KUALA LUMPUR, June 25 - The Bank of China Malaysia 2026 RMB Business Promotion Event and the 15th Anniversary Celebration of the Onshore RMB Clearing Bank in Malaysia were held in Kuala Lumpur on Wednesday. Around 200 guests from financial institutions, enterprises, business associations and media organizations from China and Malaysia attended the event.
Sun Shuqiang, Minister Counsellor of the Economic and Commercial Office at the Embassy of China in Malaysia, said in his speech that China has remained Malaysia's largest trading partner for 17 consecutive years, while Malaysia is China's second-largest trading partner and largest import source within ASEAN. In 2025, bilateral trade between China and Malaysia grew by 12 percent year on year, with the share of local currency settlement in bilateral trade rising from just 1 percent in 2009 to about one-fourth in 2025.
He said that since China and Malaysia signed a bilateral currency swap agreement in 2009, the two countries have established a multi-level financial cooperation framework covering local currency swaps, RMB clearing arrangements, cross-border settlement mechanisms and payment system connectivity. In 2025, Bank of China Malaysia processed more than RMB2.49 trillion in RMB clearing transactions, effectively facilitating bilateral trade, investment and capital market connectivity.
Wu Jun, Chief Executive Officer of Bank of China Malaysia, said that 2026 marks the 25th anniversary of Bank of China's resumption of operations in Malaysia, as well as the 15th anniversary of its role as Malaysia's sole onshore RMB clearing bank. Over the years, Bank of China has developed a comprehensive RMB service system covering trade settlement, financing, investment, transactions and treasury management.
He noted that Bank of China currently accounts for more than 60 percent of RMB clearing activities in Malaysia's RMB market and has been named "Malaysia's Best RMB Bank" by The Asset magazine for two consecutive years. In recent years, the bank has promoted connectivity between Malaysia's payment network PayNet and UnionPay as well as WeChat Pay QR code systems, expanding the use of RMB in local consumption and payment scenarios. It has also supported the development of the offshore RMB market and assisted CIMB Bank in issuing a total of RMB6 billion in Panda Bonds. Earlier this year, with support from Bank Negara Malaysia, funds under the China-Malaysia bilateral currency swap arrangement were utilized commercially for the first time, providing greater RMB liquidity to the market.
Mohamad Ali Iqbal Abdul Khalid, Assistant Governor of Bank Negara Malaysia, said that since 2009, Bank Negara Malaysia and the People's Bank of China have continuously advanced cooperation mechanisms including bilateral currency swaps, direct local currency trading, cross-border collateral arrangements, RMB liquidity facilities and RMB clearing, providing strong support for the cross-border use of the RMB and Malaysian ringgit.
He said the increasing use of both local currencies in bilateral trade settlement reflects growing market demand for local currency transactions. Going forward, further expansion of two-way circulation of the RMB and ringgit, along with enhanced cross-border payment efficiency, will support cooperation in trade, investment and financial management, while strengthening regional financial connectivity.
Participants at the event said that with the continued improvement of cross-border payment systems, rapid growth of the digital economy and ongoing international cooperation on the digital RMB, the RMB has broad application potential in emerging areas such as cross-border e-commerce, digital trade and supply chain cooperation, providing new momentum for China-Malaysia economic and trade cooperation and regional economic development.
