Malaysia, Australia Sign MOU For Financial Services Enhancement

Vanessa Doctor

20 May 2010

Bank Negara Malaysia has signed a memorandum of understanding with the Australian Treasury to facilitate cross-border cooperation between the two countries' financial services sectors.

Among the points agreed are mutual capacity and human capital building in the financial services industry, the exchange of information and experience in the legal, regulatory and supervisory frameworks, facilitating the development of financial infrastructure, and enhancing cross-border financial activities, with particular focus on Islamic finance products and services.

The deal strengthens a previous accord signed in August 2009 which seeks to explore cooperation on Islamic finance matters.

"These efforts represent an important step in establishing a collaborative partnership between Malaysia and Australia to provide greater synergy towards strengthening the interlinkages between these two key financial centres," Bank Negara said in a release.

Islamic finance has been predicted to see a rise in investments over the next years, especially after proving itself resilient at the height of the 2008 global financial crisis. Malaysia is reputably the Asian country to beat when it comes to Shariah-compliant products and services, given its wide investment presence in the Middle East. Australia, meanwhile, has also stood its ground during the crisis, making it an apt destination for financial growth.