Bank Pembangunan Malaysia completes acquisition of EXIM Bank, SME Bank
KUALA LUMPUR, May 1 — Bank Pembangunan Malaysia Bhd (BPMB) today announced the successful acquisition of shares in Export-Import Bank of Malaysia Bhd (EXIM Bank) and Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) from Minister of Finance (Incorporated).
In a statement today, BPMB said the transaction was completed based on the net tangible assets of EXIM Bank and SME Bank as of December 31, 2023.
Hence, it said BPMB group, now with EXIM Bank and SME Bank as its subsidiaries, forms a unified entity to better deliver impact capital through a developmental financing ecosystem, in alignment with key national policies — the Malaysia Madani Economic Framework, the New Industrial Master Plan, the National Energy Transition Roadmap, the 12th Malaysia Plan, and the Bumiputera Economic Transformation Plan 2035.
'Backed by the existing combined workforce of over 2,000, BPMB group enhances its capacity to deliver greater impact at scale.
'The group remains committed to maintaining its full workforce and enabling meaningful roles, recognising human capital as central to national development efforts,' the bank said.
Following the completion of the acquisition, BPMP said the three banks are better positioned to expand and strengthen their existing mandates to bridge the country's developmental funding gap.
It said key pillars in addressing this gap include, among others, support for bumiputera entrepreneurs, financing for SMEs, fostering inbound and outbound transactions, and advocating sustainability for growth.
Collectively, it said that for this year, the group has an allocation of RM8.3 billion to be deployed for national development through its combined strategic programmes.
'This acquisition is expected to generate revenue and cost synergies over time as the three institutions increasingly integrate their resources and expertise to support the growth of Malaysian businesses, both large and small,' it said.
Moving forward, BPMB group will implement a holistic integration plan that leverages the strengths and resources of each entity to support the three distinct market segments effectively.
During the presentation of Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim announced that development financial institutions would be restructured through the merger of Bank Pembangunan Malaysia, SME Bank and Exim Bank. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
13 hours ago
- Free Malaysia Today
Why squeeze high Petronas dividend amid profit slump, Hamzah asks
Bersatu deputy president Hamzah Zainudin said a looming 10% jobs cut in Petronas could have been avoided if the government had adjusted the dividend amount. PETALING JAYA : Opposition leader Hamzah Zainudin has questioned the government's move to collect RM32 billion in dividends from Petronas, despite the company reporting a sharp decline in profits this year. Hamzah said the dividend payout for 2025 matches that of the previous year, even though Petronas recorded a 32% drop in profits in 2024, after a 21% decline in 2023. He said maintaining such a high payout raises questions about the government's fiscal priorities, especially as more than 5,000 Petronas employees (about 10% of its workforce) are expected to lose their jobs in a restructuring exercise. 'The government must clearly explain the rationale behind maintaining the RM32 billion dividend without taking into account Petronas's profit slump and the welfare of its employees. The rakyat deserves to know, is this what the government considers fair fiscal management?' he said in a statement. Hamzah said the layoffs could have been avoided if the government had adjusted the dividend amount in line with Petronas's financial performance, rather than pushing the company to deliver the same amount. Yesterday, Petronas announced plans to reduce its workforce and freeze hiring until December 2026 as part of a restructuring aimed at cutting costs amid falling crude prices. Prime Minister Anwar Ibrahim today said most of those affected by the retrenchment are contract workers. In February, finance minister II Amir Hamzah Azizan said that Petronas's commitment to paying RM32 billion in dividends to the government remained unchanged. However, he said that the payout would depend on Petronas's financial performance and the outlook of the oil market. Separately, Bersatu vice-president Radzi Jidin reminded the government that the loss of jobs, whether of permanent staff or contract staff, would leave a big impact on them and their families. 'Humanity must always be at the heart of our actions,' Radzi said in a Facebook post.
New Straits Times
17 hours ago
- New Straits Times
Prepare for aged nation status by strengthening 'care economy'
THE "care economy" encompasses a wide range of activities involved in caring for individuals and households, including tasks like childcare, eldercare, healthcare and domestic work. These efforts — often unpaid and carried out by women — are essential to economic and social well-being, yet they are frequently undervalued and excluded from official statistics. In Malaysia, women shoulder the majority of care responsibilities. A pre-Covid-19 pandemic study by the Khazanah Research Institute found that women performed 64 per cent more unpaid care work than men and often multitasked between chores and caregiving. Despite being a long-standing part of Malaysia society, the care economy remains largely informal, with low wages and low policy recognition. This under-recognition is concerning as Malaysia approaches a demographic shift. The country became an ageing nation in 2021, with seven per cent of its population aged 65 and older. By 2030, that figure is projected to reach 10 per cent. By 2044, Malaysia will become an "aged nation" with more than 15 per cent of its population in this age group. Increasing life expectancy — 72 for men and 77 for women — will further strain the care infrastructure, mirroring challenges seen in countries like Japan and Australia. The rise in elderly populations heightens the demand for healthcare, eldercare and welfare services. Without adequate policy reforms and strategic planning, this could result in significant economic strain, particularly on families who are often the primary caregivers. For instance, the lack of affordable childcare and eldercare services forces many women to exit the workforce prematurely, limiting their economic potential and further widening gender inequality. To address these challenges, Selangor introduced the Selangor Care Economy Policy in November 2024 — the first of its kind in Malaysia — covering elderly care, childcare, disability support and the empowerment of formal and informal caregivers. Additionally, the federal government has announced plans under the 2025 Budget to introduce targeted subsidies and tax reforms aimed at reducing fiscal deficits and reallocating resources for essential services, including care economy initiatives. Such fiscal policies are expected to strengthen the support system for caregivers and improve the affordability of care services. The care economy also plays a critical role in addressing broader societal inequalities. By providing affordable and accessible care services, more women can participate in the workforce. This, in turn, contributes to the country's economic growth and reduces the financial pressures on families. Recognising and formalising the care economy would also ensure better working conditions and fair wages for care workers. In this context, the Madani policy framework, envisioned by Prime Minister Datuk Seri Anwar Ibrahim, provides a sustainable foundation for solutions. The six pillars of Madani — sustainability, prosperity, innovation, respect, trust and compassion — offer a holistic approach to tackling issues within the care economy. The compassion pillar, in particular, promotes empathy and proactive solutions for societal needs. The private sector and non-governmental organisations (NGOs) also play a crucial role in strengthening the care economy. Social enterprise models can be adopted to encourage private sector involvement in supporting care workers. Additionally, frameworks such as environmental, social and governance can be utilised to evaluate the private sector's contributions to the care economy. NGOs can serve as vital intermediaries by offering community-based support programmes, advocacy for caregivers' rights and training opportunities. Collaborative efforts between the government, private sector and NGOs can help bridge the gaps in existing care services, ensuring they are inclusive, accessible and equitable. The care economy is a vital pillar for societal welfare and the country's economic development. Recognising and strengthening this sector is essential to ensuring Malaysia is prepared to meet the challenges of its aged nation status.
The Sun
a day ago
- The Sun
MIDF Research: Oil prices under pressure as supply outpaces demand
KUALA LUMPUR: Crude oil prices are expected to remain under pressure and could fall below US$65 per barrel (pb) due to persistent oversupply and weaker demand projections, according to MIDF Amanah Investment Bank Bhd (MIDF Research). However, MIDF Research noted that prices may stabilise over the longer term, even as inventories continue to rise. Sentiment surrounding trade policy developments between the United States (US) and China remains a significant risk to market movements, it said in a note today. 'Natural gas and liquified natural gas (LNG) are expected to see a rebound after May 2025's maintenance round concluded for most of the global gas and LNG facilities. 'Nevertheless, the downside risks to the lower oil price remain on new exploration projects, but may be beneficial for onshore storage, long-term tankers and retail fuel,' it said. MIDF Research opines that the scenarios of the global oil market and global economy will continue to keep Brent crude oil price within the US$60-65 pb range, averaging around US$62 pb in June 2025. 'This lower expectation is considering the risks of post-US trade tariff pause, as well as the stockpiling of oil inventories in the near term,' said MIDF Research. Meanwhile, the investment bank said ASEAN collaborations have offered a brighter outlook for the oil and gas (O&G) sector. MIDF Research stated that Petroliam Nasional Bhd (Petronas) is continuing its aggressive exploration and production (E&P) activities in the upstream sector, despite lower crude oil prices. Meanwhile, the midstream and downstream divisions are expected to turn towards sustainability and green energy solutions, integrating these initiatives into their operations. 'During the ASEAN summit that concluded in May 2025, the transportation and logistics of LNG and carbon capture and storage (CCS) were highlighted as strategic priorities for the region. 'More focus was set on renewable energy and hydrogen projects to be integrated with the conventional O&G developments, providing a balanced and sound energy transition as highlighted in Malaysia's National Energy Transition Roadmap (NETR),' it noted. MIDF Research added that regional cooperation is likely to expand through energy security, carbon credit management, Environmental Corporation America (ECA) compliance and CCS solutions. 'In addition, we opine that domestic demand and robust LNG exports will continue to locally support the sector. 'Overall, we retain a 'Neutral' view on the O&G sector, as it continues to face challenges, primarily from oil price volatility, driven by output hikes from the Organisation of the Petroleum Exporting Countries plus (OPEC+) and non-OPEC producers, including sluggish global demand due to tariff-related uncertainties,' it added.
