Hong Kong, Malaysian central banks strengthen cooperation

Will focus on offshore renminbi business development.

Bank Negara Malaysia and the Hong Kong Monetary Authority have agreed to continue further strengthening cooperation through collaborative arrangements aimed at deepen trade and investment linkages.

The joint efforts will cover offshore renminbi business development and the internationalization of Islamic finance, among others.

Both central banks held a bilateral meeting in Kuala Lumpur yesterday to discuss bilateral economic and financial issues and to consider initiatives that help promote financial market development in Malaysia and Hong Kong.

In the area of renminbi business, BNM said private sector-led dialogues to discuss developments in RMB business will be initiated to facilitate greater trade and investment activities. The first dialogue to do this will be held in Kuala Lumpur later this year.

Another area of discussion is Islamic finance with the first meeting of the joint forum to be held in Hong Kong later this year.

Both central banks will set up a private sector-led joint forum for advancing the development of Islamic finance in Hong Kong.

This is envisaged to open up new business opportunities in Islamic finance in Hong Kong and Malaysia.

HKMA Chief Executive Norman Chan was confident that this collaboration will continue to be fruitful and bring about a win-win situation for both organizations.