Banking, insurance and capital markets (fund management, investment advisory, financial planning, venture capital and brokerage) are components within the financial services sub-sector. These activities are under the purview of the Central Bank of Malaysia (Bank Negara) for onshore activities, Labuan Financial Services Authority for offshore activities and the Securities Commission Malaysia.
Approved investments in 2021 faced drastic growth at 300% with a total amount of RM12 billion whereby domestic sources contributed RM11.3 billion while foreign investments totalled RM683.7 million. A total of 969 job opportunities were created in this sub-sector during the period.
The direction of the financial system in Malaysia is chartered in the Financial Sector Blueprint with the target to shift the sector to the next level by making it more inclusive and fully integrated with the international financial system. Malaysia is also well-positioned to be the global hub for international Islamic finance, leveraging on our strength and leadership in Islamic finance.
Total Approved Investment
Malaysia’s National Bank (Bank Negara Malaysia or BNM) announced several proactive measures to assist the public and business community in mitigating the impact of the pandemic. These included the deferment and restructuring of loans, along with refinancing options. Through these measures, financial institutions have been able to address the potential deterioration in profitability and asset quality due to the pandemic. BNM is also exploring options to improve the business potential of the nation’s insurance businesses, introducing measures such as de-tariffication of fire and motor insurance business as well as promoting digitisation to enhance customer interaction and improve the operational practices of insurers.
Malaysia continues to assert its position as a global leader in Islamic Finance, demonstrating robust growth that is supported by comprehensive regulatory, legal and Shariah governance frameworks, diverse industry players and professional ancillary service providers as well as high quality talent. This is also acknowledged by the World Bank in its 2020 report on “Malaysia’s Domestic Bond Market: A Success Story by the World Bank’s Inclusive Growth and Sustainable Finance Hub in Malaysia”.