PETALING JAYA: Malaysia is seeing stronger interest from institutional investors in digital assets, including digital currencies, decentralised finance and blockchain technology.
Digital Minister Gobind Singh Deo said this reflects the seriousness with which industries are approaching digital assets.
“As you can see today, the conversation has gained so much traction. The scale of engagement today underscores the importance of the subject,“ he told reporters at the Luno Institutional Digital Asset Conference today.
Gobind said the long-term growth of the digital asset industry will depend on institutional buy-in and adoption, as governance, capital, and innovation from established financial players can accelerate its development.
Several factors are crucial to encouraging adoption, he added, with trust and interoperability being central.
Regulatory frameworks are already in place through the Securities Commission Malaysia and Bank Negara Malaysia. Still, Gobind emphasised that trust must be earned by ensuring safety and security in the digital space.
Consumers, meanwhile, increasingly expect a seamless experience.
“It is equally crucial to have interoperability standards that ensure smooth integration of digital asset systems with existing payment platforms and mobile wallets,“ he said.
Gobind noted that the digital asset ecosystem is maturing rapidly, offering traditional financial institutions an opportunity to diversify their portfolios. “With digital currencies, decentralised finance and blockchain technology driving innovation, digital assets are emerging as a mainstream asset class that must be embraced for long-term sustainability.”
The minister said the high level of participation reflected the seriousness with which industries are beginning to approach digital assets, especially when considering the digital economy’s projected role in gross domestic product (GDP) growth over the next decade.
“As you know, the contribution of the digital economy to Malaysia’s GDP in 2023 was 23%. We have a target of 25.5% by the end of this year, and moving towards 2030, we are looking at a higher mark of 30% which I think is achievable,“ he added.
To reach these targets, Gobind said, there is a need to build infrastructure that facilitates digital transformation across industries, while also strengthening regulatory frameworks surrounding digital assets.
He said the Ministry of Digital is working closely with the Securities Commission and Bank Negara, with the blockchain strategy falling under the ministry’s purview.
“This is the reason why, having that as the background and context, conversations like this today, conferences like this today become very important.
“We are very focused on reaching our targets, and one of the key areas we need to build is governance structures that deal with digital assets in the country,“ he said.
The Luno Institutional Digital Asset Conference drew fund managers, family offices, financial advisers, bankers, regulators and Web3 leaders, with official partners including Maybank, MTrustee Bhd, eworld, First Digital, Iota, Blockdaemon, Halogen, cokeeps, Rockwills, EquitiesTracker, pitchIN and Pragmax.