The cashless tide

Features

February 6, 2025

The digital payment landscape in ASEAN is evolving rapidly, driven by increasing financial inclusion, e-commerce expansion, and the growing adoption of digital financial services (DFS).

Digital payments already constitute over 50 per cent of transactions across the region, with projections indicating a surge to USD416.60 billion by 2028.

Despite this momentum, regulatory fragmentation, interoperability issues, and security risks continue to challenge seamless integration.

DIGITAL PAYMENTS: A CATALYST FOR ECONOMIC GROWTH

According to a policy brief by the Economic Research Institute for ASEAN and East Asia (ERIA), authored by Manager for Digital Innovation and Sustainable Economy at ERIA, Mahirah Mahusin and Research Associate at ERIA, Hilmy Prilliadi, digital payments have played a transformative role in ASEAN’s financial ecosystem.

Citing research, in 2021, they accounted for 82 per cent of the region’s DFS revenue.

And by 2023, digital payments had become the dominant mode of transaction, accounting over half of transactions, reinforcing financial inclusion and supporting micro, small, and medium-sized enterprises (MSMEs).

Notably, e-wallets have significantly bolstered e-commerce, with Vietnam and Indonesia reporting 25 per cent and 39 per cent of transaction values via e-wallets, respectively.

In line with this progress, ASEAN has made considerable progress in fostering cross-border digital payments.

The Committee on Payment and Settlement Systems has spearheaded initiatives such as the ASEAN Payments Policy Framework for Cross-border Real-Time Retail Payments, finalised in 2019.

More recently, eight ASEAN member states (AMS) have signed a memorandum of understanding under the Regional Payments Connectivity initiative, facilitating cross-border QR code payments in countries including Cambodia, Indonesia, Malaysia and Thailand.

Additionally, integration efforts are extending to Hong Kong, India, and Japan, with potential region-wide expansion.

Parallel to these developments, ASEAN has introduced a local currency transaction framework to reduce reliance on the US dollar, addressing challenges such as thin liquidity, costly hedging tools and regulatory inconsistencies.

However, full-scale implementation requires further infrastructure development, regulatory harmonisation, and technological innovation.

ADDRESSING KEY CHALLENGES

Despite these advancements, ASEAN’s digital payment ecosystem faces significant hurdles that must be addressed to ensure seamless regional integration.

INTEROPERABILITY CONSTRAINTS

While nine AMS have adopted ISO 20022 for retail payment systems and eight have established national QR payment channels, some remain in the early stages of integration.

The lack of uniform adoption hinders the ASEAN Interoperable QR Code Framework’s full potential.

The expansion of interoperability beyond person-to-merchant transactions to merchant-to-merchant interactions requires standardised protocols and collaboration among providers to enable frictionless cross-border transactions.

SECURITY AND DATA PROTECTION RISKS

Ensuring digital payment security remains a critical challenge. As highlighted in the ASEAN Payments Policy Framework, digital transactions expose consumers to risks such as unauthorised data disclosure and fraud.

To mitigate these threats, DFS providers must prioritise advanced encryption, multifactor authentication and consumer education. Additionally, adherence to data privacy laws, transparency in service terms and efficient dispute resolution mechanisms are essential.

REGULATORY FRAGMENTATION

Diverse regulations across AMS present another obstacle to cohesive digital payment adoption.

Variations in foreign ownership limits, e-wallet spending caps and minimum capital requirements create inconsistencies.

Furthermore, FinTech-driven big data usage has outpaced regulatory developments, necessitating clearer guidelines to balance innovation with consumer protection.

REGULATORY MODELS: STRIKING A BALANCE

Globally, digital payment regulations vary between rules-based and principles-based models. The rules-based approach, as seen in India, provides clear compliance guidelines but may lack flexibility.

Meanwhile, the European Union and Singapore employ a principles-based model that encourages adaptability but can lead to regulatory inconsistencies.

ASEAN’s diverse economic structures and legal systems suggest a hybrid model – combining clear regulatory standards with adaptable implementation – would be most effective. Such an approach would harmonise high-level principles with local regulations, ensuring financial stability while fostering innovation.

POLICY RECOMMENDATIONS FOR SUSTAINABLE GROWTH

To address these challenges and enhance ASEAN’s digital payment ecosystem, ERIA’s policy brief outlines several key recommendations:

Enhancing Regulatory Harmonisation

Ensure that commitments under the ASEAN Digital Economy Framework Agreement (DEFA) align with AMS regulations and promote interoperability.

Establish a cross-sectoral coordination platform for finance, trade, and competition authorities to drive regional digital connectivity efforts.

Strengthening Technical Infrastructure

Develop a unified technical framework for payment interoperability, including standardised QR codes and real-time settlement systems.

Encourage the use of application programming interfaces (APIs) to foster seamless integration and innovation in digital payments.

Improving Consumer Protection and Security

Implement unified security protocols, including advanced encryption technologies, regular security audits, and robust incident response mechanisms.

Ensure transparent digital payment regulations, outlining licensing requirements and technical standards for service providers.

Introduce automated dispute resolution systems, such as chatbots, for small-value transactions to enhance consumer confidence.

By adopting these measures, ASEAN can establish a more integrated, secure, and efficient digital payment ecosystem.

As the authors noted, “A well-regulated and harmonised digital payment landscape will be instrumental in driving ASEAN’s economic growth, enhancing financial inclusion, and supporting digital transformation.” – Wardi Wasil

Programme focuses on workplace harmony

National

February 6, 2025

The Mosque Affairs Department through the Youth Affairs Division in collaboration with the Sufri Bolkiah Mosque Takmir Committee and Nationwide Mosque Youth, conducted a programme dubbed, ‘Bergema Dalam Kabus – Jiwa Tenang, Siuk Bekeraja’.

The programme, to adapt to a calmer reaction when facing problems at work and learn to accept decisions and instructions positively, took place at the Sufri Bolkiah Mosque in Kampong Perpindahan Berakas and was attended by 30 youth comprising employees in the government sector.

The programme, serves to find a solution through discussions among colleagues who are in disagreement or have problems, aimed at finding out the essence and causes of problems at work and how to seek assistance.

It also shared the limits of interaction between men and women in the Islamic view and how to dress appropriately for women at work. – Lyna Mohamad

Photos show the programme in progress. PHOTO: MOSQUE AFFAIRS DEPARTMENT

Thursday, February 6, 2025

BB Daily Digital

February 6, 2025

Minister visits Labi Coffee Plantation

Business

February 5, 2025

Minister of Primary Resources and Tourism Dato Seri Setia Dr Haji Abdul Manaf bin Haji Metussin led a goodwill visit on February 1 to the Syarikat Pertanian Tropikal Utama’s coffee plantation in Kampong Rampayoh, Mukim Labi.

Accompanying the minister were permanent secretaries and officers from the Ministry of Primary Resources and Tourism, who were all welcomed by the plantation owner Yong Khian Fook.

Minister of Primary Resources and Tourism Dato Seri Setia Dr Haji Abdul Manaf bin Haji Metussin with plantation owner Yong Khian Fook during the visit. PHOTO: Labi Coffee Plantation

The visit was aimed at observing the growth of the coffee plantation as well as discussion on the development and production of the plantation made over the years. – Daniel Lim

Six companies fined for urban planning violations

National

February 5, 2025

Six companies have been issued compound fines for failing to comply with warnings from authorities and violating the Urban and Regional Planning Regulations (Composition of Offences), 2018. The offences include placing, using, obstructing, and displaying items in parking spaces, pedestrian walkways, and landscaped areas, creating potential hazards due to slippery and unclean conditions.

Obstructing pedestrian walkways is an offence under the Urban and Regional Planning Regulations. PHOTO: Department of Urban and Regional Planning

The violations have also led to a reduction in available parking spaces, disruptions to pedestrian movement, and damage to designated landscape areas that should be maintained for cleanliness and aesthetics. Such actions negatively impact the overall appearance and aesthetic value of business areas in the country.

One of the businesses found in violation. PHOTO: Department of Urban and Regional Planning

These offences were identified during a two-day Operation Kemas (OPKEMAS) conducted by the Planning Authority under the Department of Urban and Regional Planning in Mukim Sengkurong on February 4 and 5.

The maximum fine for each offence is BND500, and the companies have been given seven days from the issuance date of the compound to settle their penalties.

The Planning Authority, under the Department of Urban and Regional Planning at the Ministry of Development, reminds business owners, property owners, and entrepreneurs to adhere to urban planning laws and take collective responsibility for maintaining the cleanliness, beauty, and safety of commercial areas. – Fadley Faisal

Sultan leaves for China state visit

National

February 5, 2025

His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, on Wednesday left for Beijing, People’s Republic of China for a State Visit on 6th February 2025, as well as to attend the 9th Asian Winter Games that will be held on 7th February 2025 in Harbin, Heilongjiang Province, People’s Republic of China

Accompanying His Majesty was His Royal Highness Prince ‘Abdul Mateen.

Prior to leaving Istana Nurul Iman, Doa Selamat was recited by the State Mufti Pehin Datu Seri Maharaja Dato Paduka Seri Setia Dr Ustaz Haji Awang Abdul Aziz bin Juned.

His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam prior to leaving Istana Nurul Iman. Also in the picture is His Royal Highness Prince Haji Al-Muhtadee Billah, the Crown Prince and Senior Minister at the Prime Minister’s Office; His Royal Highness Prince ‘Abdul Malik and His Royal Highness Prince ‘Abdul Mateen. PHOTO: INFOFOTO

Present at His Majesty the Sultan’s Flight Hangar in Rimba to bid farewell to His Majesty were members of the Royal Family.

Also present at His Majesty the Sultan’s Flight Hangar to bid farewell to His Majesty were Yang Amat Mulia Pengiran-pengiran Cheteria; Cabinet Ministers; Members of the Privy Council; Deputy Ministers; the Commander of the Royal Brunei Armed Forces; and the Acting Commissioner of Police of the Royal Brunei Police Force.

The colors we see make a difference in the food we eat

Lifestyle

February 5, 2025

NEW YORK (AP) — You know you’ve said it. We all have. “Mmm, that looks so delicious — I want to try some!” That’s because when it comes to what we eat, it’s not just a matter of taste.

(AP) – What foods and drinks look like — the colors we see before the first morsels or sips hit our tastebuds — have mattered to people for millennia. And nowhere has that been more blatant than the American food palate, where the visual spectrum we choose from includes not only the primary colors but artificial ones that nature couldn’t even dream up.

For well over a century, food manufacturers in the United States have used synthetic dyes in their products as part of their production and marketing efforts. Often, it’s been in hopes of making a mass-produced food look as fresh and natural as possible, reminiscent of the raw ingredients used in its production. In other cases, it’s been about making an item look interesting or distinctive from competitors, like candies or desserts in an electric blue or neon pink. Think “blue raspberry Slurpee” or “Flamin’ Hot Cheetos.”

It hasn’t been without controversy. Over the decades, there have been pushback and government regulation over just HOW food and drink have been colored, most recently with the decision last month from the federal Food and Drug Administration to ban red dye No. 3 from foods and oral-ingested drugs because of concerns over a possible cancer risk.

But no one’s calling for food NOT to be colorful.

That’s because there’s no escaping the importance of what we see when it comes to what we eat, says Devina Wadhera, faculty associate at the College of Integrative Sciences and Arts of Arizona State University.

“Your first sensory contact, if your eyes are open, is going to be sight,” she says. “That’s going to be the first judgment we’re going to make.”

Visual appeal is pivotal

The food manufacturers of the late 19th century knew they had to get the visual appeal right. It was part of their marketing, as a shorthand to encourage brand recognition, to make consumers feel comfortable about quality and overcome worries (or realities) about spoilage as food production became industrialised, says Ai Hisano, author of “Visualising Taste: How Business Changed the Look of What You Eat.”

Synthetic dyes helped overcome problems like foods losing color in the production process and helped make foods look more “natural,” she says. Then, over time, dyes were deployed to make foods look “fun” and appealing to audiences like young children. (That doesn’t mean manufacturers didn’t sometimes use colorants that could even be deadly — hence the reason there’s regulation.)

She pointed to the mid-20th century example of cake mixes, which reduced the amount of effort required to bake a cake at home because most of the ingredients were already included. Food companies began promoting colorful icing for the cakes as a way women baking at home “could kind of present their personality even though they are making a pre-mixed cake,” Hisano says.

We become conditioned to coloring

The connections we make between colors and foods are learned, Wadhera says.

“Throughout our lives, we make associations which mean things. Cake is associated with birthdays. Ice cream is associated with parties and good times, so everything is associative learning. Color is one of those things that we have this tendency to learn about different flavor pairings.”

She gave the example of the spate of products like chips and other snacks that are marketed as having an extra kick. Often, “they’re super red because (companies are) trying to say, ‘Hey, this is going to be spicy’ because they’re trying to get to this sensation or perception that this is going to be really spicy — buy it.”

The connections that we make between color and taste can also change according to the context, says Charles Spence, professor of experimental psychology at the University of Oxford. A blue liquid in a plastic cup in a bathroom? Could be minty mouthwash. The exact same color liquid, in a bar, held in a rocks glass? Could be bitter gin. Different cultures around the world also have different color associations, he says, although it’s fairly constant across geographies that the more vivid a color is, the more intense people assume the flavor will be.

It can even extend past the food itself to the colors involved in its presentation, Wadhera says, pointing to research showing people eating different amounts or preferring certain foods linked to the colors of the dishes used to serve them. And much of the time, she says, people aren’t necessarily aware they’re doing it.

“There’s a lot of things with color that you can manipulate and affect judgments,” she says. “You don’t think of it, though. … We make automatic judgments on the food and we don’t even realise it.”

Bank celebrates CNY with community and education support

National

February 5, 2025

Baiduri Bank Group marked Chinese New Year with a grand appreciation event at The Empire Brunei on Wednesday, gathering over 1,000 distinguished guests, business partners, and stakeholders for an afternoon of gratitude and reflection on the Group’s progress and contributions to the community.

A key highlight of the celebration was the presentation of school fee donations to underprivileged students from 13 private schools across the country.

Speaking at the event, Baiduri Bank Chief Executive Officer Ti Eng Hui emphasised the Group’s commitment to education.

Baiduri Bank Chief Executive Officer Ti Eng Hui with distinguished guests during the tossing of the Yee Sang. PHOTOS: MUIZ MATDANI

“At Baiduri Bank, we recognise the importance of education in shaping brighter futures. By supporting underprivileged students with their school fees, we’re helping to ease the financial challenges that can stand in the way of their education. Our aim is to give these students the opportunity to excel and contribute meaningfully to their communities, fostering a more inclusive and empowered society for the future,” he said.

The presentation of school fee donations to underprivileged students from 13 private schools across the country, received by leaders of respective schools.

The school fee donation initiative, which began in the early 2000s, initially focused on assisting students from Chinese schools during Chinese New Year celebrations. Over time, the programme expanded to include more private schools, benefiting hundreds of students and reinforcing Baiduri Bank Group’s dedication to education and social responsibility.

Ti Eng Hui personally handed over the donations to representatives from schools across Brunei’s four districts: Brunei-Muara: Chung Hwa Middle School, St George’s School, and St Andrew’s School; Tutong: Chung Hwa School Tutong and Chung Hwa School Kiudang; Belait: Chung Hwa School Labi, Chung Hua Middle School, Chung Lian School, Chung Ching Middle School, St Angela’s School, St John’s School, and St Margaret’s School; Temburong: Pai Yuek School.

Beyond education, Baiduri Bank Group continues to strengthen its corporate social responsibility (CSR) efforts, aligning with Brunei Vision 2035’s goal of fostering a dynamic and sustainable economy. The Group’s CSR initiatives span social, economic, and environmental pillars, with flagship programmes such as the Baiduri Enterprise Hub, Baiduri Masters, Let’s Give Back This Ramadhan, and Baiduri Lokal Market. – Fadley Faisal

Regulation key to curbing student vaping: M’sian industry leader

Southeast Asia

February 5, 2025

PETALING JAYA (ANN/THE STAR) – Regulating the vape industry is essential to addressing the rise of vaping among schoolchildren, says Malaysian Organisation of Vape Entities president, Samsul Kamal Ariffin.

He noted that since nicotine was exempted as a controlled substance under the Poisons Act in March 2023, vape product content has become unregulated.

“Nicotine use has now become a social issue rather than a legal one. While the industry is willing to self-regulate to sustain its businesses, proper regulation must come from the Health Ministry (MOH) and the Domestic Trade and Cost of Living Ministry, which already have enforcement units in place,” he said.

Samsul Kamal stressed that enforcement is crucial. “Regardless of laws, regulations, or guidelines, without proper enforcement, these measures will be ineffective.”

His remarks follow a report revealing that nearly 20,000 students were caught vaping in schools last year. Citing figures from the Students Discipline System, Deputy Education Minister Wong Kah Woh stated that 19,450 cases were recorded in 2023.

To curb student vaping, Samsul Kamal suggested banning vape shops near schools and implementing clear guidelines, including warning labels on vape products.

Call for stricter regulations

Federation of Malaysian Consumers Associations’ Tobacco Control/SmokeFreeMY Initiative coordinator, Muhammad Sha’ani Abdullah, urged MOH to strengthen regulations on the marketing and sale of e-cigarettes, particularly those with appealing packaging and flavors targeting youth.

He also called for the Malaysian Communications and Multimedia Commission to introduce licensing mechanisms to prohibit online vape sales.

“Adults must set a good example by demonstrating positive values, including refraining from smoking in public, especially around children,” he said, expressing serious concern over the increasing cases of student vaping.

While acknowledging the Education Ministry’s efforts in implementing disciplinary actions and awareness campaigns, Muhammad Sha’ani emphasized the need for enhanced preventive strategies involving parents, educators, local authorities, and health regulators.

Calls for vape ban

Malaysian Medical Association’s Action on Smoking and Health committee adviser, Prof Datuk Dr Lekhraj Rampal, urged the government to reconsider banning vape products altogether.

He recalled that more than a decade ago, there was a recommendation to MOH to ban vaping.

“At that time, we were still struggling with tobacco-related issues. Vaping should have been banned from the outset,” he said, adding that a technical committee was formed to assess the issue.

“I was an adviser and recommended a ban, but the Cabinet decided to regulate instead. I warned that vaping would lead to bigger problems, including potential drug use.”

Dr Rampal pointed out that tobacco use contributes to 20,000 deaths annually in Malaysia due to cardiovascular disease and cancer. To combat non-communicable diseases, he said, efforts should focus on reducing tobacco use rather than introducing additional risks through vaping.

Industry’s stance

Meanwhile, Malaysia Retail Electronic Cigarette Association president, Datuk Adzwan Manas, stated that the industry supports restricting vape products to adults above 18 years old.

“Vape products should only be used by adults, particularly cigarette smokers looking to quit. Many countries have proven that vaping is less harmful than cigarettes and can help smokers transition away from tobacco,” he said.

Asian markets stutter as traders weigh China-US trade flare-up

Business

February 5, 2025

HONG KONG (AFP) – Asian markets stumbled Wednesday and gold hit a new record as investors kept tabs on China and the United States after they exchanged tariffs, sparking fears of another debilitating trade war between the economic superpowers.

Shanghai, which reopened after a week-long break, and Hong Kong were among the main losers as e-commerce firms took a hit from news that the US Postal Service was suspending inbound parcels from China and Hong Kong.

The tepid performance came despite a positive lead from Wall Street, where there was a sigh of relief that US President Donald Trump had reached a deal to delay 25 per cent duties on imports from Canada and Mexico.

Disappointing earnings from Google-parent Alphabet and Advanced Micro Devices added to the unease over the tech sector, which has already been roiled by the unveiling of a new chatbot by Chinese startup DeepSeek.

The waters of Victoria Harbour reflect the lights of the Hong Kong skyline on February 4, 2025. PHOTO: AFP

All eyes were on Washington and Beijing after they renewed their trade spat, though analysts said China’s apparently more measured approach provided some hope that a full-blown crisis could be avoided.

“Regarding China’s counter measures, we think that the tariffs are less than what we had expected in our view. The move is largely symbolic given that only about 12 per cent of total imports from the US would be subject to tariffs,” said Kai Wang, Asia equity market strategist at Morningstar.

“A key takeaway from this development, at least for now, is that fundamentally there is less risk implied than expected before.

“However, escalation of the trade war remains a risk given Trump’s history of unpredictable behaviour. Therefore, the volatility risk remains on the table for the next four years at least,” Wang added.

Economists at HSBC Global Research added that China’s “moves so far are more measured compared with the universal 10 percent tariff imposed by the US, suggesting a likely different playbook than a tit-for-tat strategy, though we acknowledge the risk of escalation has increased”.

Hong Kong fell 1.2 per cent, with e-commerce giant JD.com sinking more than four percent and rival Alibaba losing more than one percent on news of the US Postal Service suspension.

Trump’s tariff announcement against China included the removal of an allowance — used by China’s e-commerce firms — that exempted small packages worth less than USD800 from duties.

The suspension does not involve letters and flat mail.

There were also losses in Tokyo, Singapore, Wellington and Jakarta, though Sydney, Seoul, Taipei and Manila rose.

Gold hit a fresh peak of USD2,853.82 as investors rushed into the safe-haven metal.

Tech firms were again under pressure after Alphabet sank 7.5 per cent in after-hours trade in New York owing to disappointment at its lower-than-expected revenue growth and its ambitious 2025 capital spending forecast.

Advanced Micro Devices also sank in post-close business.

The tech sector has been feeling some pain since DeepSeek’s arrival on the scene with its chatbot, which apparently was developed at a fraction of the cost of similar tools made by US firms, stoking concerns about the eye-watering investments made in AI in recent years.

On currency markets, the yen strengthened against the dollar following data showing nominal wages in Japan rose far more than expected last month and at the fastest pace since 1997.

That firmed expectations the country’s central bank would continue to hike interest rates this year.

Borneo Bulletin OnlineThe Independent Newspaper in Brunei Darussalam, Sabah and Sarawak

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