industry is one of the most developed in Southeast Asia.
The government has also offered funding to upcoming innovators in the country’s fintech industry. There are a few entities that specifically finance the FinTech industry:
This encourages potential innovators by setting aside necessary funds and creating a favorable business environment. These initiatives are some of the ways through which the government has powered the industry to grow rapidly within a short period of time.
The Fintech industry of Malaysia has also grown with regard to the demand of Fintech companies in the country. A 125% increase in mobile banking transactions were reported in 2020, with over 100% increase in E-remittance in 2020. This growth has allowed the fintech market of Malaysia to be able to challenge the markets of other countries and present itself as a major player in the regional fintech scene.
Developments and changes to the Digital Laws of Malaysia also serve as proof of the growth of fintech in Malaysia. In December 2020, the central bank released a licensing framework for digital banks.
The increasing prominence of fintech in the country has led to increased regulatory amendments in Malaysia to ensure that the government is able to monitor the fintech companies all over the country.
FinTech companies in Malaysia can also apply for the Malaysia Digital (MD) status. With the MD status, they are granted tax incentives and other benefits such as pre-approved headcount for foreign talents registered under the Malaysian entity.