CIMB: High net-worth Malaysians growing investments abroad

An emerging trend is apparent in more Malaysian investors seeking their fortunes offshore, said Datuk Seri Nazir Razak, group chief executive of CIMB Group, yesterday.

“In the past 18 months, we have seen a lot of retail investors from all over Malaysia investing offshore through the CIMB network,” he told reporters after his opening speech at the CIMB Private Banking Conference 2010, which was attended by some 400 high net-worth investors.

CIMB is the nation’s second-largest lender and the first full-service private bank and wealth management centre. Its private banking division currently manages RM7 billion domestically from high net worth investors, and targets to achieve RM10 billion in three years.

“This growth area may not make Bursa Malaysia terribly happy, but the top offshore destinations are the US and other Asean countries, including Singapore,” he said.

Reinforcing his stand, “Bullish on Asean, even when cautious on the world”, Nazir has also been taking steps to enhance retail investor participation in the local market.

“We have revived the CIMB Securities brand, and aim to increase the remisier base across the region. We continue to expand our retail operations and are focusing on Malaysia. We do not target global funds,” Nazir said.

CIMB is hoping to increase the number of remisiers, dealers and equity relationship officers from 250 to 1,000 regionally over the next 18 months.

Meanwhile, Nazir also expressed concern over developments at SJ Asset Management (SJAM), which was in the spotlight recently due to concerns about clients’ assets and integrity of records maintained by the company.

“SJAM was one of the approved fund managers for our private bankers to recommend to clients. Some of our clients have money invested in SJAM. We are monitoring the situation and trying to engage the Securities Commission to find out the latest developments,” he said. Nazir did not comment on CIMB’s level of exposure to SJAM.

The bank looks to be bustling with activity this year.

In regard to the listing of CIMB on the Stock Exchange of Thailand, Nazir said it would likely take place by year-end, as the political situation was rapidly clearing in that country. CIMB owns 93% of its Thai counterpart.

Last month, the Stock Exchange of Thailand announced that the listing would be delayed due to further investigation of legal issues.

On the local front, the bank will introduce a new product, callable bull and bear certificates, on Bursa Malaysia Securities this month.

As of yesterday, CIMB customers can now withdraw cash from any of the 3,800 ATMs in Malaysia, Indonesia, Singapore and Thailand free of charge. CIMB also has an online trading proposition, which will allow certain customers to trade online without brokerage charges.

CIMB’s stock closed unchanged at RM7 yesterday, amidst a slight upturn on Bursa Malaysia Securities.


This article appeared in The Edge Financial Daily, July 8, 2010.