Foreign shareholders of insurers were allowed to operate in Malaysia based on their promise and commitment, including maintaining specified levels of domestic shareholding within agreed timelines, said Bank Negara.
“Without these promise and commitment, they would not have been allowed to operate in Malaysia. Bank Negara expects these insurers to honour their promise and commitment,” it said in a statement yesterday.
The central bank was responding to a Singapore Straits Times article titled “Foreign Insurers in Malaysia Resisting Divestment: Sources.”
The article, quoting industry executives and Malaysian government officials, stated that two major foreign insurance companies – AIA and American International Group – are baulking at complying with Bank Negara’s directive on ownership following intervention by the US government.
In April last year, Bank Negara laid down a set of deadlines that called on foreign insurance companies to divest a minimum of 30% interest in their operations to local investors.
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