Singapore’s Monetary Authority (MAS) and Indonesia’s Otoritas Jasa Keuangan (OJK) have renewed a key Memorandum of Understanding (MoU), significantly expanding their collaborative efforts in financial technology. The new agreement builds on a 2018 pact and specifically targets emerging opportunities in digital financial assets and the application of artificial intelligence (AI) in financial services.
The deepened partnership will focus on several key initiatives. Both regulators have agreed to share knowledge and best practices, promote cooperation between their respective financial industries, and refer promising FinTech firms to participate in each other’s regulatory sandbox programs. This “sandbox” component is critical, as it allows companies to test new technologies in a controlled environment under regulatory supervision.
Furthermore, the MoU aims to facilitate the cross-border flow of information for FinTech firms, streamlining operations for companies looking to expand in the ASEAN region.
Hasan Fawzi, a chief executive at OJK, highlighted the practical goals of the collaboration, stating that through “joint pilots and knowledge-sharing” in areas like AI and digital assets, the regulators aim to “foster innovations, ensure consumer protection, support MSMEs and financial inclusion.”
Leong Sing Chiong, Deputy Managing Director at MAS, echoed this, noting the “strong, longstanding bilateral partnership” and a “shared commitment to fostering innovation” to serve markets across ASEAN. The renewed pact signals a unified front from two of Southeast Asia’s largest economies to create a more integrated and innovative digital finance ecosystem.
Sources: Monetary Authority of Singapore, FinTech News Singapore
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By Ji-seo Kim
