KUALA LUMPUR: Bank Pembangunan Malaysia Bhd and Danajamin Nasional Bhd have received approval from Bank Negara Malaysia to commence negotiations under the first phase of the government’s proposed merger involving the country’s Development Financial Institutions (DFIs).
Bank Pembangunan said the restructuring plan will be implemented in two phases - the first phase involving the merger of Bank Pembangunan with Danajamin, and the second phase to merge Export-Import Bank of Malaysia Bhd (Exim Bank) and Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) into the earlier merged entity.
Negotiations between Bank Pembangunan and Danajamin were expected to be completed within six months from Bank Negara’s approval to commence negotiations in December 2019, it added.
Under 2020 Budget, the government proposed that Bank Pembangunan, Danajamin, Exim Bank and 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 fulfill the needs of the new economy," Bank Pembangunan said.
The instutition said a steering committee, led by the Finance Ministry will oversee the overall smooth implementation of the restructuring plan.
"The steering committee consists of representatives from the relevant stakeholder ministries namely the Economic Affairs Ministry, Entrepreneur Development Ministry, International Trade and Industry Ministry, Credit Guarantee Corp, Bank Negara and the four DFIs," it said.
Bank Pembangunan said a working committee had also been established to support the steering committee in driving the implementation of the key integration aspects of the merger.
The working committee would also provide updates to the public as and when appropriate with regards to the progress of the merger, it added.