FP 601

BUSINESS SUPPORT IN
MALAYSIA
FINANCIAL INSTITUTIONS

NAME

VIGINES A/L GANESON

21DIP13F1052
EDWARD A/L RAYMOND
21DIP13F1012
LINKESHWAR A/L SARAVANA MURTHY
21DIP13F1042
MUHD HARITH BIN SHAHARI
21BIP14F1021
THAQIB WAZINI BIN KHAIRUDDIN
21BIP14F1019

CLASS

D1P 6B

PROGRAMME

DIPLOMA OF INFORMATION TECHNOLOGY

(PROGRAMMING)

LECTURER

PN. NORHARLIZA BINTI IDRIS

INTRODUCTION
In finance and economics, a financial institution is an institution that provides financial
services for its clients or members. One of the most important financial services provided by
a financial institution is acting as a financial intermediary. Most financial institutions are
regulated by the government. Two main types of financial institution are depository
institutions and non-depository institutions.
Depository institutions allow customers to deposit money in an account and pays a fixed or
variable rate of interest. It also called savings association, savings institution and thrift
institution. Examples of depository institutions include commercial banks and credit unions.
A Commercial bank is a type of Bank or Financial Institution that provides services such as
accepting deposits, making business loans, and offering basic investment products.
Commercial bank can also refer to a bank, or a division of a large bank, which more
specifically deals with deposit and loan services provided to corporations or large/middlesized.
A credit union is a member-owned financial cooperative, democratically controlled by its
members, and operated for the purpose of promoting thrift, providing credit at competitive
rates, and providing other financial services to its members. Many credit unions also provide
services intended to support community development or sustainable international
development on a local level. Worldwide, credit union systems vary significantly in terms of
total system assets and average institution asset size, ranging from volunteer operations
with a handful of members to institutions with assets worth several billion US dollars and
hundreds of thousands of members. Credit unions operate alongside other mutual and/or
co-operative organizations engaging in cooperative banking, such as building societies.
Non-depository institutions do not allow customers to deposit money. However they are
considered financial institutions because they transfer funds from savers to borrowers by
investing the funds they receive.

Insurance companies and mutual funds are non-depository financial institutions. Insurance is
a means of protection from financial loss. It is a form of risk management primarily used to
hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is
selling the insurance; the insured, or policyholder, is the person or entity buying the
insurance policy. The amount of money to be charged for a certain amount of insurance
coverage is called the premium. Risk management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively small loss
in the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnity) the insured in the case of a financial (personal) loss. The insured receives a
contract, called the insurance policy, which details the conditions and circumstances under
which the insured will be financially compensated.
A mutual fund is a professionally managed investment fund that pools money from many
investors to purchase securities. While there is no legal definition of the term "mutual fund", it
is most commonly applied only to those collective investment vehicles that are regulated and
sold to the general public. They are sometimes referred to as "investment companies" or
"registered investment companies". Hedge funds are not mutual funds, primarily because
they cannot be sold to the general public.

DEPOSITORY INSTITUTIONS
COMMERCIAL BANKS
1. CIMB

CIMB Group is a universal bank headquartered in Kuala Lumpur, operating in high

growth economies in ASEAN. CIMB Group is an indigenous ASEAN investment
bank, the largest Asia Pacific (ex-Japan) based investment bank and one of the
world's largest Islamic banks. CIMB has a wide retail branch network with 1,080
branches across the region.
The group operates under several entities, which include CIMB Investment Bank,
CIMB Bank, CIMB Islamic, CIMB Niaga, CIMB Securities International and CIMB
Thai. The group's business activities are primarily in the areas of Consumer Banking,
Wholesale Banking, comprising Investment Banking and Corporate Banking,
Treasury & Markets, and Group Strategy & Strategic Investments, with its core
markets being Malaysia, Indonesia, Singapore and Thailand. CIMB Islamic operates
in parallel with these businesses, in line with the group's dual banking model.
The group has over 40,000 employees located in 18 countries, covering ASEAN and
major global financial centers, as well as countries in which its customers have
significant business and investment dealings.
The group's geographical reach and its products and services are complemented by
partnerships. Its partners include the Principal Financial Group, Bank of TokyoMitsubishi UFJ, Standard Bank and Daewoo Securities, among others.

2. AmBank

AMMB Holdings Berhad or also known as AmBank is a financial services group in

Malaysia whose core businesses are retail banking, wholesale banking, islamic
banking, and life and general insurance.
The group trades under a number of brands, including AmBank, AmInvestment Bank,
AmInvest, AmIslamic Bank, AmGeneral Insurance and AmMetLife. AmBank, its key
brand, covers its retail and wholesale banking businesses and is supported by a
network of 179 branches and 884 ATM machines in Malaysia (as stated in its Annual
Report 2014).
AmBank Group was founded in 1975 as Arab-Malaysian Development Bank, by
Merchant Banking pioneer, Hussain Najadi via his holding company AIAK(Arab
Investments for Asia Kuwait). He brought the bank public via the Kuala Lumpur Stock
Exchange (KLSE) in 1981.
Tan Sri Azman Hashim, the current group chairman, has an interest of 14.01% in
AMMB Holdings as at 30 June 2014. The single largest shareholder in AMMB
Holdings is Australia's ANZ Group with an interest of 23.78% as at 30 June 2014.In
2006, Amcorp's interest in AMMB was reduced to 18.8% from 32.9% after the Tan Sri
Azman sold 300 million shares to ANZ Group.

CREDIT UNIONS
1. AEON Credit Service (M) Berhad

AEON Credit Service (M) Berhad (AEON Credit or the Company) was incorporated
on 6 December 1996 and was converted into a public limited company on 9 February
2007 and listed on the Main Market at Bursa Malaysia Securities Berhad on 12
December 2007. AEON Credit commenced operations in 1997 by providing Easy
Payment schemes for purchase of consumer durables such as electrical and
electronic equipments, IT gadgets, furniture etc. through appointed retail merchants
and chain stores.Today the business of the Company had expanded to include
issuance of Credit Cards, Vehicle Easy Payment schemes for the purchase of
motorcycles, cars and commercial vehicles, Personal Finance scheme, equipment
financing for SME businesses, Insurance business, and other services.
AEON Credit believes in working closely with its business partners to provide
consumer financing products and services which meet customer needs. The
Company currently has more than 3.0 million card members for the various products
and more than 3,000 staff in service with the Company.
AEON Credit is a subsidiary of AEON Financial Service Co., Ltd. Japan (AFSJ),
which is listed on the First Section of the Tokyo Stock Exchange. AFSJ is mainly
involved in the issuance of credit cards, and it currently has more than 24.34 million
card members in Japan. It is one of the biggest credit card issuers and leading
consumer credit provider in Japan. AFSJ is in turn part of the AEON Group of
Companies (AEON Group), a global retail and financial services group. AEON Group
consists of more than 260 subsidiaries and affiliated companies. AEON Group
operates not only in Japan but also in Southeast Asia, China and India. The
Fundamental principle of AEON is its customer-centered approach. AEONs mission
is to contribute to consumers.
AEONs most basic and abiding principles are the pursuit of peace, respect for
humanity, and contribution to local communities through customer-centered
initiatives. Under these principles, we are determined to achieve global management
standards. All companies under the AEON Group are guided by the unchanging
Customer First philosophy. Its aim is to surpass expectations by combining
excellent products with unique personal services.

NON-DEPOSITORY INSTITUTIONS
INSURANCE COMPANIES
1. AIG - American International Group

American International Group, Inc. also known as AIG is an American

multinational insurance corporation with more than 88 million customers in 130
countries. AIG companies employ over 64,000 people in 90 countries. The company
operates through three businesses: AIG Property Casualty, AIG Life and Retirement
and United Guaranty Corporation (UGC). AIG Property Casualty provides insurance
products for commercial, institutional and individual customers. AIG Life and
Retirement provides life insurance and retirement services in the United States. UGC
focuses on mortgage guaranty insurance and mortgage insurance. AIG also focuses
on global capital markets operations, direct investment and retained interests.
AIGs corporate headquarters are in New York City, its Europe, Middle East, and
Africa (EMEA) headquarters are in London, and its Asian headquarters are in Hong
Kong. The company serves 98% of the Fortune 500 companies, 96% of Fortune
1000, and 90% of Fortune Global 500, and insures 40% of Forbes 400 Richest
Americans. AIG was ranked 40th largest company in the 2014 Fortune 500 list.
According to the 2014 Forbes Global 2000 list, AIG is the 42nd-largest public
company in the world. On March 31, 2015 AIG had a market capitalization of $75.04
billion.

MUTUAL FUNDS
1. Public Mutual Berhad

Public Bank Berhad is a bank based in Kuala Lumpur, Malaysia offering financial
services in Malaysia as well as the Asia-Pacific region. The bank was founded in
1966 by Teh Hong Piow, the then general manager of Malayan Banking. The bank
was listed on the Malaysian Stock Exchange in 1967.Public Bank is currently one of
the largest banks in Southeast Asia, with over US$98.88 billion of assets and
US$20.4 billion in market capitalization in 2014.
Public Bank is the largest bank in Malaysia by shareholders' funds, second largest by
market capitalization, just behind Maybank and third largest by total assets, behind
Maybank and CIMB.
Public Bank currently offers a comprehensive range of financial products and
services which include personal banking, commercial banking, Islamic banking,
investment banking, share broking, trustee services, nominee services, sale and
management of unit trust funds, bank assurance and general insurance products.
Public Bank currently has a network of 259 branches and 1,801 self-service terminals
in Malaysia. The company also has its presence in the Asia-Pacific region with a
network of 83 branches in Hong Kong, 27 branches in Cambodia, 7 branches in
Vietnam, 4 branches in Laos, 3 branches in China and 3 branches in Sri Lanka.In
total, the company serves more than 9 million customers in countries where it
operates.

CONCLUSION

Financial institution is one of the key for entrepreneurs to be successful. Assistance is

available when recourse to normal sources is impracticable or unprofitable. Modernization
and expansion plans can be financed without much strain on the financial structure of the
company. As these institutions carry out a thorough investigation before granting assistance
to a concern, relationship with them helps to increase the credit-worthiness of a company.
Loans and guarantees in foreign currency and deferred payment facilities are available for
the import of required machinery and equipment. The rate of interest and repayment
procedures are convenient and economical. Facilities for repayment in easy installments are
made available to the deserving concerns. Along with finance, a company can obtain expert
advice and guidance for the successful planning and administration of projects.

REFERENCE

1. http://www.yourarticlelibrary.com/financial-management/institutional-financeadvantages-and-limitations-of-institutional-finance/27970/
2. http://study.com/academy/lesson/types-of-financial-institutions-definition-examplesroles.html
3. https://en.wikipedia.org/wiki/List_of_banks_in_Malaysia
4. http://www.publicmutual.com.my/
5. http://www.investopedia.com/walkthrough/corporate-finance/1/financialinstitutions.aspx