Bank Negara Malaysia wishes to announce that following the enactment of the Development Financial Institutions Act 2002 (the Act) which came into force effective 15 February 2002, Bank Negara Malaysia is entrusted to administer the Act. The Act aims to provide a comprehensive and effective regulatory framework for development financial institutions (DFIs). The new supervisory and regulatory framework will emphasize on the efficient and sound functioning of the DFIs through specific prudential requirements for assets and liability management, comprehensive supervision, disclosure standards, qualified and skilled management, and good corporate governance. The Act takes into account the different and unique functions of each DFI by allowing flexible application of the Act on the respective DFI and their activities.

At the first phase of its implementation, six DFIs namely:

• Bank Pembangunan dan Infrastruktur Malaysia Berhad
• Bank Industri dan Teknologi Malaysia Berhad
• Malaysia Export Credit Insurance Berhad
• Export-Import Bank of Malaysia Berhad
• Bank Kerjasama Rakyat Malaysia Berhad and
• Bank Simpanan Nasional

have been placed under the purview of the Act.

The above six institutions were set up and largely funded by the Government to promote identified priority sectors of the economy and to achieve social goals of the nation. The institutions play an important role in their respective areas by providing specialized financial services to complement banking institutions which will continue to provide financial services to these sectors.

As envisaged in the Financial Sector Master Plan, the DFIs are expected to play an important role in the development of the identified growth sectors as have been identified in the 3rd Outline Perspective Plan (OPP3) and the 8th Malaysia Plan (RMK8). The formulation of the Act and the placement of the above six DFIs under Bank Negara Malaysia's purview are part of the efforts to ensure that the above six DFIs continue to remain relevant, effective and efficient in meeting the strategic development of the nation.