Foreign insurers’ divestment plans at advanced stages

By REUTERS / Pic By BERNAMA

Malaysia’s central bank yesterday said foreign insurers’ plans to divest stakes to comply with a local rule on ownership are at advanced stages.

Bank Negara Malaysia (BNM) issued a directive last year saying it would enforce its 2009 rule setting a 70% cap on foreign ownership of local insurance businesses. The deadline was set for June 30.

In an emailed statement to Reuters, BNM said Datuk Nor Shamsiah Mohd Yunus (picture), set to take over as its governor on July 1, will be briefed on the plans.

“BNM will continue to engage the insurers on their plans thereafter,” the central bank said.