KL to amend foreign bank laws

KL to amend foreign bank laws

KUALA LUMPUR (AFP): Malaysia Saturday announced it was
amending the laws so as to allow foreign-owned financial
institutions to operate in the country, a move that was
immediately welcomed by China.

Malaysia's Deputy Finance Minister Wong See Wah said the
institutions would have to get written approvals from the Finance
Minister under the proposed changes to the Banking and Financial
Institutions Act, 1989.

"The amendments have been approved by cabinet last week and
will be presented at the current parliament session," Wong was
quoted by Bernama news agency as saying. However, he did not give
details of the amendments.

Wong was speaking to reporters after witnessing the signing of
an agreement between Malaysia's Hai-O Enterprise Bhd. and China's
Hi-Tech Industries Import and Export Corp. to set up a joint-
venture company.

China's Economic and Trade Counselor in Kuala Lumpur, Zhu
Xiachuan, who was present at the ceremony, described the move to
allow foreign banks to operate in Malaysia as positive.

"We appreciate this quick action by the government as this
will enable the Bank of China to open its branch here fast," Zhu
said.

Malaysia's top bank, Malaysian Banking Bhd. as well as Public
Bank Bhd. have representative offices in China.

The Banking and Financial Institutions Act, 1989 -- which
replaced the Banking Act 1973 and the Finance Companies Act 1969
-- had required all branches of foreign financial institutions to
be locally incorporated within five years after it came into
effect.