25-8-2023 (JAKARTA) Vietnam’s central bank has signed an agreement to participate in an initiative with five other Southeast Asian countries aimed at establishing cross-border payment mechanisms. This collaboration will include Indonesia, Malaysia, Thailand, the Philippines, and Singapore, with the goal of connecting their respective payment systems, including the use of QR (quick response) code technology for retail transactions.
The agreement was reached during a meeting of the finance ministers and central bank governors from the 10-member Association of Southeast Asian Nations (ASEAN) in Jakarta.
Additionally, Indonesia, Malaysia, and Thailand have agreed to facilitate cross-border transactions for financial assets such as equities and government bonds denominated in local currencies.
Bank Indonesia governor Perry Warjiyo stated during a press conference that this initiative is not only aimed at facilitating trade and investment but also enhancing resilience against global uncertainties, including exchange rate fluctuations and actions by the Federal Reserve.
Indonesia has already connected its payment system using QR codes with Thailand and Malaysia and is planning to establish a link with Singapore later this year.
ASEAN, a regional bloc comprising more than 600 million people, has faced challenges and delays in its efforts to integrate its economies, which collectively amount to USD 2.3 trillion, through initiatives such as trade agreements, investment cooperation, market connectivity, and harmonized standards and customs procedures.
