Bank Negara on Islamic mega banking licence

KUALA LUMPUR: Bank Negara said applications for Islamic mega bank licences are market-driven and private sector-led. “Those entities exploring the possibility of participating as an investor will determine their own course of action based on their assessment of the business viability of the investment,” it said in a statement yesterday.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/27/business/11555972&sec=business
Published: Jun 27, 2012

Stringent criteria and assessments by Bank Negara would be applied on prospective investors and the licensee as required by the law, it said.

Bank Negara said entities applying for Islamic mega bank licences were required to meet all its existing rules and regulations.

“A full licence will only be awarded once all legal and regulatory requirements are met,” the central bank said. in updating the status of Islamic mega bank licences. — Bernama

Lesen bank Islam mega akan dikeluar

KUALA LUMPUR 26 Jun - Lesen penuh bagi bank Islam mega di Malaysia akan dikeluarkan apabila semua keperluan undang-undang dan pengawas selia dipatuhi. Bank Negara Malaysia (BNM) berkata, semua entiti yang memohon lesen tersebut dikehendaki memenuhi semua peraturan dan pengawalan sedia ada yang ditetapkan oleh bank pusat itu.

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0627&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_02.htm
Published: Jun 27, 2012

Menurutnya, permohonan lesen adalah didorong oleh pasaran dan diterajui oleh sektor swasta.

"Entiti yang berhasrat untuk menyertai sebagai pelabur perlu menentukan tindakan masing-masing berdasarkan penilaian mereka terhadap daya maju perniagaan bagi pelaburan itu," katanya dalam kenyataan di sini hari ini.

Wang kertas baru di pasaran

KUALA LUMPUR 26 Jun - Bank Negara Malaysia (BNM) berkata, wang kertas siri baru Malaysia akan berada dalam edaran mulai 16 Julai 2012. Berikutan itu, BNM telah mengadakan beberapa sesi pertemuan sejak beberapa bulan yang lalu dengan pihak berkepentingan bagi membolehkan pengenalan wang kertas siri baru Malaysia ini berjalan dengan lancar.

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0627&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_01.htm
Published: Jun 27, 2012


Mereka yang terlibat ialah institusi kewangan, kompleks membeli-belah, syarikat pengangkutan awam, syarikat telekomunikasi, pengendali tempat letak kereta, pemilik kios pembayaran serta pengendali mesin wang tunai dan tiket.

BNM dalam kenyataan di sini berkata, sekiranya pihak berkepentingan tersebut belum berbuat demikian, mereka hendaklah mempercepatkan pengubahsuaian mesin mereka agar boleh menerima wang kertas siri baru untuk kemudahan orang ramai.

Seandainya pengubahsuaian mesin mereka tidak dapat disiapkan menjelang 16 Julai ini, penyelesaian alternatif hendaklah disediakan, contohnya penyediaan kaunter pertukaran wang kertas atau kaunter tiket manual.

Orang ramai boleh menghubungi BNMLINK di 1-300-88- 5465 atau menelefon 03-26988044 sambungan 7307/ 8658 atau menghantar e-mel kepada ncs@bnm. gov. my untuk maklumat lanjut.

Formulate Better System To Deal With CCRIS And CTOS, Bank Negara Urged

PUTRAJAYA, June 25 (Bernama) -- The Ministry of Finance (MoF) has urged Bank Negara to come up a better system to deal with Central Credit Reference Information System (CCRIS) and credit information provider Credit Tip-Off Service (CTOS) to assist small and medium enterprises (SMEs) to get bank loans

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=675758
Published: Jun 26, 2012

Deputy Finance Minister Datuk Donald Lim Siang Chai said the SMEs had brought to his attention the issues on CCRIS' and CTOS' failure to update details on applicants who were blacklisted, and that it had affected the SMEs in securing loans.

"These are the areas we want Bank Negara to look into especially on CCRIS and CTOS, which was the reason why many SMEs failed to get loans. They (blacklisted) should be released from bankruptcy and come back to normal life. We want a system that can help everyone to go back to be entrepreneurs and are able to get loans from banks.

"We want Bank Negara to come out with appropriate actions so that the SMEs can get loans. There were complaints that they (SMEs) have settled the loans, however, Bank Negara was not informed.

"We want Bank Negara to monitor from time to time. Besides that, we also told the banks that it is their responsibility to inform Bank Negara too," he told reporters here.

-- BERNAMA

Mega Islamic bank will set benchmark

IPOH: The setting up of mega Islamic banks in Malaysia will not merely serve the needs of the domestic economy but also position the country as the benchmark in Islamic global finance, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=675402
Published: Jun 27, 2012

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/25/business/11543548&sec=business
Published: Jun 25, 2012

It would also place Malaysia far ahead of other competing countries, he said.

“Bank Negara has issued one licence. Why is there such a need… we need to see in the context of the country’s economy.

“Under the National Key Economic Areas, financial services are among the economic growth sectors and it is also an area where we are competing with other countries,” he told reporters after officiating the opening of Mydin’s 100th chain store and its 10th hypermarket at Gugusan Manjoi.

Bank Negara so far has not made any announcement on the licence’s receipient.

Last March, the central bank expected two entities, which were given temporary licences to set up mega Islamic banks, to make the announcements on their investment plans.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said the central bank had given them more time to announce their plans considering the current challenging environment and the high investment cost involved. — Bernama

Malaysia bakal penanda aras kewangan Islam global

LANGKAH penubuhan bank Islam mega mampu menjadikan Malaysia sebagai penanda aras dalam kewangan Islam global serta memenuhi keperluan ekonomi domestik, kata Menteri Kewangan Kedua Datuk Seri Ahmad Husni Hanadzlah.

Source from (Berita Harian): http://www.bharian.com.my/bharian/articles/MalaysiabakalpenandaaraskewanganIslamglobal/Article
Published: Jun 25, 2012

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0625&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_02.htm
Published: Jun 25, 2012

Menteri Kewangan Kedua, Datuk Seri Ahmad Husni Hanadzlah berkata, penubuhan bank itu juga selari dengan Bidang Ekonomi Utama Negara (NKEA) yang menjadikan perkhidmatan kewangan sebagai pemacu utama perkembangan ekonomi.

"Sebenarnya, Bank Negara Malaysia (BNM) telah mengeluarkan satu lesen bank Islam mega. Salah satu mengapa ia diperlukan ialah perkhidmatan kewangan merupakan sektor yang bersaing dengan negara luar.

"Kita memikirkan perbankan Islam dan hab kewangan Islam global, justeru kita mesti berada di hadapan para pesaing," katanya selepas merasmikan pembukaan cawangan ke-100 Pasar Raya Besar Mydin di Gugusan Manjoi di sini hari ini.

Hadir sama Pengarah Urusan Mydin Mohamed Holdings Berhad, Datuk Dr. Ameer Ali Mydin dan Ahli Dewan Undangan Negeri (ADUN) Manjoi, Datuk Nadzri Ismail.

Beliau diminta mengulas mengenai pelan perancangan BNM untuk mengeluarkan sehingga dua lesen kepada bank Islam mega dalam usaha kerajaan untuk meliberalisasi sektor kewangan di negara ini.

Gabenor BNM, Tan Sri Zeti Akhtar Aziz ketika mengulas kelewatan penubuhan bank Islam mega tersebut Mei lalu berkata, proses pengeluaran lesen berkenaan mengambil masa lebih panjang kerana membabitkan penubuhan entiti perbankan baru.

Menurutnya, ia juga mengambil sedikit masa berbanding lesen bagi institusi asing yang sudah wujud dalam pasaran.

Tambah Zeti, penubuhan bank Islam mega itu bagaimanapun akan tetap diteruskan kerana ia merupakan perancangan kerajaan.

Asia in ‘better state of readiness’

PETALING JAYA: Asian countries are in a “better state of readiness” to deal with shocks in the global economy as a result of the wide-ranging reforms it pursued in the aftermath of the Asian financial crisis, said Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/23/business/11536771&sec=business
Published: Jun 23, 2012

“The effectiveness of these reforms was put to test during the recent global crisis. While affected by the crisis, the effects on the domestic economies and financial systems have been relatively contained.

“Importantly, financial intermediation has not been disrupted, and the financial systems have continued the supply of credit to support the real economy,” she said in her keynote address at the Wharton Global Alumni Forum in Jakarta, Indonesia.

“The building of sufficient capital and liquidity buffers during good times provided the ability to support the continued credit intermediation process. Improved regulatory and supervisory approaches, underpinned by enhanced governance and risk management practices, have enhanced financial stability in the region.

“Continued efforts were also made to further advance financial sector development in the region. In particular, the development of the domestic bond market has served to reinforce the foundations for financial stability in Asia.

“Financial activities have also remained generally anchored by productive real economic activities. In addition to the region's strong external position, high international reserves and more flexible exchange rates have also enabled Asia to absorb and adjust to changing external conditions,” Zeti said.

While noting that Asia's openness made it vulnerable to adverse developments in the external environment, she said the region's increasing cohesiveness was a core strength and source of stability.

International reserves at RM417.3bil

KUALA LUMPUR: Bank Negara's international reserves amounted to RM417.3bil (equivalent to US$136bil) as at June 15.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/23/business/20120623081108&sec=business
Published: Jun 23, 2012

The reserves position was sufficient to finance 9.3 months of retained imports and was 4.1 times the shortterm external debt, said the central bank in a statement yesterday. It said the main components of the international reserves were foreign currencies (US$123.3 bil); International Monetary Fund reserves (US$900 mil); special drawing rights (SDRs) (US$2bil); gold (US$1.9bil) and other reserves assets (US$7.9 bil).

The central bank's total assets, including international reserves, stood at RM472.008 bil. Its other assets included Malaysian government papers (RM2.126bil); deposits with financial institutions (RM33.442 bil); loans and advances (RM10.306bil); and other assets (RM8.859bil). - Bernama

Global forum to discuss growth of Islamic finance

KUALA LUMPUR: Bank Negara will host the third Global Islamic Finance Forum (GIFF), beginning Sept 18, to discuss and exchange views on the growth and opportunities in the internationalisation of Islamic finance and strengthening cross-border economic interlinkages.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/22/business/11527841&sec=business
Published: Jun 22, 2012

The GIFF 2012 is a high-level multi-track event that brings together regulators, scholars and financial industry players who are key drivers in the global development of Islamic finance.

The event is organised in collaboration with the Securities Commission, Bursa Malaysia, Association of Islamic Banking Institutions Malaysia, Malaysian Takaful Association and International Shari’ah Research Academy for Islamic Finance.

The main coordinator for the event was the Islamic Banking and Finance Institute Malaysia, said the central bank in a statement.

Several multi-track events would be held concurrently with GIFF 2012 which, among others, would include the Global Islamic Liquidity Management Conference, Islamic Microfinance and Financial Inclusion Forum, Bridging Economies Forum, Global Islamic Finance Taxation Forum and a SME Workshop on Leveraging on Islamic Financing Opportunities, it said.

Senior officials from regulatory agencies, statutory bodies, government agencies, Islamic and conventional financial institutions, financial market players and professional services in Malaysia and abroad can participate in the event, which is by invitation, by registering on the GIFF 2012 website, www.GIFF.com.my. — Bernama

Domestic growth still strong, rates appropriate, says Bank Negara

KUALA LUMPUR, June 20 – Malaysia’s central bank governor Zeti Akhtar Aziz said domestic growth remains strong despite global economic uncertainties and that the country’s interest rates were “appropriate.”

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/21/business/11520877&sec=business
Published: Jun 21, 2012

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/zet20/Article/
Published: Jun 21, 2012

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/domestic-growth-still-strong-rates-appropriate-says-bank-negara/
Published: Jun 21, 2012


“Right now our domestic growth is still strong and our inflation is still moderating.

“We will monitor the situation very closely.

“At this point in time, unless there are any significant development, in our assessment they are (interest rates) at appropriate level,” she told reporters at INCEIF, The Global University of Islamic Finance campus opening ceremony.

Bank Negara's INCEIF, established in 2005, has 2,221 students from some 80 countries as of this month.

Asked whether the outcome of Greece's elections and G-20 meeting would affect Asia's growth, especially Malaysia, Zeti said: “Conditions are still unfolding and we do not have clarity at this point of time what the outcome will be”.

She said Bank Negara would monitor very closely the debt crisis development in the euro zone.

The next monetary policy committee meeting is scheduled to be held on July 5.

On a recent news report on the RM60bil sale of non-performing loans (NPLs) to foreign parties by Malaysian banks, Zeti said that for the past two to three years, about RM2.5bil NPLs were disposed off to majority-owned domestic entities and not to foreigners.

“We have the appropriate guidelines in place that allow commercial banks to sell NPLs and these guidelines have been fully complied with,” she added. - Bernama

Zeti: Kadar faedah masih "sesuai" dengan pasaran domestik kukuh

KUALA LUMPUR - Kadar faedah Malaysia pada tiga peratus sekarang masih "bersesuaian", dan pasaran domestik masih kukuh, kecuali berlaku perkembangan ketara, kata Gabenor Bank Negara Tan Sri Dr Zeti Akhtar Aziz hari ini. Pada masa ini, pertumbuhan domestik masih kukuh dan inflasi masih sederhana. Kami akan memantau rapat situasi itu.

Source from (Sinar Online): http://www.sinarharian.com.my/bisnes/zeti-kadar-faedah-masih-sesuai-dengan-pasaran-domestik-kukuh-1.58575
Published: Jun 21, 2012

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0621&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_02.htm
Published: Jun 21, 2012


Raja Nazrin Shah Sultan Azlan Shah menurunkan tandatangan sebagai simbolik perasmian kampus baru Pusat Pendidikan Kewangan Islam Antarabangsa sambil diperhatikan Dr. Zeti Akhtar Aziz (dua kanan ) dan Dr. Rozali Mohamed Ali (kanan) di Bangsar, Kuala Lumpur, semalam.

"Pada masa ini, kecuali berlaku perkembangan ketara, pada penilaian kami, kadar faedah pada paras yang sesuai," katanya kepada pemberita pada INCEIF, majlis pembukaan kampus INCEIF, Pusat Pendidikan Kewangan Islam Antarabangsa.

INCEIF Bank Negara, yang ditubuhkan pada 2005, mempunyai 2,221 penuntut dari 80 negara setakat bulan ini.

Ditanya sama ada hasil pilihan raya Greece dan mesyuarat G-20 memberikan kesan ke atas pertumbuhan Asia, terutama Malaysia, Zeti berkata: "Keadaan masih tidak menentu dan pada masa ini kami belum jelas mengenai impaknya".

Beliau berkata Bank Negara akan memantau rapat perkembangan krisis hutang zon euro.

Mesyuarat jawatankuasa moneteri berikutanya dijadual berlangsung pada 5 Julai.

Mengenai laporan berita membabitkan penjualan pinjaman tidak berbayar (NPL) sebanyak RM60 bilion kepada pihak asing oleh bank-bank Malaysia, Zeti berkata sejak dua hingga tiga tahun lepas, kira-kira RM2.5 bilion NPL dilupuskan kepada entiti domestik dan bukan kepada pihak asing.

"Kami menyediakan garis panduan yang membolehkan bank-bank menjual NPL dan garis panduan ini dipatuhi sepenuhnya," katanya.- Bernama

Bank Negara: Banks can sell NPLs as part of risk management

KUALA LUMPUR: Banks can dispose off non-performing loans (NPLs) as part of their risk management practice, Bank Negara said. Disposal of NPLs provides the flexibility for banks to manage their loan portfolio effectively and efficiently to maximise recovery to protect depositors' interest, the central bank said.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/21/business/11519970&sec=business
Published: Jun 21, 2012

“Any recovery action must be in accordance with the law,” it said in reference to a recent news report on banks selling NPLs to foreign parties.

Bank Negara said the report was inaccurate and misleading.

The number of NPLs sold as stated in the report was grossly overstated, it said, adding that since 2005, NPLs sold totalled less than RM3bil.

Bank Negara said banks were permitted to sell their NPLs to non-banking entities provided the sale was made in accordance with the requirements of the guidelines on the disposal and purchase of NPLs which are issued under the Banking and Financial Institutions Act (Bafia) 1989.

Under the guidelines, banks can only sell NPLs to locally-incorporated companies and the purchaser must be majority-owned by domestic shareholders as the buyer is subject to the 49% foreign equity cap.

Banks were also required to undertake necessary measures to inform the borrower of the NPLs' sale, Bank Negara said.

“NPLs sale made in accordance with the guideline requirements does not contravene Bafia and does not affect any debt restructuring agreements,” it added. - Bernama

Bank jual RM2.5b NPL kepada syarikat tempatan

INSTITUSI perbankan tempatan hanya menjual kira-kira RM2.5 bilion pinjaman tidak berbayar (NPL) dalam tempoh dua hingga tiga tahun lalu, kata Gabenor Bank Negara Malaysia, Tan Sri Dr Zeti Akhtar Aziz. Beliau berkata, NPL itu pula dijual kepada kepada syarikat tempatan sejajar dengan garis panduan yang ditetapkan bank pusat.

Source from (Berita Harian): http://www.bharian.com.my/bharian/articles/BankjualRM2_5bNPLkepadasyarikattempatan/Article
Published: Jun 21, 2012


RAJA Dr Nazrin Shah merasmikan kampus baru INCEIF dan ISRA 
sambil diperhatikan Zeti (dua dari kanan) di Kuala Lumpur, semalam.

“Kami telah menyediakan garis panduan yang membolehkan bank komersial untuk menjual sebahagian daripada NPL masing-masing dan garis panduan ini dipatuhi sepenuhnya oleh mereka (pihak bank),” katanya kepada media selepas perasmian kampus baru Universiti Global bagi Kewangan Islam (INCEIF) dan Akademi Penyelidikan Syariah Antarabangsa bagi Kewangan Islam (ISRA) di Kuala Lumpur, semalam.

Perasmiannya disempurnakan Raja Muda Perak, Raja Dr Nazrin Shah yang juga Duta Kewangan Pusat Kewangan Islam Antarabangsa Malaysia (MIFC).

Zeti berkata demikian bagi mengulas laporan sebuah akhbar baru-baru ini yang melaporkan bahawa sejak 2005, bank tempatan telah menjual NPL berjumlah RM60 bilion.

Memetik sumber, akhbar itu melaporkan NPL itu dijual kepada agensi pemungut hutang yang dikuasai pemegang saham asing.

Terdahulu Bank Negara dalam kenyataannya menjelaskan perkara itu berkata, bank boleh menjual NPL masing-masing sebagai sebahagian daripada amalan pengurusan risiko.

Katanya, penjualan NPL itu bertujuan memberikan fleksibiliti kepada bank untuk menguruskan portfolio pinjaman dengan lebih berkesan bagi memaksimumkan langkah pemulihan yang diambil bagi melindungi kepentingan pendeposit.

“Bagaimanapun sebarang tindakan pemulihan yang diambil perlu berlandaskan undang-undang.

“Bank dibenarkan menjual NPL masing-masing kepada institusi bukan bank jika penjualan ia dibuat sejajar dengan keperluan Garis panduan tentang Penjualan /Pembelian Pinjaman Tidak Berbayar oleh Institusi Perbankan yang dikeluarkan di bawah Akta Bank dan Institusi-Institusi Kewangan 1989,” katanya.

Mengikut garis panduan itu, bank hanya boleh menjual NPL kepada syarikat yang diperbadankan dalam negera dan mempunyai saham majoriti oleh pemegang saham tempatan kerana tertakluk kepada had ekuiti asing sebanyak 49 peratus.

Bank juga dikehendaki mengambil langkah perlu untuk memaklumkan penjualan NPL itu kepada peminjam, kata kenyataan Bank Negara itu.

Sementara itu, Zeti berkata, kadar faedah tempatan masih berada pada paras sesuai kerana pertumbuhan ekonomi domestik kekal kukuh di sebalik kedudukan ekonomi global yang tidak menentu.

Beliau berkata, inflasi semasa juga berada pada paras sederhana.

Bagaimanapun, katanya Bank Negara akan memantau rapi perkembangan yang berlaku dalam ekonomi global khususnya di Eropah.

Bank pusat itu akan mengadakan mesyuarat Jawatankuasa Dasar Monetari (MPC) bagi menetapkan dasar monetari semasanya pada 5 Julai ini.

Sementara itu, Presiden dan Ketua Eksekutif INCEIF, Daud Vicary Abdullah dalam ucapannya berkata INCEIF dan ISRA berharap dapat meraih pengiktirafan global bagi aspek perkhidmatan yang disediakan meliputi kandungan program, kualiti pengajaran dan khidmat rundingan.

Beliau berkata, kedua-dua institusi ini akan terus memfokuskan kepada industri kewangan Islam selain merapatkan jurang antara ahli akademi dengan peserta industri dan memacu untuk mencapai tahap piawaian global dalam pendidikan kewangan Islam, latihan dan penyelidikan.

Bank Negara to keep key interest rate unchanged

KUALA LUMPUR: Bank Negara will maintain its key benchmark interest rate at 3% due to robust domestic demand unless the country's export growth is affected sharply by global developments, including the eurozone sovereign debt crisis.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/13/business/11465166&sec=business
Published: Jun 13, 2012

Its governor Tan Sri Dr Zeti Akhtar Aziz said the central bank was closely monitoring the global situation.

Domestic demand was still very robust; it was the trade that had been affected by the developments in Europe, she said.



Bank Negara would maintain interest rate at the current level unless export growth was affected sharply, Zeti said on the sidelines at the launch of the Financial Institutions Directors Education Forum here yesterday.

“The domestic demand comprising of consumption is still strong, investments are robust and loan growth is also strong. These are the factors that will be taken into consideration in deciding the overnight policy rate (OPR),'' she said when asked whether Bank Negara was prepared to cut interest rates at its next monetary policy committee (MPC) in the event of any disruptive global growth.

Zeti said consumption was currently growing by 6% to 7% while investments, on the other hand, were growing by more than 10%. This, she said, was positive for the country's economy to remain in the range of 4% to 5% growth for this year .

The MPC maintained the key benchmark interest rate or OPR at 3% for the sixth consecutive meeting, citing that domestic demand had continued to support growth, driven by firm consumption and investment activity and expected this trend to continue.

Data released by central bank for the first quarter showed that gross domestic product expanded by 4.7% year-on-year supported mainly by domestic activities.

Malaysian exports contracted for the second consecutive month in April from a year earlier on weaker electrical and electronics products, and commodities sales to developed economies.

Exports for the month fell 0.1% to RM57.74bil from RM57.8bil previously, while imports rose 7.4% to RM50.23bil.

New financial services law to be tabled

KUALA LUMPUR: The new financial services legislation will be tabled in the current Parliament sitting, according to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/13/business/11466648&sec=business
Published: Jun 13, 2012

She said the central bank had made proposals in the legislation which would augment the general duties and responsibilities of the board under the Companies Act so as to provide emphasis to the specific key considerations in the responsibilities of boards of financial institutions.

“Boards will now need to have regard to the interests of depositors and policyholders, the long-term viability of the institution and to have in place reasonable standards of fair dealings in the oversight of the implementation of the business and risk strategies of the institution.

“The statutory duties would also include an explicit duty to ensure and oversee the effective design and implementation of a sound control environment,’’ she said in a her keynote address at the laumch of Financial Institutions Directors Education forum yesterday.

Zeti said work had also commenced to update and streamline the current regulatory guidelines on corporate governance for banks, insurers and takaful operators to reduce duplication across different standards and to sharpen the focus on the overall responsibility of the board for risk and control.

Existing prescriptive rules would give way to broader principles of behaviour, she added, noting that the review would also better align the regulatory framework with the current supervisory approach.

A thematic review of the remuneration practices in the financial sector was also planned to take into account how it might influence risk-taking behaviour, she said.

She said the environment confronting financial institutions would continue to be immensely challenging and as such a number of areas would become more important to reinforce the effectiveness of boards and sound governance.

First, board-level engagements on risk issues must to be strengthened further and this could only be achieved if boards had sound understanding of the institution’s business model, and a strong grasp of the changing complexion of risks in which the institution was exposed, Zeti said.

Second, with the growing expansion of financial institutions in scale and complexity, there was a need to inject greater diversity into boards to enable the board collectively to deal with the broader range of issues across the institution’s activities, she said. This needed to be embedded within the framework for board renewal and succession, she noted.

With increased expectations placed on boards, they (boards) would need to have the means to objectively evaluate their own performance and examine ways in which board effectiveness could be improved, she said.

Zeti added that overcoming cultural norms that impede more formal processes for open and honest engagement among peers remained a challenge.

BNM to keep close eye on euro zone crisis, says Zeti

KUALA LUMPUR, June 12 — Bank Negara Malaysia (BNM) will continue to monitor the developments in Europe closely, said Governor Tan Sri Dr Zeti Akhtar Aziz. Zeti said the country’s domestic demand was still strong and robust.

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/zeti-hints-at-malaysia-not-cutting-interest-rate/
Published: Jun 13, 2012

Source from (The Sun Daily): http://www.thesundaily.my/news/405526
Published: Jun 13, 2012



However, trade has been affected by the developments in Europe, she said.

“So, we really have to balance it because domestic demand, comprising consumption growing by six to seven per cent, investment of over 10 per cent and loan growth, is still robust and strong.

“This is positive for us going forward and it is likely the growth will be in the range of four to five per cent unless the export growth continues to be affected sharply by the development around the world,” she told reporters after delivering a keynote address at the Financial Institution Directors Education Forum here today.

Malaysia’s exports in April 2012 dipped slightly to RM57.74 billion from RM57.8 billion a year ago, weighed down by slower growth in the major economies and Europe’s debt crisis. — Bernama

Kadar faedah: BNM pantau perkembangan di Eropah

BANK Negara Malaysia akan memantau rapi perkembangan yang berlaku dalam ekonomi global, khususnya di Eropah sebelum membuat keputusan berhubung kadar faedah tempatan dalam mesyuarat dasar monetari akan datangnya bulan depan.

Source from (Berita Harian): http://www.bharian.com.my/bharian/articles/BankNegarabelummuktamadkadarfaedahtempatan/Article
Published: Jun 13, 2012

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0613&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_01.htm
Published: Jun 13, 2012

Gabenornya, Tan Sri Dr Zeti Akhtar Aziz, menegaskan bagaimanapun berdasarkan keadaan semasa di dalam negara, permintaan domestik masih sangat kukuh dan berdaya tahan meskipun sektor perdagangan terjejas kerana perkembangan yang berlaku di Eropah.

“Kita masih perlu menyeimbangkan (keadaan) kerana permintaan domestik yang terdiri daripada perbelanjaan dan pelaburan masih mantap, manakala pertumbuhan pinjaman adalah sangat kukuh.

“Faktor sedemikian akan diambil kira (sebelum menetapkan kadar faedah tempatan),” katanya kepada media selepas menyampaikan ucaptama dan melancarkan Forum Pendidikan Pengarah Institusi Pendidikan (FIDE) di Kuala Lumpur, semalam.

Zeti berkata, jika perkembangan di Eropah, khususnya kemungkinan Greece untuk keluar daripada pakatan Kesatuan Eropah (EU) boleh menyebabkan situasi global menjadi bertambah buruk, maka keputusan berhubung kadar faedah tempatan akan mengambil kira sepenuhnya situasi permintaan domestik.

Beliau berkata, beberapa langkah memperkukuhkan permintaan domestik meletakkannya pada aliran kukuh, dengan perbelanjaan berkembang sekitar tujuh peratus manakala pelaburan meningkat kira-kira 10 peratus setakat tahun ini.

“Dengan perkembangan itu, kami berasakan ia sangat positif untuk ekonomi secara keseluruhannya menuju ke depan dengan sasaran pertumbuhan antara empat ke lima peratus, melainkan pertumbuhan eksport terus terjejas oleh perkembangan yang berlaku di seluruh dunia,” katanya.

Bulan lalu, Bank Negara mengekalkan kadar dasar semalaman (OPR) yang menjadi penanda aras kadar pinjaman asas (BLR) bank tempatan pada kadar tiga peratus, di tengah-tengah meningkatnya risiko kepada pertumbuhan ekonomi global berikutan ketidakpastian terhadap krisis hutang di zon euro.

Ia mengekalkan kadar faedah itu pada paras semasa sejak 5 Mei tahun lalu apabila ia menaikkan OPR kepada tiga peratus daripada 2.75 peratus sebelum itu.

Bank pusat itu akan mengadakan mesyuarat Jawatankuasa Dasar Monetari (MPC) bagi menetapkan dasar monetari semasanya pada 5 Julai ini.

Perkembangan rapuh ekonomi dunia ketika ini menyebabkan beberapa bank pusat membuat keputusan menurunkan kadar faedah masing-masing dalam dua minggu ini termasuk China, Australia dan Vietnam

Rang undang-undang khidmat kewangan ke Parlimen

KUALA LUMPUR 12 Jun - Bank Negara Malaysia (BNM) berharap rang undang-undang perkhidmatan kewangan digubal dibentangkan pada sesi Dewan Rakyat yang sedang bersidang ketika ini, kata Gabenor Bank Negara, Tan Sri Dr. Zeti Akhtar Aziz.

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0613&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_02.htm
Published: Jun 13, 2012

Menurut beliau, rang undang-undang tersebut akan memperluaskan lagi tugas dan tanggung jawab ahli lembaga pengarah yang berada di bawah Akta Syarikat.

Rang undang-undang tersebut bakal memberi fokus kepada pertimbangan utama khusus kepada tanggungjawab yang perlu dipikul oleh institusi-institusi kewangan.

"Ahli-ahli lembaga pengarah perlu memikirkan kepentingan pendeposit serta pemegang polisi serta meletakkan standard-standard munasabah semasa menjalankan perniagaan dan melaksanakan strategi berisiko, " katanya semasa berucap merasmikan Forum Pendidikan Pengarah Pengarah Institusi Kewangan (FIDE) di sini, hari ini.

Zeti menambah, undang-undang tersebut juga merangkumi tugas-tugas jelas yang perlu dilakukan ahli-ahli lembaga pengarah bagi memastikan dan memantau rekaan dan pelaksanaan perniagaan yang terkawal dan baik.

Selain itu, kerja-kerja mengemas kini dan mengukuhkan panduan kawal selia urus tadbir korporat bagi bank-bank, pengendali insurans dan takaful turut giat dijalankan.

"Kami mahu mengurangkan standard yang berbeza-beza yang diamalkan ketika ini sekali gus memberi fokus kepada tanggung jawab keseluruhan ahli lembaga pengarah untuk risiko dan kawalan," katanya.

Robust local economy, says Zeti

KUALA LUMPUR: The country’s economy will be sustained at the current level going into the second half of this year, supported by the robust domestic economy, Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz said yesterday.

Source from (The Malay Mail): http://www.mmail.com.my/story/robust-local-economy-says-zeti
Published: Jun 09, 2012

She said the business environment in the country is very supportive with improved level of competitiveness, efficiency and continued access to financing as well as an orderly market to raise funds.

“Banks have remained solid and sound with their favourable profitability, so all these are positive for our economy,” she said when launching the Labuan Financial Services Authority’s annual report.

She said despite the economic crisis in Europe, the central bank is maintaining the growth forecast of 4-5% for Malaysia this year. Zeti said the central bank had already priced-in the effect of the eurozone economic crisis into the forecast.

“In fact, it declined only recently and we had expected the moderation to happen earlier.”

She said BNM is confident of the projected growth range given the robust domestic demand and private investment activities. What is also particularly encouraging is the private sector investment, she said, adding that the sector is expected to contribute to the current growth and future growth.

On the overnight policy rate, she said it has been very supportive of the economic growth. Loan growth has been in the 12% range, indicating that the interest rate level is not an inhibiting factor for the domestic economy’s growth, she added.

Zeti also said the Labuan Financial Services Authority’s (LFSA) operating income for fiscal year ended Dec 31, 2011, rose to RM26.9 million from RM23 million in the same period last year.

LFSA is the regulatory body to spearhead and coordinate efforts to promote and develop Labuan International Business and Financial Centre.

“The growth momentum was sustained in 2011 despite the challenging global environment.”

Zeti said the banking sector saw an increase of 24.1% in total loans to US$24.7 billion (RM78.1 billion) from US$19.9 billion (RM62.9 billion) in 2010 while total assets rose to US$38.3 billion (RM121.1 billion) from US$33.9 billion (RM107.2 billion) previously.

The insurance sector’s total premiums rose 33% to US$1.6 billion (RM5.1 billion) from US$1.2 billion (RM3.8 billion) in 2010 and total assets grew 16.1% to US$3.6 billion (RM11.4 billion) from US$3.1 billion (RM9.8 billion).

Eksport jatuh tidak jejas KDNK - BNM

KUALA LUMPUR 7 Jun - Pertumbuhan ekonomi negara dijangka kekal sekitar empat hingga lima peratus pada tahun ini, walaupun eksport mengalami penyusutan berbanding tahun lalu. Gabenor Bank Negara Malaysia (BNM), Tan Sri Zeti Akhtar Aziz (gambar) berkata, Keluaran Dalam Negara Kasar (KDNK) akan kekal memandangkan ekonomi domestik kukuh, permintaan perbelanjaan tinggi, aktiviti pelaburan dan pelaburan swasta yang memberangsangkan.

Source from (Utusan Malaysia): http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0608&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_01.htm
Published: Jun 09, 2012



''Kita masih yakin pertumbuhan ekonomi akan berada sekitar empat hingga lima peratus.

''Pada masa yang sama, kita perlu melihat kepada apa yang bakal berlaku di Eropah, terutama dalam tempoh beberapa hari dan minggu akan datang kedudukan di rantau itu akan lebih jelas.

''Sekiranya, khabar positif diterima, pertumbuhan adalah sekitar apa yang dijangka. Walaupun eksport negara mengalami penurunan, kami telah mengambil kira faktor tersebut ketika membuat unjuran,'' katanya.

Beliau berkata demikian kepada pemberita selepas membentangkan laporan tahunan Lembaga Perkhidmatan Kewangan Labuan (Labuan FSA) 2011 di sini hari ini.

Tambah Zeti, penyusutan eksport hanya berlaku baru-baru ini, BNM menjangkakan angka sederhana itu lebih awal.

''Oleh itu, faktor tersebut telah diambil kira. Tetapi apa yang menggalakkan adalah pelaburan sektor swasta dengan pelaburan yang turut dilakukan kerajaan.

''Kami percaya ini akan menyumbang bukan hanya kepada pertumbuhan semasa tetapi juga pertumbuhan dalam beberapa tahun akan datang,'' jelasnya.

Ditanya mengenai keadaan ekonomi Eropah yang semakin buruk bakal menjejaskan Asia, Zeti percaya rantau ini mampu bangun dan meneruskan potensi pertumbuhan.

''Sekiranya keadaan bertambah buruk di Eropah, ekonomi global akan turut terkesan. Tetapi, rantau Asia mampu pulih dengan pantas seperti apa yang berlaku pada 2008 dan 2009.

''Ini kerana, kita mempunyai akses berterusan kepada pembiayaan, rizab dan kita mempunyai sistem kewangan maju yang dapat menangani sebarang isu,'' katanya.

Bank Negara says growth on track and sticks to 4% to 5% forecast

KUALA LUMPUR: Bank Negara is maintaining its growth forecast for the country this year at 4% to 5% but is closely monitoring the ongoing debt crisis in Europe, said governor Tan Sri Dr Zeti Akhtar Aziz.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/8/business/11438238&sec=business
Published: Jun 08, 2012

“As of now, the prospect for moderation in growth in the global economy has already been priced in.

“But we recognise the risks that exist if Europe doesn't emerge with a solution to the evolving debt crisis that is unfolding,” Zeti said at a briefing on the Labuan Financial Services Authority's annual report 2011.

She added that should the solutions come, it would resolve many issues. Then, the growth projection would “remain intact”.


Zeti with the Labuan Financial Services Authority’s annual report 2011

However, should things get worse with deep recession taking place in Europe, all global economies would be affected, she said.

“But I would like to highlight that these are not new developments to the region. When the global economy suffered an economic contraction in 2008-2009, Malaysia was able to minimise the contraction to just over 1%,” Zeti said, adding that most countries in Asia then recovered rapidly.

Zeti said should a crisis happen again, Malaysia would be “able to emerge quickly” because the country did not have the kind of conditions prevailing in the crisis-affected countries.

Moreover, Malaysia had low unemployment, continued access to financing, low inflation rate and surplus on its balance of payment current account, she said.

“We have reserves buffer to insulate us from any impact of significant deleveraging and we have a more developed financial system that is able to intermediate the volatility that would emerge out of a major downturn,” she said.

Zeti believes that Asia would be able to rise to the challenge and emerge again to resume its growth potential.

She said the region had also become more cohesive and had come together in terms of surveillance and managing crisis, noting that it now had an integrated crisis management framework in place.

On the softer trade numbers announced recently, Zeti said: “Yes, our exports have declined but we have already priced that in. In fact, it only declined recently and we had expected the moderation to be happening earlier.

“The domestic economy is very strong. Consumption demand, private investment activity is very robust. Because of this, we are still confident it's going to be within the range (of economic growth projection).”

Asked if the current monetary policy would be maintained until year-end, she said it was reviewed at each monetary policy meeting. “The environment is very dynamic and monetary policy is a forward-looking policy.”

At its May 11 meeting, Bank Negara has kept its key interest rate at 3%.

Unjuran pertumbuhan ekonomi kekal 5 peratus

BANK Negara Malaysia mengekalkan unjuran pertumbuhan ekonomi bagi tahun ini antara empat hingga lima peratus di sebalik penguncupan dalam angka eksport. Gabenornya, Tan Sri Dr Zeti Akhtar Aziz berkata, pertumbuhan ekonomi negara tahun ini akan terus didorong pelaburan dan perbelanjaan domestik yang disokong oleh kadar faedah yang rendah.

Source from (Berita Harian): http://www.bharian.com.my/bharian/articles/Unjuranpertumbuhanekonomikekal5peratus/Article
Published: Jun 08, 2012

Prestasi didorong pelaburan, perbelanjaan domestik

“Kadar faedah kita adalah sangat menyokong pertumbuhan. Bank Negara sedar risiko daripada krisis kewangan di zon euro kepada ekonomi global dan pertumbuhan sederhana seluruh dunia sudah pun diambil kira ke dalam (penentuan) kadar faedah tempatan.

“(Ekonomi) Malaysia bergantung kepada pertumbuhan domestik,” katanya kepada media selepas membentangkan laporan tahunan Lembaga Perkhidmatan Kewangan Labuan (Labuan FSA) di Kuala Lumpur, semalam.

Beliau ditanya demikian selepas negara melaporkan penguncupan eksport sebanyak 0.1 peratus pada April kepada RM57.74 bilion, penurunan bulan kedua berturut-turut apabila permintaan khususnya dari pasaran tradisi utama di Eropah semakin perlahan ketika krisis hutang di zon euro terus menyelubungi persekitaran antarabangsa.

Pada bulan berkenaan, eksport ke negara Kesatuan Eropah (EU) jatuh 14 peratus, namun permintaan kukuh dari negara serantau membantu menyerap penurunannya.

Bulan lalu Bank Negara melaporkan ekonomi Malaysia berkembang 4.7 peratus dalam tempoh tiga bulan pertama tahun ini, yang kebanyakannya disokong oleh permintaan domestik yang kukuh.

Zeti berkata, Bank Negara menjangkakan kegiatan ekonomi domestik akan meraih momentum lebih kukuh pada separuh kedua 2012, yang kebanyakannya dipacu oleh perbelanjaan swasta.

“Perbelanjaan swasta kekal kukuh, terdapat peluang untuk menaikkan modal dalam pasaran bon, manakala bank pula terus mencatat prestasi baik dengan pinjaman berkembang 12 peratus dan kini terdapat lebihan akaun semasa,” katanya.

Tegasnya, beliau menjangkakan ekonomi serantau adalah lebih berdaya tahan untuk menyerap tekanan daripada zon euro jika krisis hutang semasa menjadi bertambah buruk.

“Namun, kami akan tetap kekal berhati-hati kerana jika keadaan lebih drastik berlaku, maka ekonomi global secara keseluruhannya akan terjejas.

“Perkara ini bukan baru kerana pada 2008 dan 2009, kita melihat ekonomi negara Asia lebih berdaya tahan daripada krisis global. Kebanyakan negara Asia mencatatkan pemulihan lebih pantas daripada kemelesetan itu,” katanya.

Di samping itu, katanya ekonomi Malaysia umumnya pula adalah baik disokong oleh faktor seperti kadar pengangguran kecil, kadar inflasi rendah, baki akaun yang kukuh, rizab mencukupi, sistem kewangan yang maju serta akses berterusan kepada pembiayaan.

Sektor domestik rancak ekonomi - BNM

GABENOR Bank Negara Malaysia (BNM), Tan Sri Dr Zeti Akhtar Aziz berkata, ekonomi Malaysia dijangka terus berdaya tahan bagi separuh kedua tahun ini, didorong keteguhan ekonomi domestik.

Source from (Harian Metro): http://www.hmetro.com.my/myMetro/articles/Sektordomestikrancakekonomi/Article/index_html
Published: Jun 08, 2012

Beliau berkata, keyakinan mengenai pertumbuhan yang diunjurkan itu berdasarkan permintaan domestik dan kegiatan pelaburan swasta yang kukuh. “Suasana perniagaan di negara ini bersifat amat menyokong dengan tahap daya saing, kecekapan dan kemudahan mendapatkan pembiayaan yang berterusan baik selain terdapatnya pasaran teratur untuk mengumpul dana. “Sektor perbankan di negara ini terus teguh dengan keuntungan kukuh. Ini adalah petanda positif bagi ekonomi kita,” katanya kepada wartawan selepas mengumumkan laporan tahunan Lembaga Perkhidmatan Kewangan Labuan (Labuan FSA) 2011 di Kuala Lumpur, semalam.

Beliau yang juga Pengerusi Labuan FSA berkata, BNM tetap mengekalkan unjuran pertumbuhan Keluaran Dalam Negara Kasar (KDNK) antara empat hingga lima peratus tahun ini, walaupun krisis ekonomi di Eropah masih belum pulih.

“BNM sudah mengambil kira impak krisis ekonomi Eropah dalam unjuran KDNK,” katanya.

LIBFC terus positif

LEMBAGA Perkhidmatan Kewangan Labuan (Labuan FSA), badan yang bertanggungjawab untuk mengawal selia bagi menyelaraskan usaha memperkenal dan membangunkan Pusat Kewangan dan Perniagaan Antarabangsa Labuan (LIBFC) mengumumkan pertumbuhan berterusan dalam kegiatan perniagaan utama di pusat itu di sebalik keadaan ekonomi dunia yang mencabar.

Source from (Harian Metro): http://www.hmetro.com.my/myMetro/articles/LIBFCteruspositif/Article/index_html
Published: Jun 08, 2012

Pengerusinya, Tan Sri Dr Zeti Akhtar Aziz berkata, kecemerlangan prestasi itu disokong beberapa aspek antaranya lokasi strategik dan prasarana kewangan yang baik, aktiviti perniagaan serta sektor perkhidmatan kewangan.

“LIBFC terus mencatatkan pertumbuhan positif dalam sektor perbankan, insurans dan insurans semula, kaptif dan pajakan, sekali gus meneruskan momentum pertumbuhan pada 2010,” katanya ketika mengumumkan pelancaran laporan tahunan Labuan FSA di Kuala Lumpur, semalam.

Beliau berkata, sektor perbankan mencatatkan jumlah pinjaman sebanyak RM76.57 bilion pada tahun kewangan 2011, meningkat 24.1 peratus berbanding RM63 bilion tahun sebelumnya.

“Jumlah premium bagi sektor insurans turut mencatat peningkatan sebanyak 33 peratus kepada RM5 bilion berbanding RM3.8 bilion pada 2010, manakala jumlah aset bertambah kepada RM11.3 bilion, meningkat 16.1 peratus berbanding RM9.8 bilion tahun sebelumnya.

“Aset pajakan pula meningkat sebanyak 10.4 peratus kepada RM87 bilion daripada RM79 bilion pada 2010. Bagi aset perbankan Islam pula, jumlahnya bertambah kepada RM4.7 bilion daripada RM4.1 bilion pada tahun sebelumnya,” katanya.

Menurutnya, jumlah pembiayaan oleh perbankan Islam menokok sebanyak 56.8 peratus kepada RM932 juta.

“Sumbangan takaful dan takaful semula meningkat 54.6 peratus kepada RM1.45 bilion dan instrumen Islam tersenarai meningkat 17.8 peratus kepada RM27.2 bilion,” katanya.

Zeti berkata, sektor kewangan dan perniagaan turut mencatatkan 59 syarikat pajakan baru meliputi tujuh syarikat amanah dan 35 yayasan, tahun lalu. Selain itu, katanya, sebanyak 651 syarikat baru diperbadankan dalam LIBFC tahun lalu, peningkatan 8.1 peratus berbanding 2010 sekali gus menjadikan jumlah syarikat beroperasi di pusat berkenaan mencecah 8,655 semuanya.

Mengenai unjuran masa depan, beliau yang juga Gabenor Bank Negara Malaysia berkata, pihak berkuasa bercadang merealisasikan potensi strategik LIBFC bagi menyediakan keperluan perniagaan domestik dan serantau seiring dengan pelan tindakan sektor kewangan.

Labuan IBFC well placed to meet financial requirements of O&G sector

KUALA LUMPUR: Integrated financial services centre Labuan International Business and Financial Centre (Labuan IBFC) is well positioned to provide financial requirements to the oil and gas (O&G) industry, according to Labuan Financial Services Authority (Labuan FSA) chairman Tan Sri Dr Zeti Akhtar Aziz.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/8/business/11439267&sec=business
Published: Jun 08, 2012

“Emerging markets still are experiencing growth and their demand for O&G, the exploration for O&G, new investment in this industry that is continuing, in particular in our part of the world, therefore there is tremendous potential for Labuan IBFC to serve the business and financial requirements of this industry.

“Labuan is very well positioned, having put in place all the areas that this industry would demand,” she said at the launch of Labuan FSA Annual Report 2011. Zeti, who is also Bank Negara governor, said the on-going World Gas Conference 2012 saw some 6,000 participants. “I believe this is an industry where there is continued growth although there is some slowing of growth as a result of the development in Europe and to some extend in the US.”

Since the introduction of the Global Incentives for Trading (GIFT) programme in September 2011, five trading licences have been issued, enabling the Labuan International Trading Commodity (LITC) companies to benefit from incentives under the GIFT programme. The establishment of GIFT augurs well for the overall development of the oil and gas industry in Labuan.

She said the area of focus in respect of support for the development of the O&G industry was in leasing services. “The LITC will become a trading hub with many projects expected to go forward and this is going to be an exciting development for the industry,” she added.

The leasing sector was one of the most vibrant sectors in Labuan, with a strong increase in the number of leasing companies to 227 companies in 2011 and accumulated assets leased of US$27.6bil. The focus of the leasing companies in the highly specialised areas in aviation and oil and gas provides strong support for the growth and development of the oil and gas sector in Labuan.

According to the report, 651 new companies were incorporated in 2011, representing an increase of 8.1% from 2010. Of the total Labuan companies of 8,655, 72% were from the Asia-Pacific and Far East region.

The Labuan banking sector also reported a steady increase in total assets by 13%, amounting to US$38.3bil in 2011. The capital position of Labuan banks remained resilient with the industry's risk weighted capital ratio and core capital ratio at 22.1% and 23% respectively whilst the ratio of gross non-performing loans improved to 1.5% in 2011. Two new banks from Australia and Ghana obtained licences to operate in Labuan, bringing the total number of Labuan banks to 57.

Labuan trust companies continued to improve with an aggregate operating income of US$18.6mil in 2011 from US$15.4mil a year ago. Seven new Labuan trust companies were also established in 2011, of which five were foreign-owned.

Meanwhile, the insurance sector in the Labuan IBFC remained resilient despite various episodes of natural disasters within the region during the year.

There were 22 new licenses issued, bringing the total of Labuan insurance and insurance-related companies to 181 (2010: 169). The sector's total assets increased by 16.1% to US$3.6bil in 2011 from US$3.1bil in 2010. Gross premiums also grew to US$1.57bil in 2011.

Total Islamic assets registered a growth of 15.4% to US$1.5bil (2010: US$1.29bil), reflecting the strong interest in Islamic finance.

Total Islamic bank financing increased significantly to US$294.6mil as at end-2011, with larger demand from non-residents. The takaful and re-takaful sectors also recorded a double-digit growth, with gross contributions improved by 54.6% for the fifth consecutive year, where total gross contributions of the sectors reached US$459.5mil (2010: US$297.3mil).

For the fiscal year ending 31 December 2011, Labuan FSA recorded a 17% increase in its operating income to RM26.9mil from RM23mil in 2010. Total reserves of the authority remained strong at RM25.2mil.

Moving forward, as outlined in the Financial Sector Blueprint, the Labuan FSA will implement plans to realise the strategic potential of Labuan IBFC to serve the needs of domestic and regional businesses.

This will be complemented by continuous strengthening of the regulatory and supervisory framework of Labuan IBFC to meet international standards and best practices and to promote the sustainable growth of Labuan.

In a statement, Labuan IBFC has appointed Saiful Bahari Baharom as chief executive officer. Saiful, who has a degree in Economics and Finance, has previously work at the Finance Ministry where he served as Special Functions Officer to the Minister of Finance II for the last three years.

New Islamic funding facility may lure Gulf banks

SYDNEY: Bank Negara is introducing an Islamic overnight funding facility which could encourage commercial banks from the Gulf to trade more in the country’s syariah-compliant money market.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/7/business/11430276&sec=business
Published: Jun 07, 2012

The collateralised murabahah facility, announced last week, “will add diversity to the existing liquidity management tools and further promotes greater liquidity in the Islamic financial market,” the central bank said.

The new facility would allow Islamic banks to obtain funds from the central bank by pledging high investment grade sukuk as collateral, a Malaysian-based Islamic banker told Reuters by telephone.

Currently, Islamic banks can obtain funds from Bank Negara through a deferred-payment sale agreement, but this structure is not considered permissible by some syariah scholars outside Malaysia so banks from the Gulf have been reluctant to use it.


Currently, Islamic banks can obtain funds from Bank Negara 
through a deferred-payment sale agreement, but this structure 
is not considered permissible by some syariah scholars outside 
Malaysia.

Because it involves murabahah, a common cost-plus financing structure in Islamic finance, as well as collateral, the new facility was likely to be more acceptable to banks from the Gulf, the banker said. It might also be more cost-effective, he added.

Last June, the United Arab Emirates central bank introduced a similar facility to provide liquidity to banks in its own money market: a collateralised murabahah facility in which banks can use Islamic certificates of deposit as collateral.

Al Rajhi Bank, Kuwait Finance House, Bank Alkhair and Elaf Bank are among the Middle Eastern institutions already active in the Malaysian market.

Besides stimulating Malaysia’s Islamic money market activity, the new facility could encourage banks’ investment in sukuk by increasing demand for the use of sukuk as collateral.

The facility was in line with increasing allocations of funds into sukuk by Islamic banks, said Srinivasan Gopalakrishnan, assistant vice-president at Bahrain-based Al Salam Bank. — Reuters

Zeti: BNM monitoring Europe debt crisis

KUALA LUMPUR: Bank Negara Malaysia is monitoring the current development in the Europe and the prospects for moderation in the global economic growth had already been factored in.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/7/business/20120607151530&sec=business
Published: Jun 07, 2012

BNM Governor Tan Sri Zeti Akhtar Aziz said on Thursday that Malaysia had recognised the risks if the European leaders did not come out with a solution to resolve the debt crisis.

She was asked to comment on whether BNM would maintain its GDP growth forecast of between 4% and 5% for this year due to the current debt crisis in the euro zone.

Speaking at a press conference at the release of the Labuan Financial Services Authority (Lofsa) annual report 2011, she said: "Should the solutions come that will resolve many issues that are currently existing, then yes the projections that we have announced remain intact."

Zeti also said if the situation worsens further, then there would be a negative impact on the global economy.

Malaysia's exports in April 2012 dipped slightly to RM57.74bil from the RM57.8bil a year ago, weighed down by slower growth in the major economies and the Europe debt crisis.

Labuan Financial Services Authority's 2011 income at RM26.9m

KUALA LUMPUR: Labuan Financial Services Authority's (LFSA) operating income for fiscal year ended Dec 31, 2011, rose to RM26.9mil from RM23mil in the same period 2010.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/7/business/20120607141756&sec=business
Published: Jun 07, 2012

LFSA is the regulatory body to spearhead and coordinate efforts to promote and develop Labuan International Business and Financial Centre (LIBFC).

Chairman Tan Sri Zeti Akhtar Aziz said supported by its strategic location and financial infrastructure, the business activity and financial service sectors in the LIBFC continued to record positive growth in the banking, insurance and reinsurance, captives and leasing sectors.

"The growth momentum was sustained in 2011 despite the challenging global environment," she told a media briefing on its annual report here on Thursday.

Zeti said the banking sector saw an increase of 24.1 per cent in total loans to US$24.7 billion (US$1 = RM3.16) from US$19.9 billion in 2010 while total assets rose to US$38.3 billion from US$33.9 billion previously.

The insurance sector's total premiums rose by 33 per cent to US$1.6 billion from US$1.2 billion in 2010 and total assets grew by 16.1 per cent to US$3.6 billion from US$3.1 billion.

Leased assets rose by 10.4 per cent to US$27.6 billion from US$25 billion in 2010, she said.

She said total Islamic banking assets went up to US$1.5 billion from US$1.3 billion in 2010.

Total financing by the Islamic banking jumped by 56.8 per cent to US$294.6 million, takaful and retakaful contribution surged by 54.6 per cent to US$459.5 million and listed Islamic instruments rose by 17.8 per cent to US$8.6 billion, she said.

Zeti said two banks, one each from Australia and Ghana, obtained licences to operate in LIBFC while 22 new insurance licences and five trading licences were issued last year.

The business and financial sector also registered 59 new leasing companies, seven trust companies and 35 foundations last year, she said.

"In total, 651 new companies were incorporated in LIBFC last year, representing an increase of 8.1 per cent from 2010, making the total number of companies operating in the business and financial centre to 8,655 companies," she said.

Moving forward, she said, the authority planned to realise the strategic potential of LIBFC to serve the needs of domestic and regional businesses, as outlined in the financial sector blueprint.

Leveraging on Labuan as the oil and gas hub, she said, the LIBFC was expected to also grow in tandem with the industry. "There are tremendous potentials for LIBFC to serve the business and financial requirements of this industry," she said. - Bernama

Saiful Bahari Baharom is Labuan IBFC's new CEO

KUALA LUMPUR: Labuan IBFC Inc. (Labuan IBFC Inc.) said Saiful Bahari Baharom has been appointed as its chief executive officer. Labuan IBFC Inc. is a unit of Labuan Financial Services Authority and it is involved in promoting the jurisdiction as a premier international business and financial centre.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/7/business/20120607142823&sec=business
Published: Jun 07, 2012

It said on Thursday that Saiful, who has a degree in Economics and Finance, had his last posting at the Finance Ministry where he was a special functions officer to the Minister of Finance II for the last three years. Prior to that, he was a special officer to the Minister in the Prime Minister's Department (Economic Planning Unit) and as Director, Strategy and Development Department, Labuan Financial Services Authority.

Saiful Bahari Baharom CEO baharu Labuan IBFC

KUALA LUMPUR - Anak syarikat milik penuh Lembaga Perkhidatan Kewangan Labuan (LFSA), Labuan IBFC Inc, telah melantik Saiful Bahari Baharom sebagai Ketua Pegawai Eksekutifnya (CEO) yang baharu.

Source from (Sinar Online): http://www.sinarharian.com.my/bisnes/saiful-bahari-baharom-ceo-baharu-labuan-ibfc-1.54530
Published: Jun 07, 2012

Dalam satu kenyataan hari ini, Labuan IBFC berkata Saiful Bahari mempunyai ijazah ekonomi dan kewangan dan sebelum ini bekerja sebagai Pegawai Tugas Khas kepada Menteri Kewangan Kedua selama tiga tahun.

"Beliau sebelum ini juga berkhidmat sebagai Pegawai Khas kepada Menteri di Jabatan Perdana Menteri (Unit Perancang Ekonomi) dan Pengarah Jabatan Pembangunan Strategi dan  Pembangunan di LFSA," katanya. - Bernama

Loans growth fell faster in April

KUALA LUMPUR, June 1— Loan applications have fallen in tandem with slower economic growth and following new responsible lending guidelines imposed by Bank Negara, statistics show.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/2/business/11403559&sec=business
Published: Jun 02, 2012

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/loans-growth-fell-faster-in-april/
Published: Jun 02, 2012

Figures released by the central bank show that loan applications grew by 5.8 per cent in April as compared with 14.1 per cent in March and and 47.3 per cent in February.

Loan approvals shrank 11.4 per cent in April as compared with 2.2 per cent in March and a growth of 17.6 per cent in February.

Net financing grew 12. 8 per cent in April, down from 13.3 per cent in March and about the same pace as February.

The net impaired loans ratio crept up slightly to 1.8 per cent from 1.7 per cent in March but was still below the 1.9 per cent recorded in February.

Bank Negara said that net financing to the private sector grew at a slower pace in April due to lower net private debt security (PDS) issuances and a stable rate of increase in outstanding banking system loans.

It said that business loans outstanding increased by 11.7 per cent during the month with a higher amount of loans extended to businesses in the real estate, finance insurance and business services;  manufacturing and wholesale and retail, restaurants and hotels sectors.

The central bank also said that loans extended to households grew at a more moderate pace during  the month but continued to remain high driven  mainly by loans for purchase of residential and non-residential properties and passenger cars.

Gross domestic product (GDP) grew at a slower pace of 4.7 per cent in the first quarter compared with 5.2 per cent in the previous quarter due to challenging global economic conditions.

First-quarter exports contracted the most in nine months, slumping 20.8 per cent compared with the first quarter of last year.

Domestic demand remained robust, however, with growth in the construction sector surging 15.5 per cent in the first quarter, double the rate of the previous quarter.

Malaysia is projected to register economic growth of between 4-5 per cent this year.

Broad money up in April

KUALA LUMPUR: Private sector liquidity, as measured by broad money (M3), grew at a stable annual growth rate of 15% in April on continued credit extension by the banking system, said Bank Negara.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/1/business/11397756&sec=business
Published: Jun 01, 2012

Net financing to the private sector grows at a slower pace

The expansion of M3 was partially mitigated by net foreign outflows during the month, while net financing to the private sector grew at a slower pace in April due to lower net private debt security issuances and the stable rate of increase in outstanding banking system loans, it said.

“Business loans outstanding increased by 11.7% during the month with a higher amount of loans extended to businesses in the real estate, finance insurance and business services, manufacturing and wholesale and retail, restaurants and hotels sectors,” it said.

“While loans extended to households grew at a more moderate pace during the month, it continued to remain high, driven mainly by loans for purchase of residential and non-residential properties and passenger cars,” it added.

Meanwhile, the Consumer Price Index (CPI) moderated to 1.9% in April due to lower inflation in the food and non-alcoholic beverages, recreation services, and culture and transport categories.

“Inflation in the food and non-alcoholic beverages category was lower at 2.3% in April due to a decline in the prices of vegetables and meat following improved supply of food items,” Bank Negara said.

“The recreation services, and culture and transport categories registered lower inflation rates as the impact from the increase in satellite television service charges and the larger price adjustment on RON97 petrol in April 2011 tapered off,” it said.

Bank Negara also said the banking system remained well-capitalised with the risk-weighted capital ratio and core capital ratio at 14.5% and 12.9% respectively.

It said the decline in the capital base was due to a scheduled redemption of subordinated debt capital by a bank.

“The level of net impaired loans remained stable at 1.8% of net loans, while the loan-loss coverage remained above 90%,” it said.

The international reserves of Bank Negara stood at RM417.5bil (equivalent to US$136.1bil) as at May 15 which is sufficient to finance 9.3 months of retained imports and is 4.1 times short-term external debt.