KUALA LUMPUR: The Labuan Financial Services Authority (Labuan FSA) has officially approved and issued the Digital Banking Finance Licence to Asia Digital Bank (AsiaDB) to help shape the new structure of digital finance innovation and economic development in the post-pandemic era.
Being the first recipient of the Digital Banking (Investment Bank) licence issued by Labuan FSA, AsiaDB said it will now strive to establish its digital presence in Malaysia while looking outwards to ASEAN countries as well as global economies.
In a statement on Friday, chief executive officer Chris Wang said AsiaDB aims to construct a world-leading digital asset trading and self-financing platform, and to promote the transformation of traditional financing into a comprehensive digital finance ecosystem.
"We are very optimistic about the future development prospects of the digital economy in Malaysia and the Asean region, especially in the later stage of the pandemic where industries and businesses will be accelerating and eagerly looking for ways to undergo rapid digital transformation, creating a demand surge in digital financing services, ” he said.
AsiaDB said its digital financing products will incorporate centralised financing services and decentralised financing protocol clusters, combining multiple modules to create a comprehensive digital financing infrastructure.
Through the platform, it will actively carry out multiple tests, and enhance the stability of the platform system and increase the diversity of platform products through recruitment of talents in key areas such as product design and technology development.
In the future, AsiaDB said the platform will be used to further improve the digital ecosystem in the region, by providing core services such as cross-border investment and financing capabilities, digital asset management, as well as cross-border structured trade financing.
"Through the ‘global capital + digital operating’ model, we will also effectively help small and medium-sized enterprises in Malaysia to reduce their operating costs in the form of non-ringgit currency.
"This will also enable high-quality investors from Asean and the world to participate in and share the fruits of regional economic growth, ” it said.
Wang said the current COVID-19 pandemic has spawned a new Asean digital economy blue ocean, citing the recent e-Conomy SEA 2020 report which pointed out that the pandemic resulted in increased utilisation of digital services in Asean, noting the huge potential for digital financing services expansion.
Meanwhile, the signing of the Regional Comprehensive Economic Partnership (RCEP) will also bring forth unprecedented benefits for the development of digital economy especially digital trades.
He added that Asean governments, especially the Malaysian government, have provided strong policy support for the development of digital economy and finance as well as new innovations in financial technology.
This can be seen in the recently tabled Budget 2021, where RM1 billion has been allocated to facilitate digital transformation schemes to help strengthen digital capability.
AsiaDB is a unit of Chinese-funded offshore bank Asia Pacific Investment Bank (APIB), established by China Nanjing Zijin Investment Group Co Ltd. - Bernama
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