Purpose must take precedence over profits

KUDOS to Datuk Seri Nazir Razak on his keynote address at the Genesis Alternative Ventures Annual Forum. I was mesmerised by his transformation in investment philosophy wherein purpose takes precedence over profits. There was even a clarion call to fellow finance professionals, especially the younger set, to have “better value systems”. This is indeed very laudable.

My advocacy relates to his new role as chairman of Bank Pembangunan Malaysia (BPM). If one cares to examine the economic roles of a development financial institution (DFI) like BPM, the objective is primarily socio-economic and is in line with national aspirations. DFIs are created to fill the funding gaps caused by asymmetrical conditions in the market and profit motivation of commercial banks. The elephant in the room is whether these noble objectives are fully met.