Bank Pembangunan aims to disburse more loans to Sabah

KUALA LUMPUR: Bank Pembangunan Malaysia Bhd (BPMB) is aiming to disburse up to RM4.5 billion in loans in 2018, up from about RM4 billion last year.

President/Group Chief Executive Officer, Shaharuddin Zainuddin, said a big chunk of the loans would be allocated for the infrastructure segment, even though the bank was looking at rebalancing its portfolio to the other three mandated sectors.

The bank is mandated to provide financing to the infrastructure, oil and gas (O&G), maritime and technology sectors.

“Malaysia has massive infrastructure needs, at least for the next 15 to 20 years, so we are looking at devoting much more of our loan book towards Sabah, Sarawak and various economic corridor projects such as in Peninsular Malaysia,” he said.

He told reporters this after launching the BPMB x the National Transformation 2050 (TN50): Workplace of the Future initiative, along with Youth and Sports Minister, Khairy Jamaluddin here, yesterday.

Shaharuddin said currently, BPMB allocates around 70 per cent of the loans to infrastructure segment, followed by O&G segment (10-15 per cent) and the remaining to technology and maritime segments.

“We are also looking at financing projects such as the Mass Rapid Transit and Pan-Borneo Highway in Sabah as well,” he said.

Despite noting that financing for the Pan-Borneo Highway, for instance, could be provided by commercial banks, he said small contractors such as those that required financing for tractors, lorries and various equipment, still found it difficult to secure loans.

“This is the area that we can come in and support the economy,” he said.

Apart from the infrastructure sector, Shaharuddin said there was also strong financing demand from the O&G and maritime sectors, as wellastechnologysectorsuchassolar and alternative energy projects.

“So this year, we are looking at rebalancing our portfolio towards the other three mandated sectors,” he added. — Bernama