BNM issues Corporate Strategic Plan policy document for DFIs

On 27 May 2021, Bank Negara Malaysia (“BNM”) issued the Corporate Strategic Plan (“CSP”) policy document, applicable to all development financial institutions (“DFIs”) prescribed under the Development Financial Institutions Act 2002.

The CSP consolidates the Guidelines on the Statement of Corporate Intent and Annual Funding Requirement which were introduced in 2002 as part of the regulatory requirement to ensure that the financial and operational affairs of a DFI are conducted with greater accountability and transparency.

The aim is for the CSP to serve as a comprehensive framework for a DFI to develop robust and forward-looking corporate strategies to achieve greater developmental outcomes, consistent with the economic agenda driven by the Government of Malaysia. The CSP policy document sets out:

requirements on the board of directors and senior management to provide the strategic direction, oversight and ensure the effective implementation of the CSP;
key features of the CSP which include the enhanced SCI and AFR; and
Implementation Guide on Performance Measurement Framework for Prescribed

The CSP also sets an expectation on DFIs to measure the effectiveness and efficiency of discharging their mandates and creating additionalities through an enhanced performance measurement framework.

The Performance Measurement Framework — Implementation Guide, also issued by BNM on 27 May 2021, is available here.

The CSP is available here.

Prime Minister announces PEMERKASA+

On 31 May 2021, the Prime Minister of Malaysia announced “PROGRAM STRATEGIK MEMPERKASA RAKYAT DAN EKONOMI TAMBAHAN (PEMERKASA+)”, a RM40 billion financial aid package aimed at:

increasing public healthcare capacity;
continuing the public welfare agenda; and
supporting business

Amongst the various measures of PEMERKASA+ relevant to financial services are:

A choice of a three-month loan moratorium or six months of 50% reduced loan repayments for those in the B40 (bottom 40% income) group, those who lost work and small-and-medium enterprises (“SMEs”) that cannot operate during the period of the Movement Control Order; and
An additional RM2 billion as part of BNM’s Targeted Relief and Recovery Facility on top of the already available RM5 billion, which offers loans to small-and- medium enterprises at 3.5 % interest rate.