SINGAPORE'S business community was in shock yesterday after news that DBS Bank chief executive officer Richard Stanley is ill with leukaemia and will be out of action for three to six months.

The 48-year-old American, who has been in the job for only nine months, had his diagnosis confirmed yesterday and will begin chemotherapy immediately.

An emergency board meeting on Wednesday night decided that chairman Koh Boon Hwee would take the reins, with the help of the DBS management committee.

There was much speculation about South-east Asia's biggest bank from early yesterday, after DBS made the unusual move of suspending share trading from 9am.

The news of Mr Stanley's illness was released at 10.34am via the Singapore Exchange website.

Around the same time, Mr Koh broke the news to the bank's 15,000 staff in Singapore and across the region via an e-mailed memo.

Employees were stunned, because Mr Stanley had been at work right up to last week. He had just finished a series of investor meetings in Singapore, Hong Kong, the United States and Europe, centred on the bank's successful $4 billion rights issue.

The discovery of his illness was sudden. What started out as flu-like symptoms over the Chinese New Year weekend ended with the diagnosis yesterday morning of acute myelogenous leukaemia, a fast-spreading blood cancer.

Mr Stanley is married to Singaporean Koh Li Peng and they have three children aged 20, 19 and seven.

DBS staff who visited him on Wednesday said he was in good spirits.

Mr Koh said in his memo that doctors believe Mr Stanley's condition is treatable and full remission is possible. But staff were asked to avoid further visits while treatment is ongoing.

Mr Koh also said of Mr Stanley: 'Being the fighter that he is, I expect him to overcome the illness and return to DBS.'

Initial market reaction to the news was muted. When trading resumed after 11.30am, the share price weakened marginally before rising. DBS shares ended 11 cents higher at $9.10.

Mr Stanley's absence comes at a time when DBS is dealing with the challenges thrown up by the financial crisis.

Still, analysts were not too concerned that its business activity would suffer. Mr Koh helmed the bank between September 2007 and last April after former CEO Jackson Tai's resignation and before Mr Stanley came on board.

'Koh Boon Hwee has always been running the show and clients won't pull back,' said a banker involved in the rights issue.

Meanwhile Mr Koh had encouraging words for staff, writing: 'Rich has asked me to tell you that he believes that crises make or break people.

'Just as Rich is facing his illness with great courage, I urge all of us at DBS to rally together to take the bank forward... This is what Rich wants all of us to do and I want us all to do him proud.'

DBS spokesman Karen Ngui said of Mr Stanley: 'He was encouraging us to make him proud and determined to beat this, and he wants to get back to work as soon as possible.'

gabrielc@sph.com.sg

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