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THE MALAYSIAN RESERVE - Bank Pembangunan to disburse up to RM4.5b loans in 2018
TUESDAY, 16 January 2018

Bank Pembangunan Malaysia Berhad (BPMB) is aiming to disburse up to RM4.5 billion in lonas in 2018, up from abount RM4 billion last year.

President / Group CEO Shaharuddin Zainuddin said a big chunk of the loans would be allocated to the infrastructure segment, even though the bank is looking at rebalancing its portfolio to the other three mandated sectors. The bank is mandated to provide financing to the infrastructure, oil and gas (O&G), maritime and technology sectors.
“Malaysia has massive infrastructure needs, at least for the next 15 to 20 years, so we are looking at devoting much more of our loan book towards Sabah, Sarawak and various economic corridor projects such as in Peninsular Malaysia,” he said after launching the BPMB x the National Transformation 2050 (TN50): Workplace of the Future initiative, along with Youth and Sports Minister Khairy Jamaluddin, in Kuala Lumpur yesterday.
Shaharuddin said currently, BPMB allocates around 70% of the loans to the infrastructure segment, followed by the O&G segment (10%-15%) and the remaining to the technology and maritime segments.
‘We are also looking at financing projects such as the mass rapid transit and Pan-Borneo Highway in Sabah as well,” he said.
Despite noting that financing for the Pan-Borneo Highway, for instance, could be provided by commercial banks, he said small contractors, such as those that required financing for tractors, lorries and various equipment, still found it difficult to secure loans. ‘This is the area that we can come in and support the economy.”
Apart from the infrastructure sector, Shaharuddin said there is also strong financing demand from the O&G and maritime sectors, as well as the technology sector such as solar and alternative energy projects.
‘So this year, we are looking at rebalancing our portfolio towards the other three mandated sectors,” he added.

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