KUALA LUMPUR: 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 Dec 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, BPMB 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
