Financial services NKEA hits 111% KPI in 2016

KUALA LUMPUR: Malaysia’s financial services sector remained resilient and has grown exponentially in 2016, with the Financial Services National Key Economic Area (NKEA) achieving a key performance index of 111 percent .

In the National Transformation Programme Annual Report 2016 released today, the Performance Management Delivery Unit (Pemandu) said the better results helped provide the backbone for a thriving economy and was the result of collective efforts across various agencies involved amid challenging global environment.

Among the challenges included the slowing global growth especially in big economies such as China and Europe, impact on international relations due to Brexit and the Trans Pacific Partnership Agreement, as well as, the continued volatility in commodities prices.

The report said among key developments in the sector during 2016 included the increasing mainstream adoption of new digital technologies incorporated into existing financial products and services.

Fintech, a technology that could drive down costs and promote efficiency in the market, had the potential to broaden the participation of retail investors, as well as, provide more access to funding to the micro, small and medium enterprises (MSME) business community.

The sector also saw six Peerto-Peer (P2P) financing platform operators approved and registered with the aim to widen funding opportunities for small and medium enterprises (SME).