Asia Financial Services

With an election looming and uncertainty over the state of the global economy, Malaysia’s banks may have to work hard to maintain earning levels amid predictions of lower rates of household borrowing growth.

The Islamic banking segment strengthened its position within Brunei Darussalam’s financial services industry last year on the back of rising demand that led to the launch of a new bank and major bond issuances. Having moved early to establish sharia-compliant services, the Sultanate is now well placed to carve out a niche for itself as an international Islamic banking centre. However, the industry will need to address a number of challenges, led by a shortage of skilled workers, if it is to fully support the segment’s development.

The government is preparing the groundwork to give securities regulations an overhaul as part of Papua New Guinea’s (PNG) plans to enhance both its investment climate and international credit rating.

A flurry of initial public offerings (IPOs) planned for December and early 2013 highlight how firms in Indonesia are trying to harness bullish domestic and global confidence to fund plans for expansion.

The potential of mobile phone banking in Papua New Guinea (PNG) has been evident ever since a local telecoms company launched a service in 2009 allowing subscribers to purchase electricity by using pre-paid airtime credit. For PNG’s banks, it presents the easiest route to tapping into the nation’s 87.5% rural population.

The recent implementation of monetary tightening measures has seen confidence in the stability of Mongolia’s banking system rise in recent months as credit growth slows. However, exponential growth expected in the economy due to an influx of resource revenues will require the central bank to maintain strict macroeconomic vigilance.