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 Budget 2020, 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 eco-system.

“The merger is expected to lead to greater synergies to achieve development outcomes that would benefit all stakeholders, as well as fulfil 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 to merge EXIM Bank and SME Bank into the earlier merged entity,” said BPMB in a statement on Dec 23.

It said a Steering Committee – led by the Finance Ministry – will oversee the implementation of the restructuring plan.

The Steering Committee comprises representatives from the relevant stakeholder ministries, namely Economic Affairs, Entrepreneur Development, International Trade and Industry, and 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 are expected to be completed within six months from BNM’s approval. – Bernama

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