"In a laissez-faire economy, an efficient financial intermediation system mobilises and allocates scarce resources towards activities that would optimise the rates of return. On this basis, the commercially-driven and profit-maximising banking institutions would often tend to take a short-term view and consider solely the private benefit of a project, at the expense of the potential long-term social benefit that could be derived from financing a particular project." b) Examine the two major DFIs that are instrumental towards the development and growth of the Small Medium Enterprises (SMEs) in Malaysia. (8 marks)

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In Malaysia there are two major Development Financial Institutions DFIs that play a crucial role in the development and growth of Small and Medium Ent... View the full answer