KUALA LUMPUR (Dec 23): Bank Pembangunan Malaysia Bhd (BPMB) and Danajamin Nasional Bhd have received Bank Negara Malaysia's (BNM) approval to commence negotiations under the first phase of the government's proposed merger involving the country's development financial institutions (DFIs).
BPMB said in a statement today negotiations between BPMB and Danajamin are expected to be completed within six months from BNM's approval in Dec 2019.
"The government proposed in Budget 2020 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," BPMB said.
According to BPMB, a Ministry of Finance-led steering committee will oversee implementation of the restructuring plan.
BPMB said the steering committee comprises representatives from the Ministry of Economic Affairs, Ministry of Entrepreneur Development, Ministry of International Trade and Industry besides representatives from Credit Guarantee Corp, 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. The working committee will also provide updates to the public as and when appropriate with regards to the progress of the merger," said BPMB, which has a combined asset value of RM24.7 billion as at Dec 31, 2018.