Our Business Activities

We Provide Financial Intermediaries (Depository) Services

We provide Financial Intermediaries (Depository) services and participating in the capital economic of the nations by promoting the flow of Foreign Direct Investment (FDI) into this region.

We are also a registered company with the Central Bank of Malaysia (BNM) and free to undertake any type of FDI in Malaysia without any restriction and limitation. It is also free to receive an investment funds in the form of equity injections from the non-residents.

A financial intermediary refers to an institution that acts as a middleman between two parties in order to facilitate a financial transaction. The institutions that are commonly referred to as financial intermediaries include commercial banks, investment banks, mutual funds, and pension funds. They reallocate uninvested capital to productive sectors of the economy through debts and equity.

Bank
Credit Union
Mutual Funds
Financial Advisors

Empowering Finance Leaders of Tomorrow

Financial Intermediaries

A financial intermediary refers to an institution that acts as a middleman between two parties in order to facilitate a financial transaction. The institutions that are commonly referred to as financial intermediaries include commercial banks, investment banks, mutual funds, and pension funds. They reallocate uninvested capital to productive sectors of the economy through debts and equity...Read more.

Financial intermediaries offer the following advantages:

Spreading risk - Financial intermediaries provide a platform where individuals with surplus cash can spread their risk by lending to several people rather than to only one individual. Lending to just one person comes with a higher level of risk. Depositing surplus funds with a financial intermediary allows institutions to lend to various screened borrowers. This reduces the risk of loss through default. The same risk reduction model applies to insurance companies. They collect premiums from clients and provide policy benefits if clients are affected by unforeseeable events like accidents, death, and disease.

Economies of scale - Financial intermediaries enjoy economies of scale since they can take deposits from a large number of customers and lend money to multiple borrowers. The practice helps to reduce the overall operating costs that they incur in their normal business routines. Unlike borrowing from individuals with inadequate funds to loan the requested amount, financial institutions can often access large amounts of liquid cash that they can loan to individuals with a strong credit rating.

Economies of scope - Intermediaries often offer a range of specialized services to clients. This enables them to enhance their products to cater to the requirements of different types of clients. For example, when commercial banks are lending out money, they can customize the loan packages to suit small and large borrowers. Small and medium enterprises often make up the bulk of borrowers. Preparing packages that suit their needs can help banks grow their customer base. Similarly, insurance companies enjoy economies of scope in offering insurance packages. It allows them to enhance their products and services to satisfy the needs of a specific category of customers such as people suffering from chronic illnesses or senior citizens...Read more.

Foreign Direct Investment:
Key to Poverty Reduction in Malaysia....

Malaysia’s rapid economic growth has given rise to the realization of distributional objectives for achieving its ultimate goal of national unity. Reducing poverty and income disparities among races, income groups and regions is continuously emphasized by the Government of Malaysia in the country’s series of national development plans. This paper concentrates on the significance of Foreign Direct Investment (FDI) in poverty reduction across the states of Malaysia...Read more.

Economics & Finance

Making the Most of FDI

When it comes to converting foreign direct investment into income growth and technological upgrading, Shenzhen, China, has been far more successful than Penang, Malaysia. The reason is simple: Shenzhen, unlike Penang, supported the rise of innovative local businesses...

Foreign direct investment (FDI) has proved to be resilient during financial crises. For instance, in East Asian countries, such investment was remarkably stable during the global financial crises of 1997-98. In sharp contrast, other forms of private capital flows—portfolio equity and debt flows, and particularly short-term flows—were subject to large reversals during the same period (see Dadush, Dasgupta, and Ratha, 2000; and Lipsey, 2001). The resilience of FDI during financial crises was also evident during the Mexican crisis of 1994-95 and the Latin American debt crisis of the 1980s...Read more.

Source: https://www.imf.org/external/

Foreign Direct Investment for Development (Maximising Benefits, Minimising Costs): Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. Yet, the benefits of FDI do not accrue automatically and evenly across countries, sectors and local communities. National policies and the international...Read more.

Source: www.oecd.org/investment

Flows of foreign direct investment (FDI) are increasingly being seen as a very important channel for the transfer of technology, capital and entrepreneurship. Developing countries compete vigorously among themselves to attract greater volumes of FDI with a variety of policy instruments...Read more.

Source: www.researchgate.net/

FDI into Africa from
GCC hits new heights

Greenfield foreign direct investment (FDI) announcements by Middle Eastern investors in Africa have boomed in recent years, due to ambitious plans to produce renewable energy like green hydrogen and develop infrastructure such as ports, warehouses and data centres...

Let foreign investments boost the Philippines

MANY problems keep the ordinary Filipino up at night. A recent Pulse Asia survey commissioned by the Stratbase Institute said seven in 10 Filipinos are deeply concerned with the escalating inflation crisis. This concern is first on the list of respondents’ urgent national concerns. Worse, 74% of respondents believe that the current administration’s response to this concern is inadequate...

The Marcos administration is hiking its borrowing plan for this year to 2.57 trillion pesos, as it also expects to plug a bigger budget deficit than it previously projected...

Retrenchments in Singapore fell for the second straight quarter while the hiring outlook improved, according to preliminary first-quarter labour market data from by the Manpower Ministry (MoM)...

The operator of Bangkok’s two main airports plans to spend about $4.8 billion to more than double capacity by the end of the decade to cope with a surge in post-pandemic tourism...

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Foreign Direct Investment:
Read more...

FDI Definition: A foreign direct investment refers to a purchase of a particular organisation’s interest by another foreign organisation. Such an organisation or investor is located in a different country than the organisation whose interest is purchased. It involves a business decision whereby a significant stake is acquired in a foreign business. Generally, organisations undertake FDI to expand operations to a foreign location...

Foreign direct investment (FDI) is the prevalent mode of corporate governance to gain control over productive assets abroad. Control is achieved through the transfer of property rights to the foreign firm. Through FDI, companies can exploit their internal (so-called ownership-specific) advantages through combining them with location-specific advantages abroad, for example, market opportunities, resources, and local value chains...

According to the IMF and OECD definitions, direct investment reflects the aim of obtaining a lasting interest by a resident entity of one economy (direct investor) in an enterprise that is resident in another economy (the direct investment enterprise). The “lasting interest” implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence on the management of the latter...