Malaysian banks must change to stay competitive

Malaysian banks must constantly evolve and make necessary changes to stay competitive as more foreign banks make their way into the country, says Deputy Finance Minister Datuk Othman Aziz.

He said the entry of foreign banks was unstoppable as the banking industry was undergoing constant changes with the rapid development of technology to suit the needs and demand of customers.

"What's more important is, that customers' interest are taken care despite the constant changes.

"Later on, we (ministry) do not want to hear from customers that they feel cheated by banks and so on," he told Bernama at the Hari Raya Open House organised by Malaysia Debt Ventures Bhd here yesterday.

Banks can expect greater access and flexibility in each ASEAN market under the ASEAN Banking Integration Framework.

Under the framework, which would integrate the banking economics of ASEAN nations, Indonesia, Malaysia, the Philippines, Singapore and Thailand would sign bilateral agreements by 2018.

Othman said while the banks assumed their role, the government, through Bank Negara Malaysia and the Securities Commission of Malaysia, would also put in place necessary rules and regulations. - BERNAMA