KUALA LUMPUR (Oct 3): Malayan Banking Bhd (KL:MAYBANK) said it has signed a memorandum of understanding with China's Bank of Hangzhou to work together on enhancing cross-border business and advancing digital innovation.

The collaboration between the two banks coincides with the upcoming 50th anniversary of diplomatic relations between China and Malaysia, said Maybank in a statement on Thursday.

"This partnership aims to facilitate services such as cross-border financing, interbank cooperation within China, and the clearing of Southeast Asian currencies, while also connecting Chinese enterprises to a broader business ecosystem in the region," said the statement.

Both banks are also exploring opportunities in digital banking, particularly in areas such as data governance, analytics and fintech innovation.

Maybank said the partnership will involve joint product development, knowledge-sharing initiatives, and talent development programmes to enhance customer offerings in both markets.

Maybank's group president and chief executive officer Datuk Khairussaleh Ramli said the collaboration would create a lot of opportunities for both banks by leveraging their strengths of extensive footprint and experience in Asean.

“We aim to provide comprehensive financial services as a one stop centre to support the Chinese enterprises expanding into Southeast Asia,” Khairussaleh said.  

Bank of Hangzhou president Yu Limining said the partnership highlighted the “strong ties between the nations” and the bank’s commitment to the Belt and Road Initiative.

The collaboration builds on the recent signing of a letter of intent between Kuala Lumpur City Hall and the Hangzhou Municipal People's Government under the “Smartup City Connect” initiative.

Shares in Maybank closed eight sen or 0.76% higher at RM10.54 on Thursday, giving the bank a market capitalisation of RM127.19 billion. Year-to-date, the stock has risen 18.16%.