Building a Country, Empowering a Nation
BPMB’s Renewed Commitment to a New Malaysia
SUNDAY, 22 December 2018
In its 45 years of carrying out a nationally entrusted mandate, Bank Pembangunan Malaysia Berhad or BPMB, Malaysia’s first Development Financial Institution has through the years contributed substantially to the perpetuation of progress in Malaysia. It has until today remained a key financial instrument for infrastructural development all over the country, played a vital role in the expansion of oil and gas, driven maritime ventures and supported many technology-based endeavors.
Through the years BPMB’s existence has had a positive socio-economic impact on the country. It has indirectly provided larger job pools, modern infrastructural benefits and a more vigorous economic disposition for small to large business enterprises. Founded on strong credit ratings, BPMB has been key in Malaysia’s on-going development agenda. To date, BPMB has completed more than 15 notable projects of national importance in the value of RM30 billion.
BPMB's TRANSFORMATION AGENDA
Evolving market forces have compelled BPMB to be more adaptive in fronting new economic circumstances. This has resulted in a more focused reaction to a currently more demanding economic climate. The present BPMB business model includes a larger array of tech-based industries in an era that beckons a more profound involvement in the digital field.
BPMB’s transformation process emphasizes on the company’s ability to not only weather economic fluctuations but also successfully thrive within it. This is to conform to the ever-changing needs and wants of its existing and future client base.
As a leading Development Financial Institution in Malaysia, BPMB is committed to channel its experience and offerings to further impact the development of this nation.
Although bearing higher risks compared to commercial financial institutions, BPMB’s role in building a stronger Malaysia will not waiver. In this context, profitability and returns are not a primary focus as much as the role it plays to bankroll continued development. This implies that BPMB is willing to act altruistically in order to finance what others deem ‘too high-risk’ for the sake of national growth.
Its current operational framework does not only consider BPMB’s impact in the economic development of the country but also the viability of its actions and the contributions it has to society at large.
2019 : NEW GROWTH AREAS
"Our mandate has expanded and it is only natural what follows is larger responsibilities, stronger efforts and better results” said Afidah Mohd Ghazali, Acting President & Group Chief Executive Officer of BPMB. She explained that there would be 3 new funds added to BPMB’s existing portfolio that were announced at the recently tabled Budget 2019. The Industry Digitalization Transformation Fund of RM3 billion with a subsidized 2% interest rate is meant to accelerate the adoption of smart technology which includes automation, robotics and artificial intelligence that have been identified as future boom sectors that can provide sustainable revenue for the nation if keenly handled.
The Sustainable Development Fund with a RM 1billion allocation is key in ensuring that future developments are carried out with minimal depletion of natural resources via ecologically friendly methods. This is in tandem with ‘Agenda 2030’ for Sustainable Development as well as the 17 Sustainable Development Goals (SDG) under the United Nations Development Program.
The third participating fund in BPMB’s new line-up is the Public Transport Fund with an allocation of RM500 million. This is meant to provide subsidies for public transport operators including taxi and bus companies in line with the Government’s agenda to expand public transportation network to cover more areas and benefit more lives. “Let me assure you that BPMB’s fundamentals are strong. We will remain strong and focused, in order to fulfill our nation building role and deliver on our expanded mandate,” she added.
These new funds combined with what BPMB already offers is a definite step in the right direction by the current Government in ensuring that all key sectors are given equal emphasis in order to have a more balanced growth for Malaysia. “To drive the new funds, the Bank has appointed Ahmad Mochtar Hashim, as the new Chief Business Officer. He has over 15 years of experience at BPMB and was responsible for growing BPMB’s past special funds and PFI financing scheme,” said Afidah.