Tuesday, November 15, 2011

INDONESIA - BANKING - Bank Islam (Malaysia) To Expand To Indonesia, Bangladesh

PASIR PUTEH, Nov 15 (Bernama) -- Bank Islam Malaysia Bhd plans to expand its operations overseas especially to countries where there is a majority of Muslims.

Its Managing Director, Datuk Seri Zukri Samat, said the bank was keen to invest in Indonesia as the potential for the bank there was especially high considering that while Muslims formed the majority of its 240 million population, the number of them using Islamic based banks amounted to only three per cent. (source)


This compared with the 22 per cent rate enjoyed in Malaysia, he told reporters after officiating a motivational programme at the Kebangsaan Pasir Puteh (L) school here Tuesday.

He said the bank was however still looking out if there had been any official change particularly in the country's foreign equity ownership policy.

There is still some uncertainty as there are parties saying that the condition on foreign equity ownership would be reduced from 90 per cent to 50 per cent, he said.

Meanwhile, he said the bank was continuing to monitor the economic situation in the United States and Europe as their slowdown was expected to affect investments in the region.

Zukri said the bank was ready to allocate 12.8 per cent from its current RM30 billion assets for investment purpose.

He said it was planning to open up 122 more branches throughout the country in the next three years and aimed to market its products to more non-Muslims as well.

There are plans to open up three branches at least by end of this year, namely in Pasir Tumbuh, Kelantan; Rompin, Pahang; and one in Damansara, Selangor, which will bring to total 150 of its banks operating nationwide.

"We will be spending between RM700,000 and RM800,000 on per branch including the furnishings and office equipment."

He said the bank planned to also hold seminars and take up advertisement spaces in the Chinese language papers to attract more members from the community to subscribe to the bank's products.

Source : http://www.bernama.com/bernama/v5/newsbusiness.php?id=627011   - Nov 15, 2011

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