17 June 2021
On 27 May 2021, Bank Negara Malaysia (“BNM”) issued the Corporate Strategic Plan (“CSP”) policy document, applicable to all development financial institutions (“DFIs”) prescribed under the Development Financial Institutions Act 2002.
The CSP consolidates the Guidelines on the Statement of Corporate Intent and Annual Funding Requirement which were introduced in 2002 as part of the regulatory requirement to ensure that the financial and operational affairs of a DFI are conducted with greater accountability and transparency.
The aim is for the CSP to serve as a comprehensive framework for a DFI to develop robust and forward-looking corporate strategies to achieve greater developmental outcomes, consistent with the economic agenda driven by the Government of Malaysia. The CSP policy document sets out:
• requirements on the board of directors and senior management to provide the strategic direction, oversight and ensure the effective implementation of the CSP;
• key features of the CSP which include the enhanced SCI and AFR; and
• Implementation Guide on Performance Measurement Framework for Prescribed DFIs.
The CSP also sets an expectation on DFIs to measure the effectiveness and efficiency of discharging their mandates and creating additionalities through an enhanced performance measurement framework.
The Performance Measurement Framework — Implementation Guide, also issued by BNM on 27 May 2021, is available at https://tinyurl.com/sxt3snrs.
The CSP is available at: https://tinyurl.com/937ecwp8.
For further information, please contact:
Christina S.C. Kow, Partner, Shearn Delamore & Co
christina@shearndelamore.com
