Objectives & Functions
Bank Negara Malaysia is the central bank for Malaysia. It was established on 26 January 1959, under the Central Bank of Malaya Ordinance, 1958, with the following objectives:
- To issue currency and keep reserves safeguarding the value of the currency;
- To act as a banker and financial adviser to the Government;
- To promote monetary stability and a sound financial structure;
- To promote the reliable, efficient and smooth operation of national payment and settlement systems and to ensure that the national payment and settlement systems policy is directed to the advantage of Malaysia; and
- To influence the credit situation to the advantage of the country.
In meeting these objectives, the Bank is guided by the principle that it should act only in the economic interest of the nation and without regard to profit as a primary consideration.
Hence, the functions of the Bank are carried out within the context of the broader goals of promoting economic growth, a high level of employment, maintaining price stability and a reasonable balance in the country's international payments position, eradicating poverty and restructuring society.
In particular, the Bank ensures that the availability and cost of money and credit in the economy are consonant with national macroeconomic objectives. In this respect, the Bank acts as the banker for currency issue, keeper of international reserves and safeguarding the value of the ringgit, banker and financial adviser to the Government, agency responsible for monetary policy and management of the financial system and banker to the banks.
Bank Negara Malaysia, as the Central Bank, is committed to excellence in promoting monetary and financial system stability and fostering a sound and progressive financial sector, to achieve sustained economic growth for the benefit of the nation.
This will be achieved through:
- promoting a work culture which emphasises the highest standards of professionalism and integrity, prudence, teamwork and innovation;
- developing and maintaining a committed workforce which is highly competent and proactive, sensitive to the changing needs of the industry;
- adopting a collaborative approach in everything we do;
- promoting the effective use of technology and good work practices to enhance productivity, efficiency and quality;
- adopting policies and practices to enhance the competitiveness of local financial institutions to face international competition; and
- having the necessary financial resources and financial instruments to effectively manage monetary stability.
Section 9 (1) of the Central Bank of Malaysia Act 1958 provides that the Governor shall be appointed by the Yang Di Pertuan Agong, and the Deputy Governors by the Minister of Finance. Since the Bank's inception in 1959, there has been seven Governors.
Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz
Since May 2000
Tan Sri Dato' Seri Ali Abul Hassan bin Sulaiman
|Tan Sri Dato' Ahmad bin Mohd Don |
May 1994 - August 1998
Tan Sri Dato' Jaffar bin Hussein
June 1985 - May 1994
Tan Sri Abdul Aziz bin Taha
Tun Ismail bin Mohamed Ali
July 1962 - July 1980
|Tan Sri W.H. Wilcock |
Board of Directors
The policy of the Bank is entrusted to its Board of Directors, which presently consists of nine members. The ex-officio members of the Board are the Governor, the Deputy Governors and the Secretary-General to the Treasury. The other directors are persons of standing and experience in banking and economic affairs. All members except the Deputy Governors are appointed by His Majesty the Yang Di-Pertuan Agong. The Governor, or in his or her absence, one of the Deputy Governors, is the chairman of the Board, which is statutorily required to meet at least once a month. The current members are:
Senior Officers of the Bank
This list is valid as at 14 March 2008. The general telephone number for the Bank's Head Office in Kuala Lumpur is +(603) 2698 8044.
Branch & Representative Office Managers
Contacting the Bank
Members of the public can contact BNMLINK and BNMTELELINK for information, enquiries or redress in the areas of conventional and Islamic banking, insurance and takaful, advisory services for small and medium enterprises, foreign exchange administration and other matters under Bank Negara Malaysia's purview.
Overseas Representative Offices
To enable the Bank to meet the objectives of a central bank, it is vested with comprehensive legal powers under the following legislation to regulate and supervise the financial system. These pieces of legislation include:
Central Bank of Malaysia Act 1958 (Revised 1994)An Act to provide for the establishment, administration, powers and duties of a Central Bank of Malaysia. Incorporating Latest Amendments up to Act A1328/2008 - cif : 8 February 2008
Banking and Financial Institutions Act 1989 (BAFIA)An Act to provide new laws for the licensing and regulation of institutions carrying on banking, finance company, merchant banking, discount house and money-broking businesses, for the regulation of institutions carrying on certain other financial businesses, and for matters incidental thereto or connected therewith. Incorporating Latest Amendments up to Act A1256/2005 - cif : 1 Apr. 2006
Exchange Control Act 1953An Act to confer powers, and impose duties and restrictions in relation to gold, currency, payments, securities, debts, and the import, export, transfer and settlement of property, and for purposes connected with the matters aforesaid. Incorporating Latest Amendments up to Act A1241/2005 - cif : 1 Jan. 2007
Islamic Banking Act 1983An Act to provide for the licensing and regulation of Islamic banking business. Incorporating Latest Amendments up to Act A1307/2007 - cif : 31 July 2007
Insurance Act 1996
An Act to provide new laws for the licensing and regulation of insurance business, insurance broking business, adjusting business and financial advisory business and for other related purposes. Incorporating Latest Amendments up to Act A1247/2005 - cif : 1 Jan. 1997
Takaful Act 1984An Act to provide for the regulation of takaful business in Malaysia and for other purposes relating to or connected with takaful. Incorporating Latest Amendments up to Act A1306/2007 - cif : 31 July 2007
Development Financial Institutions Act 2002 (Act 618)The DFIA which came into force on 15 February 2002 focuses on promoting the development of effective and efficient development financial institutions (DFIs) to ensure that the roles, objectives and activities of the DFIs are consistent with the Government policies and that the mandated roles are effectively and efficiently implemented. DFIA also emphasises on efficient management and effective corporate governance, provides a comprehensive supervision mechanism and mechanism to strengthen the financial position of DFIs through the specification of prudential requirements. Incorporating Latest Amendments up to PU(A)285/2007 - cif : 31 August 2007
See also : The Salient Features of the DFIA
Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (Act 613)This renamed and revised Act which came into force on 6 March 2007, is to provide for the offence of money laundering, the measures to be taken for the prevention of money laundering and terrorism financing offences and to provide for the forfeiture of terrorist property and property involved in, or derived from, money laundering and terrorism financing offences, and for matters incidental thereto and connected therewith.Incorporating Latest Amendments up to
Act A1208/2003 - cif : 6 March 2007
PU(A) 101/2007 - cif : 9 March 2007
PU(A) 102/2007 - cif : 9 March 2007
PU(A) 103/2007 - cif : 9 March 2007
PU(A) 104/2007 - cif : 9 March 2007
PU(A) 105/2007 - cif : 9 March 2007
PU(A)385/2007 - cif : 22 November 2007
PU(A)435/2007 - cif : 29 December 2007
Payment Systems Act 2003 (Act 627)An Act to make provisions for the regulation and supervision of payment systems and payment instruments and for matters connected therewith. Came into force on 1 Nov 2003.
Money-Changing Act 1998 (Act 577)An Act to provide for the licensing and regulation of money-changing business and for other matters related thereto. Incorporating Latest Amendments up to PU(A) 237/2006 - cif : 21 Jul 2006