SWIFT has been chosen by Malaysian Electronic Clearing Corporation (MyClear), a wholly-owned subsidiary of Bank Negara Malaysia (Central Bank of Malaysia), as an access channel to connect to the new RENTAS system.
RENTAS (Real-time Electronic Transfer of Funds and Securities System) provides multi-currency real-time gross settlement of interbank fund transfers, multi-currency debt securities settlement, and depository services for its members. It enables payment instructions between the participants of the system to be processed and settled individually and continuously throughout the working day.
"The new national payment system will enhance the efficiency of payment and fund flow of the financial sector, and will certainly assist the development of financial markets in Malaysia," says Michael Moon, Director, Payments Markets, Asia Pacific, SWIFT. "It is also an important reflection of our strong commitment and continued effort to provide assistance to the ASEAN countries to adopt international standards and connectivity to the global SWIFT community."
SWIFT, as a channel to connect to the new RENTAS, brings several benefits to the Malaysian financial community.
Participants can enjoy significant cost savings by re-using existing SWIFT infrastructure, by enabling straight-through processing for faster funds transfer and by creating an efficient back office that aims to reduce manual errors and puts emphasis on exceptions rather than on business-as-usual.
By consolidating all domestic and international payments through a single channel, RENTAS participants can see improved operational efficiency because there is no need for a separate connection for exchanging messages with other global correspondents. It is expected that all RENTAS participants will be able to access foreign currency fund transfer and securities settlement via SWIFT by the BNM's deadline of January 2015.
"Many central banks are utilising the SWIFT network for secure messaging connectivity and international standards essential to their smooth operation," says Violet Yeo, Account Director, ASEAN, SWIFT. "The SWIFT community is very pleased that Bank Negara Malaysia has availed SWIFT to the Malaysian financial community in the next generation RENTAS."
In addition to Malaysia, SWIFT is used by payment market infrastructures in eleven Asia-Pacific countries and territories, including Australia, New Zealand, the Philippines, Thailand, Sri Lanka, Singapore, Fiji, Hong Kong, Macau, Taiwan and Papua New Guinea, and in over 70 RTGS systems around the world.