Malaysia and China have significantly increased the use of their respective local currencies in bilateral trade, with transactions in the yuan and ringgit rising from around 5% to 18% of total trade, said Prime Minister Datuk Seri Anwar Ibrahim.
However, he stressed that the development should not be interpreted as Malaysia moving away from the US dollar.
“This is not necessarily de-dollarisation. The US dollar is still key in terms of financial transactions,” he said at the launch of Ant International’s Global Development Centre at Tun Razak Exchange on Tuesday.
Malaysia has been expanding the use of local currency settlements in cross-border trade in recent years as part of efforts to reduce reliance on the US dollar and manage foreign exchange risks more effectively.
The Finance Ministry previously said such arrangements involving Malaysia with China, Thailand and Indonesia have grown substantially over the past 16 years.
Anwar said Malaysia’s engagement with China goes beyond government-to-government cooperation, involving broader policy collaboration in areas such as finance, technology and digital development that benefit both nations.
He also highlighted Ant International’s decision to establish its global development centre in Kuala Lumpur, noting that other firms have only set up regional bases in Malaysia.
Ant International, a Singapore-based global digital payments and financial technology provider, offers services including cross-border payments, merchant solutions, SME digitalisation tools and financial technology services.
The Kuala Lumpur centre will focus on developing technology and commercial solutions for global markets from Malaysia, while also creating high-value jobs and nurturing local talent.
Anwar said the move reflects strong investor confidence in Malaysia’s stability and policy direction.
He added that as Putrajaya works on finalising an AI Governance Bill, the government hopes to incorporate industry input to ensure the framework aligns with international best practices.
“We want to make sure that we are up to the state of the art because the bill will complement existing frameworks, including the Cybersecurity Act and data protection regulations,” he said.
Anwar also said digital trust will play a central role in Malaysia’s development as a digital nation, particularly as artificial intelligence transforms commerce, credit systems, risk assessment and global trade networks.
