Asean members stand to gain amid US-China trade curbs: Maybank CEO

SINGAPORE - Asean members stand to benefit as restrictions on bilateral trade between the United States and China continue to draw certain production functions away from China, said Maybank group president and chief executive Khairussaleh Ramli on Tuesday.

With more room for growth emerging, the Malaysia-listed banking group in 2022 announced that it is investing up to RM4.5 billion (S$1.3 billion) over five years as part of a wider strategy to expand its business presence and technological capabilities in the region.

At its annual investor conference here on Tuesday, clients and guests of the Malaysian banking group were especially eager to hear about opportunities to invest in Indonesia and what to expect in the rest of Asean.

Many asked about the weakening Chinese economy and how tensions between China and the US would impact the region.

Mr Khairussaleh said the keen interest from clients underscored the bank’s prowess in Asean, where it has a presence in all 10 countries and offices in Malaysia, Singapore and Indonesia.

“As a longstanding champion and one of the most vocal voices for the Asean opportunity, Maybank has been a bridge bringing the world to Asean, and Asean to the world,” Mr Khairussaleh told the 1,000 attendees of the 10th Maybank Invest Asean conference in his opening address.

Singapore, Maybank’s largest market outside Malaysia, is expected to contribute strongly to the group’s expansion plans.

Mr Muzaffar Hisham, group chief executive of global banking at Maybank, said a significant amount of wealth has accumulated in Singapore over the past few years.

Aside from assisting wealthy families in Malaysia seeking to set up family office structures here, “we are leveraging our network across Asean to bring ideas and investment opportunities from the region to also help clients here grow their wealth”, he said.

Maybank Investment Banking Group chief executive Michael Oh-Lau said that opportunities are emerging in Indonesia, where the number of initial public offerings (IPO) has picked up, particularly among resource-based companies and those operating along the electric vehicle supply chain.

In June, Indonesian copper miner Amman Mineral Internasional raised 10.73 trillion rupiah (S$960 million) in the country’s biggest IPO, while VKTR Teknologi Mobilitas hauled in 875 billion rupiah to execute a plan to build electric buses and trucks in Indonesia with Chinese partner BYD.

Mr Oh-Lau added: “We also see a resurgence of consumer staple listings in countries like Malaysia. As stability returns in the second half of the year, we should see more companies coming to market and things getting more exciting.”

This would come after Malaysia Prime Minister Anwar Ibrahim on Monday announced measures to expedite the process of listing and reduce time to market. He also announced a reduction in stamp duty charges for shares traded on Bursa Malaysia, which will make the Malaysian stock market more competitive to investors.

“In Singapore, wealth management is one area where we are well positioned to compete. We are also ahead in providing syariah-compliant wealth solutions to our Malaysian and Indonesian clientele based out of Singapore,” said Mr Khairussaleh.

Having been in Singapore for 60 years and armed with a full banking licence, Maybank Singapore has also been a key provider of a diverse range of cross-border services across the Causeway to both Singaporeans and Malaysians.

These include free instant fund transfers between Maybank accounts in Singapore and Malaysia at competitive exchange rates, discounts and privileges when using Maybank cards as well as free cash withdrawals at ATMs in both countries.

“Singapore customers who are keen to invest in Malaysia properties can be referred seamlessly to Maybank Malaysia for home financing at competitive rates. Meanwhile, Malaysians working in Singapore are able to obtain loans in Malaysia, as we have the ability to share credit data between both sides,” said Mr Khairussaleh.