Under the proposed structure, Danajamin will become a wholly-owned subsidiary of BPMB.
BPMB said it is currently conducting the necessary due diligence process, with the target operational effective date for phase one completion by the fourth quarter of this year, subject to shareholder and regulatory approvals.
“Both BPMB and Danajamin are reviewing our business strategies to expand our scope of business in providing a wider range of products and services, and a greater value proposition to customers,” it said in a statement today.
In December 2019, Bank Negara Malaysia gave its approval to BPMB and Danajamin to commence negotiations for the first phase of the government’s proposed plan to merge the country’s DFIs in an effort to strengthen the DFI ecosystem.
This followed a proposal by the government in Budget 2020 that BPMB, Danajamin, Export-Import Bank of Malaysia Bhd (EXIM Bank) and SME Bank be restructured and merged to strengthen the DFI ecosystem.
The restructuring plan will be implemented in two phases – first, BPMB will be merged with Danajamin, then EXIM Bank and SME Bank will be merged into the earlier merged entity. – March 6, 2020, Bernama
