...The Malaysian Financial System CCP-FSPC 1-1 Chapter 1 – The Malaysian Financial System Content Outline 1. The Banking System ............................................................................. 1-2 2. The Functions and Responsibilities of Monetary and Non-Monetary Institutions ............................................................................................. 1-6 3. The Functions and Responsibilities of Non-Bank Financial Intermediaries...................................................................................... 1-16 4. Other Institutions / Bodies.................................................................. 1-30 5. Summary and Conclusion .................................................................. 1-34 Practice Questions ...................................................................................... 1-35 Learning Objectives What you should achieve after completing this chapter: • Understand the importance of the Malaysian financial system; • Be able to apply the relevant statutory and regulatory provisions governing the Malaysian banking system; • Appreciate the functions and responsibilities of monetary and non-monetary institutions, together with non-bank financial intermediaries; • Gain knowledge of the role of Bank Negara Malaysia; and • Understand the scope of the regulatory framework within the Malaysian financial system. © Institut Bank-Bank Malaysia 1-2 CCP-FSPC The Malaysian Financial System 1...
Words: 11026 - Pages: 45
...DETERMINANTS OF CEO COMPENSATION: EVIDENCE FROM MALAYSIAN BANKING INDUSTRY CHONG KOK CHIEK (AC082799) MUHAMMAD AZWAN BIN MOHD ARIFFIN (AC082868) SITI SUHANNA BINTI ABDUL GHANI (AC083010) BACHELOR OF ACCOUNTING (HONS.) COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING UNIVERSITI TENAGA NASIONAL 2012 DECLARATION We hereby declare that this project is our original work except for quotations and citations which have been duly acknowledged and that it has not been previously and/or concurrently submitted for any other degree at Universiti Tenaga Nasional and/or other institutions. CHONG KOK CHIEK AC 082799 MUHAMMAD AZWAN MOHD ARIFFIN AC 082868 SITI SUHANNA ABDUL GHANI AC 083010 Date of submission: 13th August 2012 i ACKNOWLEGDEMENT We would like to express our sincere gratitude to our project supervisor, Mr. Wan Mohammad Taufik bin Wan Abdullah, lecturer of Department of Accounting of Universiti Tenaga Nasional, for his valuable advices and continuous guidance throughout the research process. Mr. Taufik spent a lot of time enlightening us on various issues, giving us a comprehensive view in the academic aspect via our meetings within his busy working schedule. It is our pleasure to have him as our project supervisor. Without his unconditional support and care, our project could not be finished effectively. He let us try different approaches with confidence in the process, assisting us to solve a lot of problems especially at the time when we did...
Words: 15228 - Pages: 61
...solutions through its Consumer Banking, Business Banking, Islamic Banking, Investment Banking and Stockbroking businesses. They provide a full range of business banking solutions and services for SMEs, Commercial and Corporate companies. Their aim is to be the preferred 1st bank for small businesses and provide support for them during their initial years continuing all the way until they become large Corporate companies. Alliance Bank strongly focuses on the development of personalized, long-term relationships with their customers, delivering competitive suite of products and services as well as offering advisory at each stage of their customer’s business life-stage. They have established an extensive network of Alliance Business Centre’s across the country to reach out and serve all customers better and they continue to expand these facilities in an effort to fully satisfy the needs of their customers. (Reference Alliance bank website) The following report is a marketing plan for ‘Alliance BizSmart Online Banking’, which is one of the services offered specifically to the business market. Objective Few steps are as critical in marketing planning as setting objectives. Objectives are designed to ensure the organisation knows what its strategies are expected to achieve and when a strategy has achieved its purpose. (Refrbuildingmrkpln) The main objective of this marketing plan is to increase the number of Alliance BizSmart Online Banking service users up to 30% while...
Words: 1134 - Pages: 5
...In Malaysia, family takaful is larger, but general takaful is gaining traction. Family takaful business In general, a family takaful plan is a long term policy for which most participant aim at saving for their long-term needs. It carried out the objectives which is: to save regularly over a fixed period of time; to earn investment returns in accordance with Islamic principles; and to obtain coverage in the event of death prior to maturity from a mutual aid scheme. For instance of covers available under family takaful business are: children’s education, health or medical takaful and pension and compensation for dependants in the event of death, disability, amongst others. Family takaful business has its benefits. For examples, the policy can be terminated at any time. Besides, the participants of family takaful business can select the maturity date and there is also exists some flexibility to change the premium paid. General takaful...
Words: 1059 - Pages: 5
...Corporate Governance in Malaysia Kamini Singam Recommended Citation Singam, Kamini (2003) "Corporate Governance in Malaysia," Bond Law Review: Vol. 15: Iss. 1, Article 13. Available at: http://epublications.bond.edu.au/blr/vol15/iss1/13 This Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Bond Law Review by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Governance in Malaysia Abstract This article examines the corporate governance system in Malaysia. A sound corporate governance system should help create an environment conducive to the efficient and sustainable growth in the Malaysian corporate sector. Since the Southeast Asian financial crisis in 1997 – 98 (‘financial crisis’), corporate governance has become a key policy issue confronting many Southeast Asian countries, including Malaysia. This article considers the distinctive problems of corporate governance in Malaysia, despite several steps for reform that have taken place since the financial crisis. There will be a brief discussion on the meaning of corporate governance and an overview of the present status of corporate governance in Malaysia, in particular after the financial crisis. Keywords corporate governance, Malaysia, Southeast Asian financial crisis This article is available in Bond Law Review: http://epublications.bond.edu.au/blr/vol15/iss1/13 ...
Words: 13068 - Pages: 53
...1.0 Introduction All human activities are subject to risk of loss from unforeseen events. To alleviate this burden to individuals, what we now call insurance has existed since at least 215 BC. This concept has been practiced in various forms for over 1400 years. In Islam, the concept of insurance is takaful. Q finance dictionary defines that takaful is a Islamic insurance in which all participants are members and contribute to a pool of funds that provide assistance in the event of loss on the part of any of the participants. It is an Islamic insurance arrangement avoids the prohibitions against gambling and interest in Islamic Law. Takaful, it originates from the Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee". It is based on the principles of ta’awan (mutual cooperation) and Tabarru’ (donation), where a group of takaful participants (policy-holders) agree between themselves to share the risk of a potential loss to any of them, by making a donation of all or a part of their takaful contribution (premium) to compensate for a loss. Takaful-branded insurance is based on Shariah, Islamic religious law and refer the principle of cooperation, not sale or exchange, and mitigates the objectionable aspects of gharar (uncertainty), maisir (gambling) and riba (interest). In conventional insurance the risk is transferred from the policyholder to the insurance company which brings the elements of uncertainty and chance in contract as one of the two a party...
Words: 9476 - Pages: 38
...Class Honours in Mathematics from the University of Adelaide and a Master of Science and Ph.D. in Mathematics and (Honorary) Doctor of Science from the Australian National University. Age 69. | | | | | | | | | | Mr Bobby Chin | | | | Mr Chin was first appointed to the Board on 1 October 2005 and last re-elected as a Director on 17 April 2009. He is presently the Chairman of Singapore Totalisator Board and a member of the Council of Presidential Advisers of the Republic of Singapore, and serves on the board of several companies, including Neptune Orient Lines Ltd and Sembcorp Industries Ltd. He also serves as a Board Member of Singapore Labour Foundation, a Board Trustee of Singapore Indian Development Association and a Member of the Competition Commission of Singapore. Mr Chin was formerly the Managing Partner of KPMG Singapore, from which he retired in 2005 after a 30-year career. Mr Chin holds a Bachelor of Accountancy from the University of Singapore and is an Associate Member of the Institute of Chartered Accountants in England and Wales, and a Fellow CPA of the Institute. Age 59. | | | | | | | | Mr David Conner- Chief Executive...
Words: 4249 - Pages: 17
...Doing business in Malaysia Contents Foreword Chapter 1 - Introduction • • • • • • • • • • • • • • • • • • Geography & population Advantages of investing in Malaysia Language Political environment Economy Major exports and imports Import controls Regulatory environment Financial services Currency denomination Exchange controls Government policy on foreign investment Communications 5 6 Chapter 2 - Intellectual property protection Patents Trade Marks Industrial Design Layout Design of Integrated Circuits Geographical Indications 19 PKF – Doing business in Malaysia 2 Chapter 3 - Business Structure • • • • • • • • • • • • • Types of business structures Companies limited by shares Companies limited by guarantee Foreign companies and foreign investments Sole proprietorship and partnerships Trusts 24 Chapter 4 - Business Finance Equity financing Loan Funding Grants & soft loans 28 Chapter 5 - Investment Incentives Manufacturing Multimedia Super Corridor Status Operational Headquarters International Procurement Centres / Regional Distribution Centres 35 Chapter 6 - Accounting • • • • • • • • • • • • Statutory Accounting Requirements Audit Requirements Accounting Standards 60 Chapter 7 - Taxation Overview of taxes in Malaysia Scope of taxes: Residency Sources of income liable to tax The Tax Year Payment of Tax Corporation tax Interest Deductions Interaction with International Tax Regime Taxation of Partnerships & Trusts ...
Words: 23067 - Pages: 93
...that allows investors to capitalise on Asia, Australia, New Zealand and the Middle East’s improving credit conditions given the high potential of more rating upgrades. Campbell Tupling, Chief Executive of CIMB-Principal Asset Management said, “The demand for high-quality bonds in Asia, Australia, New Zealand and Middle East continues to remain high given the low interest rates outlook in the US and Europe, and this should support bond prices for the next few years. In addition, the slower economic recovery of these developed markets is shifting investment appetite to Asia. Combined with the likelihood of bond rating upgrades, this will mean potential good returns for investors who want to invest in regional high growth prospects in a stable manner.” Post-financial crisis, bonds remain the preferred asset class for more conservative investors because it is less volatile than equities. Asia, for example, remains a sound investment destination with rapid urbanisation, as a younger and higher population growth will necessitate greater infrastructure spending in the coming years. This provides the golden opportunity to profit from the economic power of Asia, Australia, New Zealand and the Middle East. “By taking a three year buy-and-hold strategy, the Fund is buffered from interest rate fluctuations. This means returns will be predictable and in addition to potentially higher than that of cash deposits. We believe that there are many investors who are concerned that the rate...
Words: 8133 - Pages: 33
...June 02, 2014 MY Banking Sector SECTOR RESEARCH | Malaysia NEUTRAL Analyst Desmond Ch’ng, ACA (603) 2297 8680 (unchanged) Loan growth slows to 10% YoY Industry loan growth moderated to 10.0% YoY in Apr 2014 from 10.2% YoY in Mar 2014. All HH loan segments continued to register softer growth except residential property. Still NEUTRAL on the sector; BUYs are AMMB, HL Bank and HLFG. MPHB Capital is also a BUY with a TP of MYR2.42. desmond.chng@maybank-ib.com What’s New Industry loan growth was 10.0% YoY in Apr 2014, with household (HH) loans expanding at a more moderate 11.6% YoY in Apr 2014 vs 11.7% YoY in Mar 2014, while non-HH loan growth was a slower 7.9% YoY vs 8.3% YoY in Mar 2014. Positively, cumulative PDS issuances to date are 4.5% higher versus the same period last year. Also positive is the fact that industry fundamentals remain solid, with an all-time low gross NPL ratio of 1.8%, strong loan loss coverage at almost 105%, stable interest spreads and a stable loan/deposit ratio at 85%. What’s Our View Banks have become more selective in their approval of residential property loans but demand is likely to hold up due to: (i) expectations of higher property prices post GST; and (ii) prevailing negative real rates that will encourage investors to seek an inflation hedge. Whether this will prompt further property measures remains to be seen. Overall loan approval rates continue to soften while application trends have yet to see a meaningful...
Words: 7677 - Pages: 31
...of the industry are considerations that are given priority in the AmBank Group’s products, services and market initiatives. Annual Report 2012 Leading Innovation, Stimulating Market Participation The AmBank Group has closely aligned itself with the country’s efforts at entrenching Malaysia as the world’s leading international hub for Islamic finance. AmInvestment Bank was appointed as one of the Joint Principal Advisers/Joint Lead Arrangers/Joint Lead Managers for the 20-year Sukuk Musharakah Programme of up to RM2.0 billion in nominal value by Westports Malaysia Sdn Bhd on 2 June 2012. It was structured under the widely accepted principle of Musharakah to a wide investor base. AmInvestment Bank was also the Sole Lead Manager for Gulf Investment Corporation GSC, Kuwait’s RM750 million (USD253 million) issuance under its existing 20-year RM3.5 billion (USD1.18 billion) Sukuk Wakalah bi Istithmar Medium Term Notes programme, where AmIslamic Bank was Transaction Agent to facilitate the commodity trading via the Suq Al-Sila’ trading platform on Bursa Malaysia. To enable customers to ride on the growth of commodities, AmIslamic Bank launched two Islamic Negotiable Instruments of Deposit, the AmEnergy NID-i (energy-themed) and AmAdvantage Plus NID-i (oil, corn, copper and cotton). AmFamily Takaful Berhad, a joint venture company between AmBank Group and Friends Life Group of the UK,...
Words: 5436 - Pages: 22
...ABSTRACT The Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate governance practice. After 1998, Malaysian government decided to adopt corporate reform that could enhance the quality of good corporate management practice. This reform is clearly stated in the code and rules of corporate governance. The purpose of this research is to study the significance of implementing the code and rules of corporate governance since the public already realize the close relationship between business and politics. Three companies were chosen as indicators for this study. As a result, it was found that companies which are involved in corporate malpractice but have good relationship with states will always be excluded from the legal corporate action. Keywords: corporate governance, corporate reforms, political economy, state business relation INTRODUCTION Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate governance practice. After 1998, Malaysian government decided to adopt corporate reforms that could enhance the quality of good corporate management practice. This included the introduction of the new Malaysian code and rules for corporate governance. The debate of corporate governance in Malaysia are often limited to agencies involved directly in law enforcement such...
Words: 4860 - Pages: 20
...History And Background On Bursa Malaysia Finance Essay Today, Bursa Malaysia is one of the largest bourses in Asia with just under 1000 listed companies offering a wide range of investment choices to the world. Bursa Malaysia operates as a fully integrated exchange, offering the full range of Exchange-related services including clearing, trading, settlement and depository services. In 1930, the first formal securities business organization in Malaysia, Singapore Stockbrokers’ Association was established and it was re-registered as the Malayan Stockbrokers’ Association in 1937. In 1960, the Malayan Stock Exchange was established and the public trading of shares commenced. Direct telephone lines linked the board system had trading rooms in Singapore and Kuala Lumpur. The Stock Exchange of Malaysia was established in 1964. In 1965, the Stock Exchange of Malaysia became known as the Stock Exchange of Malaysia and Singapore with the secession of Singapore from Malaysia. The Stock Exchange of Malaysia and Singapore was divided into the Kuala Lumpur Stock Exchange Berhad and Stock Exchange of Singapore due to the ceased of currency interchangeability between Malaysia and Singapore in 1973. The operation of the Kuala Lumpur Stock Exchange Berhad was taken over by the Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee. The name Bursa Malaysia Berhad changed on April 14, 2004. The purpose was to enhance their competitive position...
Words: 1803 - Pages: 8
...disclosure by Islamic banks: evidence from Gulf Cooperation Council countries Abdullah Awadh Bukair and Azhar Abdul Rahman Abstract Corporate social activities have become major subjects because of their effects on the quality life of citizens, in particular, and on the society at large. Therefore, today, there is an increase awareness of social responsibility due to the challenges meeting the financial institutions (particularly, Islamic banking) around the world. This paper examines the influence of the board of directors’ characteristics, consisting of board size, board composition, and the separation roles of CEO and chairman, on corporate social responsibility (CSR) disclosure in 53 annual reports of Islamic banks of Gulf Cooperation Council (GCC) countries after controlling of bank size, financial performance and relevant public. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. On contrast, the study found insignificantly and positive association between CSR disclosure and other characteristics of board of directors (board size and the separation roles of CEO and chairman). With regards control variables, the study indicates that bank size and financial performance have a positive and significant influence on CSR disclosure, while relevant public has no effect. Therefore, the results indicate that corporate governance structure of board of directors within Islamic banks of GCC...
Words: 11161 - Pages: 45
...OF BANKING SECTOR AND STOCK MARKET DEVELOPMENT ON THE MALAYSIAN ECONOMIC GROWTH: AN EMPIRICAL INVESTIGATION BY HAFSAH AHMAD A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN ECONOMICS KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA MAY 2005 1 ABSTRACT This study investigates the long-run relationship between financial development (banking sector and stock market development) and economic growth in Malaysia. Six variables based on Malaysian quarterly data from 1978:1 to 2002:4 are employed, namely real GDP per capita, investment rate and ratios of credit, deposit, market capitalization, and value of shares traded to GDP. Two dynamic frameworks are adopted - Vector Auto regression (VAR) with error correction formulation for causality analyses and dynamic OLS (DOLS) procedure for estimation of growthfinance long-run relation. Causality analyses show that there is bi-directional causality between financial development (banking sector and stock market development) and economic growth. Analyses on growth-finance long-run relations indicate that banking sector development and stock market development individually have an independent positive effect on long-run economic growth. They enhance economic growth through both channels – the volume and efficiency of investment, with the latter being the main source of their independent effect. The study also shows that banking sector...
Words: 4882 - Pages: 20
