Negotiations between BPMB and Danajamin are expected to be completed within six months, BPMB said in a statement.
The merger comes as part of the government's proposal in Budget 2020 to restructure and merge BPMB, Danajamin, Export-Import Bank of Malaysia Bhd and Small Medium Enterprise Development Bank Malaysia Bhd to strengthen the DFI ecosystem.
"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," said BPMB.
Phase one of the restructuring plan would involve the merger of BPMB with Danajamin, while the second phase will see the merger of EXIM Bank and SME Bank into the earlier merged entity.
There will be a steering committee led by the Ministry of Finance and comprising various stakeholder ministries as well as Credit Guarantee Corp, Bank Negara and the four DFIs.
A working committee was also established to support the steering comittee in driving the implementation of the merger and providing updates to the public.
We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon!
What do you think of this article?