KUALA LUMPUR, July 27 - Bank Negara Malaysia (BNM) has set a more comprehensive framework to assess the performance of development financial institutions (DFIs) beginning in 2027.
The Finance Ministry (MOF) said that the central bank has issued the Performance Measurement Framework (PMF) policy document, which will take effect from July 1, 2027.
The PMF will provide a more structured framework to strengthen the implementation of the development mandate by DFIs.
“Under the PMF, the performance of DFIs will be evaluated more comprehensively based on the achievement of the development mandate, the development impact created for the targeted sectors and segments, the development additionality generated compared with commercial financing, and the level of governance, accountability, and operational efficiency,” it said in a written reply to the Dewan Negara, which was posted on the Parliament’s website today.
The MOF was replying to Senator Robert Lau Hui Yew regarding the government’s assessment of the effectiveness of DFIs in achieving their respective policy objectives.
He had also asked whether there is any overlap in mandates, financing programmes, and target customer segments among the institutions, and whether the government plans to rationalise or consolidate any of these institutions to enhance efficiency and reduce duplication of functions.
Malaysia currently has six DFIs operating under the Development Financial Institutions Act 2002, including Bank Rakyat, Bank Pembangunan Malaysia Bhd, Agrobank, Bank Simpanan Nasional, EXIM Bank, and SME Bank.
In 2025, cumulative financing from DFIs rose to RM193.9 billion, with financing approvals for 1.8 million accounts covering target sectors such as infrastructure, agriculture, small and medium enterprises (including micro enterprises), and segments with limited access to commercial financing.
