The global economic centre is shifting to the East, and in this new world order, Southeast Asia is set to play a major role in economical, financial, technological, educational and knowledge development. This is the crux of the message by the Governor of Magyar Nemzeti Bank (MNB – The National Bank of Hungary) Dr György Matolcsy in an exclusive interview with International Business Review.
Appointed to his post in 2013 by President Victor Orban, having previously served as the country’s Minister of National Economy, Dr Matolcsy has been instrumental in driving cooperation between the MNB and other central banks, particularly those in Asia, on matters such as monetary policy, sustainable development, digitalisation, geopolitics, education, and culture.
“The development of green finance, green taxonomy and green strategies can be a great starting point for future cooperation with Southeast Asian central banks. This is the same for digitalisation, such as the digitalisation of central bank activities and the financial system, as well as CBDCs.”
This, he said, is reflective of the Hungarian government’s Eastern Opening policy, which has seen Hungary pivot away from the West towards the East. This, he postulated, is a logical and natural step, given the rise in Asia’s prominence in the global economy, with the region expected to make up more than 50 percent of global GDP by 2030.
Beyond economic indicators, Dr Matolcsy was also quick to point out the positioning of several Asian countries on a number of global rankings including the World Intellectual Property Organization’s (WIPO) Global Innovation Index 2023.
“Singapore is the 5th most innovative country in the world, the Republic of Korea is the 10th, and China is the 12th in the era of digitalisation and the fourth industrial revolution. By systematically constructing regional ecosystems for research and development, these countries attained this achievement in just a few decades,” he stated.
As such, Dr Matolcsy is focused on strengthening bilateral relations between the MNB and Southeast Asian central banks, particularly in the areas of risk management, digitalisation, payment systems, FinTech innovation, greening the financial sector, CBDCs, and education.
He highlighted, for instance, that the MNB has been studying the progress of the Asia School of Business, which is Bank Negara Malaysia’s (BNM) education initiative. In addition, he spoke of Project Dunbar, where MNB is working with BNM and the Monetary Authority of Singapore as well as the central banks of Australia, South Africa and the Bank of International Settlements on a united platform to enable cross-border payments using central bank digital currencies (CBDCs).
The MNB Governor noted, “Hungary must prioritise the expansion and deepening of its relations with Southeast Asian countries, as the economic growth and investment potential characteristic of the Southeast Asian region represent a serious opportunity not only for the region, but also for the European Union, of which ASEAN is one of its most important partners.”
And Hungary, thanks to Eastern Opening policy, is set to be the conduit between the two regions.
