KUALA LUMPUR (May 17): Bank Negara Malaysia (BNM) said five foreign insurers in Malaysia are at a “significant stage” of discussion with domestic investors to take up at least 30% stakes in their businesses. This is in relation to the country's new rules on foreign insurer ownership.

BNM Governor Tan Sri Muhammad Ibrahim said a sixth foreign insurer has also started negotiations with domestic investors.

"As we are nearing the deadline, we will make announcements,” Muhammad said at a press briefing on Malaysia's first quarter economic performance here today.

Malaysia requires foreign insurers in the country to have at least 30% Malaysian ownership in their local businesses by the end of June this year, via stake sales or local initial public offerings.

In February this year, Bloomberg reported that Malaysia's Employees Provident Fund had said it was in talks to buy a stake in the Malaysian unit of Singapore's Great Eastern Holdings Ltd. Prudential and Tokio Marine are also in discussions with bankers, according to the report.