 "'Will integrate India’s UPI with Malaysia’s PayNet': PM Modi on signing MoUs with Malaysia’s PM Anwar")
Prime Minister Narendra Modi and his Malaysian counterpart, Dato’ Seri Anwar bin Ibrahim, took significant steps to deepen the bilateral relations between the two nations by exchanging Memorandums of Understanding (MoUs) and agreements during a formal event at Hyderabad House in Delhi.
Following the exchange, a joint statement was issued which underscored the potential for greater collaboration between the two nations.
During the joint press conference, Prime Minister Modi emphasised the untapped potential in the India-Malaysia relationship, particularly in the areas of emerging technologies. He highlighted the need for enhanced cooperation in fields like fintech, semiconductors, artificial intelligence (AI), and quantum computing.
One of the key announcements was the plan to link India’s Unified Payments Interface (UPI) with Malaysia’s PayNet, a move that could revolutionize digital payments between the two countries.
“We have more potential in our relationship. We must increase our cooperation in the field of new technology areas, such as fintech, semiconductors, AI, and quantum… We will work on integrating India’s UPI and Malaysia’s Paynet,” said PM Modi.
India’s impact on Malaysia’s digital payment market
Malaysia’s digital payment market has emerged as a fertile ground for fintech innovation, which has attracted several Indian startups to the region. Thanks to a rather favourable regulatory environment and a growing demand for digital financial services, Malaysia presents a promising landscape for these companies.
Indian fintech firms like Pine Labs and Razorpay have already made notable inroads, particularly in the digital payments sector, but opportunities remain in areas like insurance, credit management, and short-term lending.
Impact Shorts
More ShortsRazorpay’s acquisition of Curlec, a Malaysian recurring payment solutions provider, marked a pivotal moment in its expansion. Rebranded as ‘Curlec by Razorpay,’ the company has broadened its offerings to become a full-stack digital payment gateway.
This strategic move has allowed Razorpay to serve over 700 businesses in Malaysia, including prominent names like Tune Protect and Mary Kay.
Curlec by Razorpay’s involvement in DuitNow, Malaysia’s real-time payment system which is similar to India’s UPI, further demonstrates its commitment to driving cashless transactions across the country. DuitNow is a part of the larger digital public infrastructure initiative by Malaysia, called PayNet.
By enabling fund transfers through mobile numbers and national IDs, Curlec is contributing to Bank Negara Malaysia’s (BNM) vision of a cashless society.
The success of Indian fintech startups in Malaysia is not just due to their innovation but also because of Malaysia’s supportive regulatory framework. Authorities, particularly Bank Negara Malaysia, have been instrumental in fostering a conducive environment for fintech growth.
Expanding educational and cultural ties
In addition to fintech, the leaders also discussed enhancing educational and cultural ties between the two nations. Prime Minister Modi announced a focus on scholarships for Malaysian students and training programs for government officials.
Under the Indian Technical and Economic Cooperation (ITEC) program, 100 seats will be allocated specifically for Malaysians to pursue advanced courses in fields like cybersecurity and AI.
Moreover, an Ayurveda Chair will be established at Malaysia’s University Tunku Abdul Rahman, and a Thiruvalluvar Chair will be set up at another Malaysian university, further strengthening cultural and educational links between the countries.
Prime Minister Modi expressed his gratitude to Prime Minister Anwar and his team for their cooperation in these initiatives, which reflect the growing partnership between India and Malaysia.
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