KUALA LUMPUR, Oct 21 — The collaboration between Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) and PT MNC Kapital Indonesia (MNC Kapital) can help drive economic development in the region through the provision of Shariah-compliant financing facilities as well as inclusive banking products and services to Indonesian migrant workers (PMI) who will work in Malaysia.

Minister of Entrepreneurship and Cooperative Development Datuk Ewon Benedick said the cooperation formed through the signing of the memorandum of understanding (MoU) between the two parties could also boost bilateral relations between Malaysia and Indonesia.

"This collaboration is indirectly able to have a positive impact including being able to help ensure PMI’s legal entry into Malaysia in accordance with the laws of both countries and the security and protection of PMI’s rights in terms of banking services while in Malaysia.

"In addition, the increase in PMI supply, especially in the construction sector, is expected to help Malaysia’s economic growth and further strengthen bilateral relations between the two countries,” he said in a statement today.

The MoU, which was signed in Jakarta, was signed by the chief executive officer of Bank Rakyat Datuk Mohammad Hanis Osman and the president director of MNC Kapital Yudi Hamka.

Ewon said the strategic collaboration between the two countries will facilitate the movement of human capital and support the expansion of Malaysian companies in regional markets.

In addition, the move is also seen to be in line with the Prime Minister’s call at the recent 43rd Asean Summit for economic integration between regional countries to be further intensified.

"A greater strategic agreement needs to be implemented to develop market integration and facilitate the movement of goods, capital, highly skilled workforce as well as technology sharing with Asean countries which I see is in line with the cooperation MoU signed between Bank Rakyat and MNC Kapital,” he said. — Bernama