Instant P2P Fund Transfers Now Enabled Between Singapore and Malaysia

The Financial Authority of Singapore (MAS) and Financial institution Negara Malaysia (BNM) have unveiled a brand new real-time cost linkage connecting Singapore’s PayNow and Malaysia’s DuitNow.

This facilitates instantaneous person-to-person (P2P) cross-border fund transfers, permitting customers to switch funds between the 2 international locations utilizing solely the recipient’s cell quantity or Digital Cost Deal with (VPA).

The brand new linkage permits for each day transfers of as much as S$1,000 or RM 3,000 and is the primary to contain non-bank monetary establishments from each international locations, thereby increasing its attain.

The Singaporean members on this service embrace Liquid Group, Maybank Singapore, OCBC, and UOB, with DBS set to affix later.

The Malaysian facet includes CIMB Financial institution Malaysia, Maybank, and TNG Digital’s Contact ‘n Go eWallet, with Hong Leong Financial institution scheduled to take part sooner or later.

The service rollout will happen in phases, with TNG Digital providing the outbound service (Malaysia to Singapore) instantly and the inbound service (Singapore to Malaysia) beginning in December 2023.

Following the QR cost linkage launched earlier this 12 months, this new connectivity marks a continuation of efforts to streamline cross-border transactions.

This venture represents a collaborative effort amongst central banks, cost system operators, scheme house owners, and monetary establishments of each international locations.

It’s aligned with broader targets such because the ASEAN Cost Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Funds.

In 2022, the P2P and remittance transactions between Singapore and Malaysia totaled S$2.3 billion and RM7.8 billion, underscoring the significance of this new cost hyperlink.

Ravi Menon

MAS Managing Director Ravi Menon mentioned,

“The PayNow-DuitNow linkage is the fruits of a shared aspiration by Singapore and Malaysia to facilitate cross-border funds between the 2 international locations.

 

This linkage represents one other step in the direction of ASEAN’s imaginative and prescient for regional funds interconnectivity.”

Datuk Abdul Rasheed Ghaffour

BNM Governor Datuk Abdul Rasheed Ghaffour mentioned,

“Cross-border funds which are quick, safe and cost-efficient can present immense advantages particularly for people and small companies in international locations with very shut financial ties akin to Malaysia and Singapore.

 

The PayNow-DuitNow linkage allows us to reap these advantages in the direction of our shared progress and prosperity, whereas laying the foundations for scalable cross-border cost networks throughout and past ASEAN.”