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HSBC not keen on stake
HSBC Bank Malaysia is not keen to acquire a stake in a local bank, and instead plans to open up to 15 more branches. The bank also affirmed its focus on organic growth and getting its own Islamic banking license.
More mergers, please
CIMB Group CEO Nazir Razak called for Bank Negara to accelerate mergers of local banks to prepare them for trade liberalization and competition. He suggested that Bank Negara lift shareholders’ funds to RM10 billion (US$3.5 billion) should banks intend to remain significant market players.
On regional mergers, Nazir said Asean regulators could also collectively aid in the mergers of financial institutions in Asean.
Ummah exhibition
The 50th national level Tilawah Al Quran at the Malacca International Trade Center has been launched. The event will see exhibitions set up to educate the public on Islamic banking, Takaful and Tabung Haji.
The exhibition was to end on the 24th July.
Public profits up
Public Bank posted net profits of RM1 billion (US$289 million), marking an 18% hike. Net interest income and net income from Islamic banking increased by 12% to RM1.77 billion (US$513 million), on the back of continued healthy expansions in the bank’s lending and deposit-taking businesses and strong asset quality.
Room for more
Salman Younis, managing director of Kuwait Finance House Malaysia, believes that there is room for more than one international Islamic banking hub.
TM converts Tekad Mercu bonds
Telekom Malaysia closed its exchange offer of RM3 billion (US$869 million) in Islamic stapled income securities, converting its existing RM3 billion (US$869 million) Tekad Mercu bonds.
Citi Malaysia acted as the deal’s principal adviser and sole lead arranger for the RM2.92 billion (US$846 million) Islamic Stapled Income Securities and Exchange Offer.
Islamic real estate fund
AmanahRaya Investment Bank and Kuwait Finance House Labuan will set up a US$200 million Islamic real estate fund called Al-Nibras to tap into the property and infrastructure sector. The funds are set to invest in properties in Malaysia, Singapore, Indonesia and China to achieve optimal investments.
Alam Maritim raises debt
Alam Maritim Resources raised RM600 million (US$174 million) in Islamic securities, jointly arranged by Aseambankers Malaysia and Standard Chartered Bank Malaysia.
MM2H Hijrah-I
Kuwait Finance House Malaysia launched the MM2H Hijrah-I program along with Tourism Malaysia. The program was designed to enable people in the GCC countries to choose Malaysia as their second home and at the same time, invest in Malaysian property, with full access to banking and other financial facilities required for their stay in Malaysia.
ECM to advise
Credit Suisse Singapore and ECM Libra Avenue Securities were appointed as advisers to Tamco Corporate Holdings on the planned disposal of its core switch gear-manufacturing operations to a foreign investor. Tamco was, however, still awaiting a definitive response from both parties.
The move would also have no immediate impact on the group’s A3-rated RM80 million (US$23 million) Bai Bithaman Ajil Serial bonds.
Islamic Select Bond
Public Mutual launched two new funds, the Public Far-East Property & Resorts Fund and the Public Islamic Select Bond Fund. Up to 80% of the fund’s net asset value will be invested in selected regional markets including Japan, Australia, Hong Kong, China, Singapore, New Zealand, Indonesia and selected markets.
Passing through
Japan could use Malaysia as a gateway to tap into the Asian Islamic banking and financial market, stressed Rafidah Aziz Malaysian Minister of International Trade and Industry.
TAKAFUL
More loans from Mara
Majlis Amanah Rakyat (Mara) expected to overshoot its initial target of RM200 million (US$57.43 million) worth of loans to bumiputera entrepreneurs this year. This was revealed at the signing of a memorandum of understanding between Takaful Ikhlas and Mara. Takaful Ikhlas would provide financial protection to Mara and its borrowers in the event of death or permanent disablement.
Family Takaful from HLTM
Hong Leong Tokio Marine Takaful launched its new regular contribution investment-linked Family Takaful scheme, i-Save, offering both protection and savings. Participants would receive coverage benefits for death or total permanent disability, as well as the full value of units.
The contribution amount for the scheme would start from RM100 (US$25), with participants having the flexibility to opt for the sum covered to be between five and 50 times their annual contribution, depending on age.
HSBC on a roll
THE commercial banking arm of HSBC Bank Malaysia and HSBC Amanah Takaful Malaysia targeted RM11 million (US$3.15 million) in premiums within three years for its new SME Flexi-Cover Plus package.
SME Flexi-Cover Plus was designed to be a simple and cost-effective business package for SME customers, with fire, crime, asset and liability protection.
Risky business? Not here
Standard & Poor’s (S&P) believes that competitive pressure — mainly in pricing — would affect the Malaysian market earlier than the GCC, especially in general Takaful.
TI’s Royal expectations
Takaful Ikhlas submitted an application to Bank Negara Malaysia and Permodalan Nasional (PNB) to expand its operations to Saudi Arabia. Takaful Ikhlas CEO Syed Moheeb Syed Kamarulzaman said it was also exploring further expansion in other countries with a large Muslim population and those with mature financial markets. |
