I was mesmerised by his transformation in investment philosophy wherein purpose takes precedence over profits. If we care to reflect on the purpose and objectives of DFIs, one of the strategic thrusts is to support the government’s strategic priority areas. When economic outcomes for funding are distorted by unequal asset allocation (collateral), the noble objectives of purpose and values may not be realised. Adopting a heavy weightage on collateral-based lending may be easier from an administrative perspective but would not meet the purpose objective. The purpose of this letter is not to point fingers at anyone.

Source: The Star May 20, 2021 00:45 UTC