Latest news with #AseanMediaDay
Borneo Post
a day ago
- Business
- Borneo Post
CIMB: Asean must tell better stories to attract global capital
Novan says Asean markets are filled with strong companies and promising ideas but these have not been highlighted effectively on the global stage. KUALA LUMPUR (July 23): Asean companies and economies must do a better job of telling their success stories if the region wants to attract more global capital, said CIMB Group Holdings Bhd (CIMB) chief executive officer Novan Amirudin. He said the region has strong fundamentals such as a young population, a rising middle class, fast gross domestic product (GDP) growth and steady inflows of foreign direct investment. However, these strengths have not been translated into global investor confidence because Asean has not promoted its investment potential well enough, according to Novan. 'We all know the benefits of Asean. But the one thing that Asean hasn't done enough is storytelling. 'There's a lot of investment proposition (in the region). But we haven't been telling enough stories about what is available here,' he said during the bank's Asean Media Day earlier this week at its headquarters. He said Asean markets are filled with strong companies and promising ideas but these have not been highlighted effectively on the global stage. Instead, he said capital continues to flow to the United States where companies are backed by compelling narratives. 'Malaysia has 30 million people and the US has 300 million, about ten times more. But the market cap of the US is 140 times larger than Bursa Malaysia. It just doesn't make sense,' he said. He said the large gap exists because a significant amount of capital is currently parked in the US market. He explained that the size of the US capital market is driven not just by economic strength but by compelling stories that attract long-term investments. Companies there are able to communicate their value, vision and potential that resonate with global investors. Novan noted that the US financial markets currently hold close to US$30 trillion in foreign-owned assets, with about US$6 trillion coming from East Asian governments and economies. He said the current geopolitical climate is pushing some of that capital to look for new destinations. 'We in Asean must make sure we are ready to capture our fair share of that capital,' he added. However, he warned that any story told to the market must be backed by strong delivery. 'The last thing we want is to promote stories we can't execute. That will drive capital away instead of attracting it,' he said.
Borneo Post
2 days ago
- Business
- Borneo Post
CIMB able to weather effects of rising tariffs
While tariffs are an external factor beyond the bank's control, Novan (left) says CIMB has levers in place to cushion potential impacts on its financial performance. KUALA LUMPUR (July 23): CIMB Group Holdings Bhd is confident it can weather the effects of rising tariffs and economic uncertainties through a mix of income diversification, operational efficiency, and risk management, said group chief executive officer Novan Amirudin. He said while tariffs are an external factor beyond the bank's control, it has levers in place to cushion potential impacts on its financial performance. 'We at CIMB have reconstituted our portfolio over the last few years. We've exited businesses that were very hard to operate. We've reduced our risk profile, we've reduced our credit losses, we've increased our coverage ratio. 'Our portfolio looks extremely strong and we are in a good place. And that would be one more area that can help our financial statement. 'Tariffs is one factor that would impact a company's or a bank's financials. But it's how we then choose to play with the different levers to offset that situation, and not every company is the same in that regard. 'We will do what it takes to make sure that we are resilient,' he said during the bank's Asean Media Day on Monday (July 21). He acknowledged that rising tariff could hurt economic growth which in turn may affect loan growth but stressed that the bank is not solely dependent on loans for income. 'Around 30 per cent of our income comes from non-interest sources, such as foreign exchange, payments, and advisory fees. This has been a key part of our Forward30 strategy to rebalance income streams,' he said. Novan added that even in a low interest rate environment where net interest margins are narrowing, CIMB is actively improving operational efficiency through tools such as technology and artificial intelligence. 'We are focused on becoming operationally efficient. That reduction in cost can help our bottom line,' he said. He also highlighted that tariff changes often lead to shifts in supply chains, which may affect different sectors in Asean unevenly. 'Some supply chains may move out of China and redirect exports to Asean. This could increase supply in some markets, like cars for example, and affect local players. We have to watch these shifts closely,' he said. He reiterated that tariffs are just one factor and cannot be viewed in isolation. 'There are many other things within our control. We cannot sit back and say because there are tariffs, our financials will get impacted. We will pivot our strategies and manage what we can,' he said. He said the bank will do what it takes to be nimble, to pivot its strategies, to look at its efficiencies, portfolio, credit losses, non-interest income, and cost of funds to mitigate impacts as a result of tariffs. asean CIMB Financing tariffs
Borneo Post
2 days ago
- Business
- Borneo Post
CIMB targets niche approach across Asean markets
Novan says CIMB is taking a disciplined, market-by-market approach by aiming to be a strong niche player instead of pursuing a 'universal player'. KUALA LUMPUR (July 23): CIMB Group Holdings Bhd (CIMB), which operates across ten markets in Asean, is sharpening its regional strategy by strengthening client support, expanding cross-border banking services and accelerating digital transformation to help businesses manage geopolitical risks and global supply chain shifts. To drive this effort, its group CEO Novan Amirudin said the bank is committed to building scale in high-growth markets such as the Philippines, Vietnam, Indonesia and Thailand by tailoring strategies that meet local needs and opportunities. He said CIMB is taking a disciplined, market-by-market approach by aiming to be a strong niche player instead of pursuing a 'universal player'. 'We are driven by our core purpose and value, and our core purpose is all about advancing customers and society. 'We will operate in all these different jurisdictions based on how we can contribute to customers and societies in that particular market. 'If we cannot play a meaningful role, then we need to find a different angle for us to play a meaningful role. 'We are always meticulously understanding where we can play our role and be dynamic,' he said during the bank's Asean Media Day earlier this week at its headquarters. He cited Malaysia as an example of a market where CIMB serves all customer segments including unbanked communities through its Touch 'n Go platform. In contrast, he said Thailand presents a different dynamic. Although GDP growth has been slower in that region, CIMB Thai continues to support Thai corporates expanding into other Asean markets like Malaysia and Singapore. For CIMB Thai, he said the bank's focus is on enabling outbound investment and facilitating cross-border capital flows. The goal, he said, is to improve returns by remaining a niche player rather than competing with larger banks. Meanwhile, for Philippines, CIMB grew its customer base to eight million, with six million of them acquired through strategic partnerships with e-commerce platforms. He said these partnerships helped the bank reach underserved segments faster than traditional methods would allow and the group is now adopting the same model in Malaysia and Indonesia to grow its reach. Novan added that the bank had started its digital journey in Vietnam and the Philippines about six years ago with one to two per cent of capital allocated to develop digital banks in those markets. 'In Vietnam and Philippines, we learn exactly how to operate and to expand digitally, whether is it digital internal processes, digital ways of reaching out to customers. And we are then implementing it as we digitise the entire CIMB group,' he said. Novan stressed that CIMB is not afraid to pivot its strategy when the market or competition shifts, and is always on the lookout for where it can add value by tailoring strategies for each market rather than using a one-size-fits-all approach. This focus on returns is part of the group's Forward30 strategy where capital is reallocated to areas with stronger growth potential. For example, Novan pointed to Islamic banking in Indonesia and digital opportunities in Malaysia. He said the combination of CIMB's eight million digital users through its CIMB Octo app and 30 million Touch 'n Go users in Malaysia presents untapped potential. 'That is one area that we can look to harness between the bank and the wallet, for example, that we haven't even started. There's a lot more upside in various pockets but we have to focus on the areas where we can win, where we can serve our customers and society better – that is what we are doing,' he said. asean CIMB Financing niche
New Straits Times
4 days ago
- Business
- New Straits Times
Tariff uncertainties to pose zero direct impact on CIMB's FY2026: Group CEO
KUALA LUMPUR: CIMB Group Holdings Bhd says the prevailing uncertainty surrounding global tariff policies will not have a direct impact on its financial performance for the financial year ending 2026 (FY2026). This will be due to the group's diversified income strategy and sustainable operational efficiency. CIMB Group chief executive officer Novan Amirudin said while global tariffs could potentially weigh on regional economic growth, the impact on the bank remains limited and largely depends on how the additional costs are distributed along the supply chain. "It depends on whether the costs are borne by producers in Asean, consumers in the United States, or absorbed by governments through incentives and supportive policies," he said during a fireside chat held in conjunction with CIMB's Asean Media Day today. He added that if restrictions on exports from China to the United States prompt manufacturers to relocate to Asean, any resulting oversupply could put pressure on local producers. "This situation could slow regional growth and indirectly affect the financial sector, as loan growth is closely tied to economic activity," he explained. Nevertheless, he said CIMB does not rely solely on interest income but has also strengthened its non-interest income streams. "About 30 per cent of the group's income comes from non-interest sources, including transaction fees, foreign exchange, payment solutions and advisory services. "These initiatives are aligned with our Forward 30 strategy, which emphasises revenue stream diversification," he said. On the recent Overnight Policy Rate (OPR) cut by Bank Negara Malaysia, he said the move impacts the lending rates offered to customers. CIMB also adjusted its deposit rates, such as fixed deposits, which are now at lower levels. "A lower OPR typically reduces funding costs. Therefore, the net impact on the bank depends on how much lending and deposit rates are adjusted. "If we are able to reduce deposit rates further, we can still maintain our net interest margins," he said.
