Sign up | Log in



Home  >>   Daily News  >>   Malaysia  News  >>   Finance  >>   More finance liberalization in Malaysia
NEWS UPDATES Asean Affairs        26  March 2011

More finance liberalization in Malaysia

Related Stories

March 5,2011
Higher foreign stake in Malaysian banks 

February 9,2011

Malaysia bond market strong

February 3,2011
Malaysia ringgit unlikely to return to Pre-1997 Level

January 24, 2011
Malaysia and Islamic finance challenges

January 22,2011
Malaysia state bank to comment on outflow

January 17,2011
Malaysian ringgit may test 2.80 Level

December 27,2010
Malaysian banks warned against risks

More liberalisation measures, particularly in increasing financial linkages and encouraging foreign banks to increase their network in Malaysia, are some of the developments that are likely to take place in Malaysia's financial sector.

Recently, Bank Negara gave some hints on the new financial sector blueprint, which will be announced soon.

The focus of the new master plan will be enhancing the capacity and capability of the Malaysian financial sector to serve the needs of a high value-added and high-income economy; reinforcing Malaysia's position as a global hub for Islamic financial services; supporting the holistic review of the pension and social security system given the demographic and social trends in Malaysia; and deepening Malaysia's interlinkages with regional and international economies by facilitating further growth of cross-border financial transactions.

Bank Negara is confident that banking institutions in Malaysia will be able to transition into Basel III from a position of strength owing to the extensive reform initiatives undertaken by the central bank and the industry following the Asian financial crisis.

The Basel Committee on Banking Supervision endorsed a package of reforms to strengthen global capital standards and introduced global standards for liquidity known as Basel III in September 2010. As the market has witnessed, Malaysia's inter-linkages with the region have started to show progress.

For instance, the Industrial and Commercial Bank of China had begun the renminbi foreign exchange market direct trade in ringgit.

This was to facilitate cross-border business transactions in prevailing exchange rates without involving the US dollar as an intermediary currency, thus saving time and foreign exchange conversion costs.

Datuk Lee Kok Kwan, the Deputy CEO and treasurer of CIMB Group, expects to see more liberalisation in the region. These liberalisations will focus on better facilitating real trade flows of imports and exports in the region as well as to better enable cross-border investments and corporate issuances within the region.

Lee said this would especially be apparent in the Asean+3 countries. The three include China, South Korea and Japan.

"These developments will likely encompass the proliferation of foreign exchange products to better facilitate intra-regional real trade flows so that customers have a wider and more effective range of forex hedging solutions in the regional currencies," Lee said.

"On the capital markets front, the developments will likely focus on enabling cross-border investments and corporate issuances within the Asean+3 region. Currently, Asean+3 seldom invests in the region beyond its own domestic markets relying on global funds to do so despite the region being highly attractive to global markets due to its sound economic fundamentals, high FX reserves and high growth economies."

Meanwhile, HwangDBS Vickers banking analyst Lim Sue Lin expects to see more incumbent foreign banks increasing their number of branches.

She also expects to see more strategic alliances between local and foreign banks, rather than an outright acquisition of a local bank by a foreign bank.

On the banking sector as a whole, CIMB banking analyst Winson Ng is positive on Malaysia's banking sector and expects to see healthy earnings growth in 2011.

"Our positive outlook for banks is reflected in our projection of healthy net earnings growth of 15.3 percent for 2011, which is underpinned by the expected 11 percent expansion of net and non-interest income and a 4.2 percent slide in loan-loss provisioning," he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    26  March 2011 Subsribe Now !
 • Cambodian-Korean trade increases
Subcribe: Asean Affairs Global Magazine
• Indo airport operator hopes to list on stock exchange Asean Affairs Premium
• Indonesia to protect industries from Chinese goods

• More finance liberalization in Malaysia

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• RH bill debate rages in Philippines

• Philippine company spans globe for geothermal projects

• Asia-Pacific fuels air engine growth

• Vietnam trade deficit with China surges
Asean Analysis    27   March 2011 Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events
Asean Stock Watch    25  March 2011
• ASEAN to Consolidate
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand