Public-listed Malaysia Building Society Bhd (MBSB) and Government-owned Bank Rakyat Malaysia Bhd (Bank Rakyat)

In Malaysia, it is very ambiguous about how large the shadow banking system is as they are not captured in any formal banking statistics. However, it makes some estimates put it easily several hundred billions the amount of money loaned out (Kaur, 2013). Public-listed Malaysia Building Society Bhd (MBSB) and Government-owned Bank Rakyat Malaysia Bhd (Bank Rakyat) are the lender among the more prominent shadow banks.

MBSB facing bled losses from 1998 to 2004. A previous opposition politician has report that the non-performing loans (NPL) of MBSB reached a high of RM4.45 billion in 2002 which occupied NPL ratio of 62%. It is in contrast while comparing with the banking average which is 7.4% in 2002. In 2012, the total reserves of MBSB only positive for the first time since 2001. The previous opposition lawmaker Tony Pua has said that MBSB is notorious due to giving huge loans to the failed Perwaja Steel which is the politically-connected company. The achievement of the current management seem to be cloud because of MBSB not only chequered in the past, but also due to the rampant allegation of mismanagement.

A total of 169 residents in the flats had lodged numerous complaints to the authorities pertaining to the irregular supply of water and frequent water disruption. “I will bring the matter up to my boss Chang Hong Seong when he returns from an overseas working trip. “In the meantime, I hope residents will bear with the inconvenience until a solution is found,” he said. A resident said both the MBSB and JBA had been passing the buck to each other each time they lodged a complaint. “It’s about time they stop pointing fingers and just get the work done so that we can enjoy uninterrupted water supply,” he said. This kind of pointing fingers to each other case can be said that company might not take good care of social responsibility. It might be conflict with the corporate social responsibility program.