Let me begin by congratulating RHB Banking Group on this important milestone. The launch of RHBPay – the first bank-owned integrated payment gateway in Malaysia – marks another innovative industry solution towards a more integrated and efficient payments ecosystem. Through its collaboration with PayNet, RHBPay brings together multiple payment options onto a single platform. This helps businesses simplify payment acceptance, reduce administrative burdens and better manage their day-to-day operations.

Ladies and gentlemen,

Digital payments have become an integral part of our daily lives. What began with mainly cards and online transfers has evolved into a vibrant ecosystem, with QR payments and mobile wallets now leading the way. Today, Malaysians can transact anytime, anywhere with ease.

This progress did not happen overnight.  It was driven by a clear vision, commitment and strong collaboration across the industry. Together, we have transformed Malaysia’s payment landscape to what it is today.  More importantly, the impact of this transformation has been felt throughout the country across communities. Beyond convenience, it has fuelled consumption, boosted productivity, and unlocked new business growth opportunities.

While we can take pride on what we have already achieved, an important question still lies ahead: What kind of innovation in the payment space should we champion going forward?

Let me offer three principles that should shape our way forward.

Ladies and gentlemen,

The first principle is: Innovation Must Create Value

Innovation on its own sake is never enough. It must solve real problems, meet real needs and deliver meaningful outcomes.

Our digital payments journey shows what innovation can achieve when guided by meaningful purpose. Through Cashless Redang, a collaborative industry effort, we have shown how digital payments can improve livelihoods on a remote tourist island. Geography is no longer a limiting factor to access modern financial services. Today, digital payments use is widespread across Pulau Redang with local businesses – most of them small merchants – transacting seamlessly without relying on cash. Productivity has increased with merchants reporting sales growth of up to 50%. Improved record-keeping also enables these businesses to access other financial products. Clearly, innovation guided by meaningful purpose can support small businesses and strengthen the local economy.

Another example is our efforts to enhance regional payment connectivity. With over 50 million merchant touchpoints across ASEAN supporting cross-border QR payment, merchants can easily transact with international visitors using payment apps they already know and trust. For Malaysia, more than three million DuitNow QR merchant touchpoints are connected to a growing regional network. Many of these are small businesses. Merchants can now reach more customers, tap into growing tourism flows and generate additional income.

Beyond retail payments, value creation from innovation is equally important in the wholesale space, especially as we explore new and emerging technologies. The three current participants of the Digital Assets Innovation Hub or DAIH are exploring practical use cases of ringgit stablecoins and tokenised deposits to address current frictions surrounding corporate treasury management, capital market settlement and supply chain management. The progress of these explorations are highly encouraging. We are keen to see more players work together with credible partners in the DAIH to address other existing pain points in the financial system and broader economy.

These examples remind us that the true measure of innovation is not how advanced the technology is. Rather, it is the value that it creates. This is the kind of innovation we must continue to champion.

Ladies and gentlemen,

The second principle is that: Innovation Must Be Inclusive

Creating value is only meaningful when it is shared widely. Innovation should not only benefit large corporations or urban centres. It must create opportunities for businesses of all sizes and support communities across the country.

Inclusion begins with enabling access. Every individual and business should have an opportunity to participate in the digital economy. In fact, this has been the key objective of our e-Duit outreach programme. Through e-Duit, we are expanding awareness, building confidence and encouraging adoption of digital payments nationwide. Since 2022, more than 100 e-Duit programmes have been conducted across the country. These efforts have allowed the industry to onboard more than 10,000 merchants. More importantly, it has extended digital payment acceptance to businesses across diverse locations and sectors, including rural and underserved communities.

But access goes beyond reach. Affordability matters too. Cost should never stand in the way of participation. Industry initiatives such as the tiered pricing approach for DuitNow QR have helped make digital payment more accessible by lowering the cost of adoption. We are especially pleased that the industry, including banks such as RHB, have played a key role in supporting these efforts to make digital payments more affordable.

Inclusion is also about choice. Consumers and businesses should be able to choose financial solutions that best meet their needs. We are therefore excited by the prospects of open finance which will be entering into the pilot phase next year. By empowering users with greater control over their financial data and the ability to unlock more personalised financial services, open finance can promote competition, enhance customer experience and spur innovation across the financial ecosystem.

My last point on inclusion is that it should not stop at our borders. Our bilateral payment linkages have delivered clear benefits. But Malaysia's vision for cross-border payments continues to evolve. The next phase is to move towards multilateral connectivity through Project Nexus. By building on our instant payment rail, Project Nexus will enable seamless, secure, and efficient cross-border payments at a greater scale. With the current owners of Nexus representing countries that capture almost a quarter of the global population, the goal is to make international payments more accessible, not only for Malaysians but also for individuals and businesses around the world.

Ultimately, the true measure of success for innovation is not only who it serves but also by how widely its benefits are shared.

Ladies and gentlemen,

The third and arguably most important principle is: Innovation Must Uphold Trust

Trust is the foundation of a sound financial system. Consumers and businesses will only embrace innovative solutions if trust is there. Taking digital payments as an example, it has become an essential part of our daily lives. However, for users to continue using digital payments, they must be confident that their funds are protected, their data is secure, and their transactions are safe.

For innovative solutions to thrive, trust must be earned and maintained. In digital payments, this means ensuring the service is 'ALWAYS ON' delivering reliable, secure and seamless service 24/7. This is achieved through strong operational resilience, robust cyber security and fraud prevention capabilities. Together with strong governance and consumer protection measures, these efforts help strengthen confidence in the digital financial ecosystem. 

The principle of trust is particularly relevant as the industry embraces artificial intelligence (AI). AI, including agentic AI, is poised to reshape the financial sector. It offers strong potential for the industry to further simplify the payments journey, enhance business process efficiency and strengthen risk management.

Yet, the success of AI will not be determined by its capability alone. Consumers and businesses must have confidence that AI is being deployed safely, responsibly and ethically. As AI becomes more integrated into financial services, sustained adoption will be determined by how well it is governed. Clear accountabilities, appropriate transparency and effective oversight is critical in building confidence in the use of AI in the digital financial ecosystem.

At the same time, innovation can help strengthen trust. Take the National Fraud Portal (NFP) for example. Soon, the NFP will be embedded with predictive analytics capabilities that can help the industry detect suspicious activities, identify emerging fraud patterns and enable quicker interventions against evolving scam threats. By harnessing these advanced technologies, we can stay ahead of emerging risks.

However, sustained trust in innovation also depends on informed and empowered consumers. While safeguards built with technology are important, users remain the first line of defence against emerging threats from digitalisation such as online fraud and scams. Malaysians need to be vigilant and must have the knowledge and skills to navigate an increasingly digital financial environment with confidence. This requires sustained consumer education efforts by both private and public sector.

Initiatives such as e-Duit and e-Celik Wang play an important role in supporting this objective. They help individuals use digital financial services responsibly, make informed financial decisions and strengthen their overall financial well-being.

As we continue to advance digitalisation, I encourage all stakeholders to continue supporting programmes such as e-Duit and e-Celik Wang. Building financial knowledge and capability is a shared responsibility. In this regard, I would like to acknowledge RHB for its partnership and support in expanding the reach and impact of these important efforts.

Ladies and gentlemen,

Malaysia’s journey is far from over as the next wave of innovation is already taking shape. Emerging technologies and new ways of making payments will continue to transform the financial landscape. But as we embrace these innovations, our priorities will need to remain clear:

1. Innovation must create value by solving real problems and having a meaningful impact;
2. Innovation must have meaningful reach and benefit the many; and
3. Innovation must uphold trust and confidence in our payment ecosystem.

Our journey has shown what is possible when innovation is guided by these principles. Looking ahead, the next phase of innovation will also demand co-creation and require deeper collaboration. No single organisation can shape the future alone. By bringing together the strengths of the different parts of the private sector and where needed, the regulator, the financial sector can innovate and design financial solutions that address real needs, scale impact and create lasting value.

The launch of RHBPay today embodies this spirit. It demonstrates how innovation when translated into a practical solution, can strengthen our payment ecosystem and deliver better value for businesses and consumers. I would like to once again congratulate RHB Banking Group on this important milestone.

Before I end, I can share our commitment – that Bank Negara Malaysia remains committed to working closely with all stakeholders to shape the next chapter of Malaysia's financial sector – one that is innovative, inclusive and trusted.

Thank you.