Question

Explain FIVE (5) types of major developments that have occurred to financial institutions in Malaysia today more than ever.

Answer 1

5 types of major development that has occurred to financial institution in Malaysia are as follows-

A.Financial institutions have seen a large amount of foreign direct investment into the Malaysian economy and they are managing the foreign investments.

B. They are also exposed to a large amount of currency risk because there is a high level of globalisation and they are exposed to a whole lot of currency risk.

C. One of the Other development of financial institution in Malaysia is that monetary policies are regularly getting updated with the market structure so they will have to adapt to the changing monetary policies in order to survive.

D.There are introduction of complex financial instruments in the financial world so these Financial institutions in Malaysia has to manage them proactively in order to minimise the risk.

E. Total investment of domestic investors into the financial markets has subsequently increased so there is a high amount of exposure into the equity Markets and they need to to provide additional services in order to stay competent