GOVT HAS NO PLANS TO RESTRUCTURE DFI
KUALA LUMPUR, Dec 18 (Bernama) -- The government has no plans to reorganise or restructure Development Financial Institutions (DFIs), recognising their significance in supporting strategic industries, the Dewan Negara was told today.
Deputy Finance Minister Datuk Ir Amiruddin Hamzah said DFIs played an important role in financing high-risk strategic industries.
“DFIs are taking high risks by financing companies that have a high risk of failure. On the whole, loans to these companies account for 23.4 per cent of loans disbursed by DFIs compared with 17.2 per cent of loans by commercial banks, indicating the capability of DFIs in supporting the sector,” he said when winding up debate for his ministry.
The six DFIs under Bank Negara Malaysia’s purview recorded more than a five-fold increase in loans growth amounting to RM141.9 billion as at end-October compared with RM25.2 billion in 2002 for a total of 2.8 million borrowers thus far.
The DFIs are Bank Pembangunan Malaysia Bhd, SME Bank, Exim Bank Malaysia, Bank Pertanian Malaysia Bhd, Bank Simpanan Nasional and Bank Kerjasama Rakyat Malaysia Bhd.
Amiruddin said the role of DFIs was similar to that of commercial banks, but they needed to balance between their mandate and sustainability so that they stayed focused on their mandate to ensure that all economic sectors would be able to obtain financing.
Among the focused sectors of DFIs are agriculture, small and medium-sized industries, manufacturing, exports, high technology and shipping.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
