Kuala lumpur: Bank Negara Malaysia (BNM) has set a more comprehensive framework to assess the performance of development financial institutions (DFIs) beginning in 2027, according to the Ministry of Finance (MOF).

According to BERNAMA News Agency, the MOF stated that BNM has issued the Performance Measurement Framework (PMF) policy document, which will take effect from July 1, 2027. The PMF is designed to provide a more structured framework to enhance the implementation of the development mandate by DFIs.

The MOF elaborated that under the PMF, the performance of DFIs will be evaluated more comprehensively based on several criteria. These include the achievement of the development mandate, the development impact created for the targeted sectors and segments, the development additionality generated compared with commercial financing, and the level of governance, accountability, and operational efficiency. This information was provided in a written reply by the ministry to the Senate and posted on the Parliament's website today.

Senator Robert Lau Hui Yew had inquired about the government's assessment of the effectiveness of DFIs in achieving their respective policy objectives. Lau also questioned whether there is any overlap in mandates, financing programmes, and target customer segments among the institutions, and if the government plans to rationalise or consolidate any of these institutions to enhance efficiency and reduce duplication of functions.

Currently, Malaysia operates six DFIs under the Development Financial Institutions Act 2002. These institutions include Bank Rakyat, Bank Pembangunan Malaysia Bhd, Agrobank, Bank Simpanan Nasional (BSN), EXIM Bank, and SME Bank. In 2025, cumulative financing from DFIs rose to RM193.9 billion, with financing approvals for 1.8 million accounts covering target sectors such as infrastructure, agriculture, small and medium enterprises (SMEs), including micro enterprises, and segments with limited access to commercial financing.