KL banks have new scheme

KL banks have new scheme

KUALA LUMPUR (AFP): Malaysia's top six banks said yesterday they have established a scheme to finance indigenous Malay businesses and complement government efforts to develop Malay entrepreneurs.

Malayan Banking, Bank Bumiputra, Public Bank, United Malayan Banking Corporation, DCB Bank and Bank of Commerce will set aside 210 million ringgit (US$84 million) for the scheme. Four of the six are listed on the local bourse.

They said in a joint statement that the allocation could be increased if the need arose or with the participation of more banks in the consortium, with the possible inclusion of Arab Malaysian Merchant Bank Bhd and Bank Utama.

The scheme will go towards equity financing of share acquisition by indigenous Malay or bumiputra companies in non- bumiputra firms.

It will also finance joint ventures between bumiputra- and non-bumiputra firms in development projects in selected industries like provision of infrastructure, electrical power and manufacturing.