Bank Negara Malaysia (BNM), the country’s central bank and top financial regulator, has reminded foreign-owned insurers regarding their “promise” to comply with domestic shareholding guidelines.
“Without this promise and commitment, they would not have been allowed to operate in Malaysia,” it said in a statement. “Bank Negara expects these insurers to honour their promise and commitment.”
The regulator was responding to a Straits Times report regarding several insurers’ resistance to its decision to enforce a long-standing 70% cap on foreign ownership in insurers. In April 2017, BNM imposed deadlines on the insurance industry requiring foreign-owned insurers to divest at least 30% of their shares to Malaysian investors.
