Radzi calls for dedicated regulator for non-bank financial institutions
Putrajaya MP Radzi Jidin has urged the Malaysian government to establish a dedicated 'super-regulatory body' to oversee non-bank financial institutions. He suggests modeling the agency after Australia's APRA to better manage public funds like EPF and Tabung Haji.
Why it matters
This proposal addresses concerns regarding the oversight of massive public statutory funds, which currently lack a unified regulatory framework in Malaysia.
Putrajaya MP Radzi Jidin today urged the government to consult former BNM governor Muhammad Ibrahim and regulatory experts on the proposal for a ‘super-regulatory body’.
KUALA LUMPUR: The government has been urged to establish a regulatory body modelled on the Australian Prudential Regulation Authority (APRA) to strengthen oversight of institutions that manage public funds.
Radzi Jidin (PN-Putrajaya) said the body could regulate institutions such as Tabung Haji (TH), EPF, the Retirement Fund Inc (KWAP), the Armed Forces Fund Board (LTAT), and Permodalan Nasional Bhd (PNB).
He said the move was necessary as Malaysia currently does not have a comprehensive regulatory framework for non-bank financial institutions (NBFIs).
Radzi said that while specific sectors like development finance, insurance, and capital markets are supervised by Bank Negara Malaysia (BNM) or the Securities Commission Malaysia (SC), major statutory funds and credit providers are governed by separate laws and ministries.
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