Bermuda Post

Wednesday, Dec 04, 2024

0:00
0:00

Southeast Asia moves closer to economic unity with new regional payments system

In a major step towards economic unity, Southeast Asian nations have launched a new regional cross-border payment system. This move could foster financial integration among participants, bringing the ASEAN bloc closer to its goal of economic cohesion.
The program allows residents in Indonesia, Malaysia, Thailand, and Singapore to pay for goods and services in their local currencies using a simple QR code. The Philippines is also expected to join the initiative soon, according to each country's respective central bank.

This regional payment system comes after the five Southeast Asian countries signed an official agreement last year and reiterated their commitment to the project at the recent ASEAN summit in May. They pledged to work on a road map to expand regional payment links to all ten ASEAN members.

The primary aim of this scheme is to support and facilitate cross-border trade settlements, investments, remittance, and other economic activities to create an inclusive financial ecosystem in Southeast Asia.

Experts believe that retail industries will particularly benefit from an expected rise in consumer spending, which could, in turn, strengthen tourism.

One of the critical objectives of this system is to reduce the region's reliance on external currencies like the U.S. dollar for cross-border transactions, especially for businesses. The strength of the U.S. dollar in recent years has led to weaker ASEAN currencies, hurting economies in the bloc, most of which are net energy and food importers.

By connecting QR code payment systems, funds can be easily sent from one digital wallet to another. These digital wallets can act as bank accounts and can be linked to formal financial institutions.

This system is expected to be particularly advantageous for micro-enterprises and small- and medium-sized businesses, which make up over 90% of businesses in Southeast Asia. It will also benefit marginalized individuals from low-income backgrounds, as it can be used by the unbanked population.

However, challenges lie ahead. Central banks will need to address security and fraud concerns and educate the public to embrace the new payment system. Additionally, there are concerns about potential currency pressures, particularly on the Singapore dollar, as it might emerge as a de facto reserve currency within the region.

Despite these challenges, analysts believe that a unified cross-border digital payment system will foster a sense of regionalism and ASEAN-centrality in managing international affairs, especially in light of escalating tensions among major global powers.

This coordinated action will require strong political will from regional leaders, and its success will determine whether ASEAN members can effectively implement this ambitious venture.

With this new payments system, Southeast Asia is paving the way for economic independence and stronger economic ties with a more integrated financial landscape in the region.
Newsletter

Related Articles

Bermuda Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
'I just lost it' Lowe’s worker fired after 13 years of employment for confronting thieves trying to steal $2K of merchandise
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
×