KUALA LUMPUR: The restructuring of the Development Financial Institutions (DFIs) involving Bank Pembangunan Malaysia Bhd (BPMB), Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank), and Export-Import Bank of Malaysia Bhd (EXIM Bank) is in line with the national agenda to implement reforms and strengthen government-owned institutions, said the Ministry of Finance (MoF).

The ministry said there is a need for the government to realign the mandates, assess the operational efficiency and performance, as well as the service delivery of each institution to ensure that these institutions fulfil their mandates and remain relevant.

"As such, this restructuring of government-owned DFIs will see updated mandates, enhanced service delivery effectiveness, strengthened capital capacity, and expanded customer networks," it said in a written reply on the Parliament website today.

The ministry was responding to a question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) on the government's stance on the proposal to merge these three local banks and its impact on the growth of the micro, small, and medium enterprises (MSMEs) sector.

Meanwhile, the ministry informed that among the benefits to MSMEs from this restructuring is improved access to larger financing for business expansion through existing credit records when all borrower data is centralised.

Additionally, the merger of the three banks under the restructuring is expected to improve the efficiency of financial service delivery.

"With EXIM Bank's participation in this restructuring, MSMEs will have more opportunities to obtain financing and incentives for export purposes.

"This will open doors for them to expand their businesses overseas and capitalise on opportunities in the global market," it said.

TAGS: Restructuring, Merger, BPMB, SME Bank, EXIM Bank, MSMEs