19 Mar 2018
Signing of Memorandum of Understanding Between Cagamas Berhad and Pt Sarana Multigriya Finansial (Persero), Indonesia
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Yogyakarta, Indonesia 19 March 2018 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia signed a Memorandum of Understanding (MoU) with PT Sarana Multigriya Finansial [PERSERO] (SMF) of Indonesia today at a ceremony which was held in Yogyakarta, Indonesia.
President/Chief Executive Officer of Cagamas, Datuk Chung Chee Leong and President Director of SMF, Mr. Ananta Wiyogo signed the MoU which aims to enhance the mutually beneficial development of the secondary mortgage finance market in both countries. The ceremony was witnessed by the Directorate General of State Asset Management of Indonesia and representatives from the Ministry of Finance of the Republic of Indonesia and the Ministry of Public Works & Housing Indonesia, as well as senior officials of both organisations.
“The MoU marks an important milestone in the collaboration between Cagamas and SMF. Cagamas welcomes this initiative which aims to enhance the strategic cooperation between Malaysia and Indonesia, which includes amongst others, research and knowledge sharing related to housing finance. This initiative is in line with both institutions’ mandate to develop the secondary mortgage finance market,” said Datuk Chung.
Meanwhile, Mr. Wiyogo said, “This cooperation is a synergetic effort from both parties in conjunction with the coooperation between the members of the Asian Secondary Mortgage Market Association (ASMMA), especially in the development of the home mortgage financing market.”
The MoU encompasses the following initiatives:
The implementation of the MoU is aimed at paving the way for greater collaboration as well as enhancing interlinkages and business opportunities between both countries.
Both Cagamas and SMF are members of ASMMA which was inaugurated in September 2014. SMF has held the Chairmanship of ASMMA since 1 January 2018.
President/Chief Executive Officer of Cagamas, Datuk Chung Chee Leong and President Director of SMF, Mr. Ananta Wiyogo signed the MoU which aims to enhance the mutually beneficial development of the secondary mortgage finance market in both countries. The ceremony was witnessed by the Directorate General of State Asset Management of Indonesia and representatives from the Ministry of Finance of the Republic of Indonesia and the Ministry of Public Works & Housing Indonesia, as well as senior officials of both organisations.
“The MoU marks an important milestone in the collaboration between Cagamas and SMF. Cagamas welcomes this initiative which aims to enhance the strategic cooperation between Malaysia and Indonesia, which includes amongst others, research and knowledge sharing related to housing finance. This initiative is in line with both institutions’ mandate to develop the secondary mortgage finance market,” said Datuk Chung.
Meanwhile, Mr. Wiyogo said, “This cooperation is a synergetic effort from both parties in conjunction with the coooperation between the members of the Asian Secondary Mortgage Market Association (ASMMA), especially in the development of the home mortgage financing market.”
The MoU encompasses the following initiatives:
- Arrangements relating to financial instruments that can increase the stability of housing finance market.
- Mortgage Backed Securities (MBS) and other funding instruments to increase the funding flows from the capital market to the housing market.
- Monitoring of house prices as well as its implication towards housing finance
- Risk management programs to ensure the soundness of the MBS market.
- Islamic finance and its regulatory and supervisory framework that facilitates cross border cooperation
- Comparison of housing finance as well as the investor activities in Indonesia and Malaysia.
- Identification and reduction of obstacles for both private as well as public investment in securities issued by secondary mortgage finance companies.
The implementation of the MoU is aimed at paving the way for greater collaboration as well as enhancing interlinkages and business opportunities between both countries.
Both Cagamas and SMF are members of ASMMA which was inaugurated in September 2014. SMF has held the Chairmanship of ASMMA since 1 January 2018.
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