Malaysia mulls merger of four development institutions

The move is expected to boost efficiency.

SME Bank, Bank Pembangunan Malaysia Bhd, Exim Bank Malaysia and Danajamin Nasional Bhd are set to be merged into an enlarged financial institution as part of the government's plans to meet its development goals, reports New Straits Times. 

Also read: Malaysian bank mergers unlikely to take place in 2019

The merger of development financial institutions (DFIs) will be divided into two phases, Finance Minister Lim Guan Eng was cited in local media reports, although no additional details have been disclosed. 

The central bank is proposing a two-phase restructuring plan for DFIs to form a new financial institution in a move that is expected to create a more productive and efficient platform that could lend support the development agenda. 

DFIs, as specialised institutions, provide a range of specialised financial products and services to suit the specific needs of the targeted strategic sectors.