KUALA LUMPUR: Bank Pembangunan Malaysia Bhd (BPMB) and Danajamin Nasional Bhd have obtained Bank Negara Malaysia’s (BNM) approval to commence negotiations for the government’s proposed merger involving the country’s Development Financial Institutions (DFI).
Under the 2020 Budget, the government proposed that BPMB, Danajamin, Export-Import Bank of Malaysia Bhd (EXIM Bank) and Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) would be restructured and merged to strengthen the DFI ecosystem.
“The merger is expected to lead to greater synergies to achieve development outcomes that would benefit all stakeholders, as well as fulfill the needs of the new economy.
“The restructuring plan will be implemented in two phases - the first phase involving the merger of BPMB with Danajamin, and the second phase is to merge EXIM Bank and SME Bank into the earlier merged entity,” said BPMB in a statement today.
It said a Steering Committee -- led by the Finance Ministry -- will oversee the overall smooth implementation of the restructuring plan.
The Steering Committee comprises representatives from the relevant stakeholder ministries, namely the Economic Affairs Ministry , Entrepreneur Development Ministry, International Trade and Industry Ministry, Credit Guarantee Corporation, BNM and the four DFIs.
“A Working Committee has also been established to support the Steering Committee in driving the implementation of the key integration aspects of the merger as well as provide updates to the public as and when appropriate with regards to its progress,” it said.
Negotiations between BPMB and Danajamin is expected to be completed within six months from BNM’s approval. - Bernama