Financial Services

The financial services sector is an integral component of the Malaysian economy, and it is becoming increasingly important.

Liberalisation measures, like the issuance of new licenses to banks and a considerable increase in foreign equity limits in some sub sectors, are to be implemented over the period 2009 to 2012, making this a particularly interesting period for foreign investors. Even though the Malaysian banking sector has weathered the global financial crisis very well, it is in need of improving its efficiency, with monetary transactions still taking up to three working days.

In terms of SME banking and customer friendly products, Europe is far ahead and Malaysia could greatly benefit from European know-how. The same holds true for the insurance sector, which is still very limited in the country, and where the transfer of European expertise is urgent. Europe, on the other hand, could benefit from closer cooperation in the sector of Islamic Banking, where Malaysia is among the world leaders.

At the moment, there is no real discussion forum that addresses these issues in the area of Financial Services. The project's objective will therefore be to engage in an ongoing discussion with the various stakeholders, in order to facilitate technology and knowledge transfer in the banking and insurance sectors, for the benefit of all involved.