Malaysia to benefit from renminbi’s regained momentum

KUALA LUMPUR: Malaysia is expected to benefit from the renminbi’s regained momentum in the international market due to the country’s position as a gateway to China and Asean.

HSBC Bank Malaysia chief executive officer Mukhtar Hussain said given China’s significance as Malaysia’s largest trading partner and its position as a partner in the Belt and Road Initiative (BRI), the settlement of trade and investments in the RMB will significantly lower costs.

“This will promote greater cross-border trade, as well as investment activity, thus increasing the usage of the currency.

“Small and medium enterprises (SMEs) can also minimise exposure to exchange rate fluctuations of the US dollar and reduce the cost of doing business in China by capitalising on the RMB clearing house,” he said in a statement yesterday.

HSBC said the renminbi’s internationalisation seems to have slowed the past year, but behind the scenes, China continues to enhance its financial infrastructure, so as to increase the global usage of the currency. — Bernama