KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Singapore’s financial powerhouses—DBS, UOB, and OCBC—are accelerating their expansion into RMB cross-border settlements, positioning themselves as regional leaders in Asia’s rising RMB payment ecosystem, driven by China’s Belt and Road Initiative (BRI) and the global momentum behind RMB internationalization.
RMB Payment Volumes Hit Record Highs
In 2024, China's Cross-Border Interbank Payment System (CIPS) handled over RMB 175 trillion, marking a 42.6% YoY increase, underscoring the growing relevance of RMB as a global settlement currency.
This surge aligns with a broader trend of de-dollarization, further incentivizing regional financial institutions to deepen RMB infrastructure capabilities and tap into the expanding RMB payment corridor.
Singapore’s Big Three: Strategic Integrations with CIPS
DBS Leads the Charge in RMB Clearing
First Singaporean bank to become a direct CIPS participant.
Achieved 30% growth in RMB transactions (2023).
Leveraged its strong corporate banking base in ASEAN-China trade to cut settlement times and reduce costs, improving cross-border liquidity for clients.
UOB Enables Real-Time Settlement Connectivity
Attained direct CIPS access by mid-2025 via its China subsidiary.
Real-time RMB settlements enabled through integrated data infrastructure.
Delivered nearly 20% cost savings for high-frequency RMB transactions—a competitive edge in regional trade finance.
OCBC Scales Fast Through China Subsidiary
Joined CIPS in late 2024, with full integration in early 2025.
Reported a 45% YoY surge in RMB settlements.
Positioned to support multi-sector clients engaged in BRI-linked trade, enhancing treasury and FX capabilities.
Together, the three banks now handle ~40% of Singapore’s daily CIPS volume, averaging over RMB 750 billionacross 23,000 daily transactions as of July 2025.
Why Demand for RMB Clearing is Accelerating
T+0 real-time settlements lower corporate remittance costs.
Policy tailwinds (e.g., China’s digital RMB push and currency swaps) incentivize growth.
New revenue channels emerge across FX derivatives, cash management, and trade finance.
Enhanced client stickiness through improved treasury solutions for cross-border enterprises.
Strategic Outlook: CIPS as a Growth Engine
Singapore’s banks are set to deepen integration with CIPS through:
AI-driven payment analytics and blockchain-powered settlements.
Digital RMB adoption to support real-time treasury management.
Custom RMB-denominated trade finance products for ASEAN-China firms.
Strengthened cooperation with Chinese regulators and financial institutions.
Analysts forecast >20% annual growth in RMB clearing volumes for Singapore banks over the next few years, driven by policy support, Belt and Road capital flows, and enterprise demand for more cost-efficient FX solutions.
Investment Insight
For investors and corporates, the expanding role of Singapore banks in the CIPS RMB settlement ecosystem offers both a strategic moat and a revenue multiplier. As Southeast Asia cements its position in China’s economic orbit, DBS, UOB, and OCBC stand to benefit from rising demand for RMB financial services, making this a structural trend worth watching.
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