Throughout its history, ABM has focussed on making financial services accessible to millions, uplifting underserved populations, especially those facing barriers.
Celebrating ABM’s contribution in strengthening financial inclusion and empowering lives
THE Association of Banks in Malaysia (ABM) celebrates its 50th anniversary, reflecting on its journey that transcends traditional financial services.
Over the past five decades, the association has evolved from being a cornerstone of the financial sector to a key driver of transformation across Malaysia.
Through its efforts to bring together banks, government agencies, regulators and industry partners, it has been instrumental in fostering financial inclusion and empowering communities nationwide.
By aligning the financial sector with national goals, it has become a significant enabler of change, uplifting underserved populations and strengthening the country’s economic resilience.
This milestone underscores its role in shaping a future where banking is integral to improving lives and building a more inclusive society.
Throughout its history, ABM has focused on making financial services accessible to millions, uplifting underserved populations, especially those facing barriers.
This commitment includes reaching out to the low-income B40 demographic, persons with disabilities (PWD) and small and medium enterprises (SMEs).
By addressing these gaps, it contributes not only to individual well-being but also to the overall strength of the national economy.
It has been instrumental in supporting micro, small and medium enterprises (MSMEs), which are essential to Malaysia’s economic landscape, contributing nearly 40% to the country’s gross domestic product (GDP).
The banking industry has collectively provided financing for SMEs, ranging from family-owned businesses to innovative tech startups, with total outstanding loans amounting to approximately RM401.8bil as of the end of July this year. This support fosters business growth and promotes community resilience, job creation and economic stability.
In addition to loans, member banks provide crucial resources that contribute to sustainable growth and competitiveness in both local and global markets.
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An essential element of ABM’s impact is its commitment to financial inclusion, extending beyond traditional banking.
The association collaborates with member banks to enhance access to banking services for low-income households, promoting initiatives that facilitate greater financial accessibility.
With an allocation exceeding RM10bil for microfinancing, ABM member and non-member banks have enabled countless Malaysians to start businesses and improve their economic circumstances.
The association is committed to improving financial literacy alongside promoting financial access through the Financial Industry Collective Outreach (Finco) initiative, which was launched in 2016.
Reaching over 790,000 students and young adults, Finco equips individuals with the knowledge necessary for informed financial decision-making.
This investment in education is vital for ensuring that future generations can manage their finances responsibly, contributing to Malaysia’s long-term economic sustainability.
ABM has been a key facilitator of nation-building efforts, particularly through its role in financing major infrastructure projects.
Its member banks have helped fund large-scale developments in sectors such as transportation, energy and healthcare, providing over RM150bil for national infrastructure projects under various Malaysia Plans, from the Second Malaysia Plan (RMK2) in 1973 to 12th Malaysia Plan (RMK12), currently in effect.
These investments have been pivotal in shaping Malaysia’s rapid economic growth, improving connectivity and ensuring access to essential services for millions of Malaysians.
Its support has also extended to housing development, where mortgage loans provided by member banks are estimated at RM700bil as of August this year.
These efforts have empowered millions to own homes, fostering social stability and contributing to the urbanisation of key regions like Klang Valley, Penang and Johor Baru.
ABM has consistently aligned itself with Malaysia’s national economic development blueprints, playing a key role in driving initiatives that bolster the country’s competitiveness.
Under 11th Malaysia Plan (RMK11), it supported the SME Masterplan, facilitating over RM30bil in financing to help SMEs scale and compete in the global market.
This targeted support has been instrumental in driving growth in critical sectors such as manufacturing, agriculture and technology.
Its alignment with national priorities extends further, with member banks actively financing projects under the National Industrial Master Plan (NIMP 2030) and the National Energy Transition Roadmap (NETR).
In support of Malaysia’s clean energy transition, ABM member banks have issued RM7bil in Asean Sustainability Bonds, reinforcing the country’s shift toward a low-carbon economy and sustainable development.
Its role in nation building has been particularly evident in times of economic uncertainty.
During the Asian Financial Crisis in the late 1990s, ABM member banks were instrumental in stabilising the economy by providing targeted financial assistance and restructuring debt for businesses and individuals.
During the Covid-19 pandemic, member banks extended RM97bil in loan moratoriums, providing critical support to over eight million Malaysians.
In addition to debt restructuring, the association facilitated various initiatives to boost market liquidity, aligning with Bank Negara’s financing schemes to ease the financial burden on businesses.
These efforts resulted in over RM25bil in relief financing by 2022, supporting sectors most affected by the pandemic and ensuring economic stability.
Its focus on human capital development has been integral to its long-term strategy.
Recognising the importance of a well- educated workforce in sustaining Malaysia’s economic growth, ABM has worked with government agencies to finance educational institutions.
Over the past two decades, more than RM3bil in student loans have been made available, enabling students from diverse backgrounds to pursue higher education.
Its commitment to financial literacy is further evidenced by its initiatives under Financial Literacy Month, organised in collaboration with Bank Negara and member banks.
These efforts have reached over 1.2 million Malaysians, helping ensure future generations are better equipped to manage their finances and contribute to the nation’s economic sustainability.
As the world moves toward a more sustainable future, ABM has been proactive in supporting Malaysia’s transition to a low-carbon economy.
Member banks have played a pivotal role in driving environmental, social and governance (ESG) considerations, particularly through their participation in the Joint Committee on Climate Change (JC3).
Through the issuance of Asean Sustainability Bonds and other initiatives, ABM has demonstrated its commitment to advancing sustainable finance and fostering a green economy.
Looking ahead, ABM remains committed to shaping a more inclusive, sustainable and resilient society.
Its unwavering dedication to nation-building, social impact and empowering lives of individuals and communities continue to lay the foundation for Malaysia’s better tomorrow.
To learn more, visit www.abm.org.my/
