BEIJING, Nov 10 – Prime Minister Datuk Seri Najib Tun Razak today expressed confidence that the memorandum of understanding (MoU) signed between the People’s Bank of China and Bank Negara Malaysia would further strengthen financial and economic relations between the two countries. The yuan clearing bank would be a catalyst to support the rapid growth in bilateral trade, investment and financial flows between Malaysia and China, he said.
“Today’s event is another affirmation that we will continue to pursue this goal for mutual benefits to both countries. “As we are aware, the establishment of the yuan clearing bank resulted from the discussion between President Xi Jinping and myself last May,” said Najib, who is also finance minister in a statement released today.
Going forward, the designated yuan clearing bank would become a strategic component of Malaysia’s financial system and infrastructure, enabling a significant pooling of yuan liquidity to meet the financing needs of Malaysian financial institutions and businesses. “I am confident that Malaysian financial institutions will be able to utilise this advantage to pursue greater use of yuan to facilitate greater regional trade and investment in their extensive regional network in Asean, thus strengthening Malaysia’s position as a gateway for yuan flows into the Asean region,” said the prime minister.
Najib added that China would soon announce the name of the clearing bank. Najib is in China to attend the two-day 22nd Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Meeting (AELM) which began today. The AELM called “Shaping the future through Asia-Pacific partnership” will be chaired by President Xi Jinping of China. Earlier, Najib held separate bilateral meetings with Xi, chief executive of the Hong Kong Special Administrative Region, C.Y. Leung and Li. Bank Negara is expected to issue a statement today on the yuan clearing bank.