Bank Pembangunan Completes Acquisition of EXIM and SME Banks

Bank Pembangunan Malaysia Bhd (BPMB) has successfully completed the acquisition of the Export-Import Bank of Malaysia (EXIM Bank) and Small Medium Enterprise Development Bank Malaysia (SME Bank) from the Minister of Finance (Incorporated). This transaction, based on the net tangible assets of the acquired banks as of December 31, 2023, aims to form a unified entity that enhances the delivery of impact capital through a cohesive developmental financing ecosystem. It aligns with several national policies, including the Malaysia Madani Economic Framework and the Bumiputera Economic Transformation Plan 2035. With a combined workforce of over 2,000, BPMB plans to maintain its complete workforce, recognizing their pivotal role in national development efforts. Post-acquisition, BPMB aims to leverage the strengths and resources of the three banks to address Malaysia’s developmental funding gap, particularly by supporting Bumiputera entrepreneurs, financing SMEs, fostering cross-border transactions, and advocating sustainability-focused growth. Collectively, the group has allocated RM8.3 billion for strategic national development programs this year. The merger is anticipated to produce revenue and cost synergies by integrating the banks' resources and expertise, and a holistic integration plan is in place to effectively cater to different market segments.