Malaysia Development Bank: A Catalyst for Nation Building

Malaysia Development Bank is a key player in the country's nation-building efforts. Established in 2015, the bank's primary goal is to promote economic growth and development in Malaysia.

The bank's focus on promoting economic growth is evident in its initiatives to support small and medium-sized enterprises (SMEs). By providing financing and other forms of assistance, the bank aims to help these businesses grow and contribute to the country's overall economic development.

One of the bank's notable achievements is its efforts to increase access to finance for marginalized communities. By providing microfinance services and other forms of assistance, the bank has helped to improve the socio-economic conditions of these communities.

The bank's commitment to nation-building is also reflected in its initiatives to support the development of rural areas. By investing in infrastructure and providing financial assistance to rural businesses, the bank has helped to promote economic growth and development in these areas.

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In 2019, BPMB embarked on a 3-Year Strategic Transformation Plan (2020-2022) to support Malaysia's emerging development needs and create meaningful and sustainable impact.

The plan was commissioned by the Malaysian government to provide long-term forecasts for strategic priority areas.

BPMB was previously unable to provide forecasts beyond one year, relying on an external consultant (Moody's Analytics) based in India. This led to inconsistent and potentially inaccurate data.

The lack of internal control and scenario testing resulted in undermined confidence in the planning process among stakeholders.

Criticism mounted as BPMB, owned by the Malaysian Government through the Minister of Finance Inc., was unable to provide long-term forecasts independently.

To address these issues, BPMB recognized the need for the right tools to support informed decision-making, especially with future plans to acquire SMEs and smaller banks.

BPMB was able to save cost and prevent unnecessary expenditures by requesting ad-hoc figures and forecasts from Moody's, which weren't entirely useful or accurate.

A discovery session was held between a business development manager from the Singapore team and a senior economist from BPMB to learn more about the business and their needs.

The client was able to engage the services after a week-long trial, and they were astonished at the seamless process of purchasing the services.

Within 4 months of using the services, the research team presented their initial forecast and findings using the global economic model, and received positive feedback from stakeholders.

The stakeholders were impressed with the justification of the forecasts aided by the model, which made a significant difference in their decision-making process.

Here's a summary of the key benefits achieved by BPMB:

Malaysia Development Bank (MDB) has partnered with various financial institutions to strengthen its position in the market.

The bank has collaborated with Bumiputera-Perbadanan Usahawan Nasional Bhd (BPMB) to provide financing options to Bumiputera entrepreneurs.

This partnership allows BPMB to leverage MDB's expertise and resources to support the growth of Bumiputera businesses.

The collaboration aims to increase access to finance for Bumiputera entrepreneurs and promote economic growth in Malaysia.

MDB has also partnered with other financial institutions to provide a range of financial products and services to its customers.

These partnerships have enabled MDB to expand its reach and offer more competitive products to its customers.

The bank's partnerships have helped to increase its customer base and improve its financial performance.

Bank Pembangunan Malaysia Berhad (BPMB) is committed to providing medium to long-term financing to capital-intensive industries, including infrastructure projects, maritime and high technology sectors.

Established in 1973, BPMB has been assisting entrepreneurs involved in small and medium-sized industries through various financing facilities, training, and advisory services.

The bank's asset is estimated to be RM 26.6 billion, demonstrating its significant impact on the Malaysian economy.

BPMB has formed a strategic partnership with Funding Societies, a Southeast Asian SME digital finance platform, to improve financing options for small and medium-sized enterprises (SMEs) in Malaysia.

The partnership aims to help SMEs that face difficulties in securing traditional funding, and BPMB is committing RM10 million to Funding Societies to support businesses in sectors like technology, infrastructure, and manufacturing.

This initiative complements BPMB's services provided through Pembangunan Leasing Corporation, further solidifying its commitment to supporting the growth of Malaysia's strategic economic sector.

BPMB's commitment to supporting SMEs is a testament to its understanding of the crucial role they play in fuelling economic growth.

Bank Pembangunan's commitment to supporting SMEs includes:

By bridging the funding gap and promoting financial inclusion, BPMB empowers SMEs to thrive and contribute to the nation's economy.