Rebecca PY MALAYSIA, 17 SEPTEMBER 2026 – Malaysia and Japan have officially reinforced their bilateral economic ties through a pair of milestone financial agreements inked between central authorities. Under a newly established Memorandum of Cooperation signed by Bank Negara Malaysia and the Ministry of Finance of Japan, both nations agreed to encourage the use of the Ringgit and the Yen in eligible cross-border investments and commercial operations. This local currency framework will be supported by ongoing policy discussions and regular information exchanges between regulatory agencies in both countries.
In tandem with the trade settlement agreement, Bank Negara Malaysia and the Bank of Japan, serving on behalf of Japan’s Ministry of Finance, signed the Third Bilateral Swap Arrangement effective 18 September 2026. The financial safety net allows for currency exchanges reaching up to USD 6 billion, equivalent to approximately RM24.6 billion. Together, these dual initiatives mark a significant step forward in stabilizing foreign exchange volatility for businesses while safeguarding broader regional financial systems.