Once arrogant and snooty, now our MAS has to go begging in KL for more Malaysian banks to set up shop here. Some more got no face, have to do so quietly without the knowledge of Bank Negara. I wonder whether are they there to promote our "tax dodgers hub" to the weathy Malaysians? Lets see whether 154th will report on this.
http://www.themalaysianinsider.com/...singapore-woos-kl-banks-to-widen-capital-base
Singapore woos KL banks to widen capital base
KUALA LUMPUR, Dec 31 — While approving its leading DBS Bank to raise capital through a rights issue, Singapore’s financial authorities have been quietly wooing Malaysian banks to set up shop in the island state at a time of evaporating capital markets and melting bank balance sheets.
Local financial industry sources said the Singaporeans have been actively courting Malaysian banks to shore up the region’s leading financial hub’s faltering capital markets as several banks close shop or merge in the current meltdown.
Four out of Malaysia’s nine financial groups — Maybank, CIMB, RHB and Hong Leong banking groups — are already in Singapore. The others are Affin, Alliance, Ambank, EON and Public Bank. However, Malaysian banks that want to expand abroad need permission from central bank, Bank Negara Malaysia.
“They came in quietly and pitched their country to the local bankers but didn’t realise that Bank Negara has to approve any expansion,” a source told The Malaysian Insider.
Banks in Malaysia have been largely insulated from the meltdown due to Bank Negara’s strict supervision after the Asian financial crisis a decade ago. Mergers, acquisitions under the banking industry’s consolidation plan has also strengthened the banks apart from requirements for local incorporation for foreign banks.
But Malaysians banks will also be hit by the weak capital markets and lower fees in the looming recession and global credit crisis although they are seen to be flush with cash as they were not exposed to the US sub-prime mortgage crisis.
“Singapore sees that Malaysian banks have the cash and have made it attractive to be there. However, Bank Negara is strict and careful to allow any overseas expansion,” another source said.
The island state’s DBS Group Holdings last week said it planned to raise about US$4 billion (RM14 billion) in a rights issue to “capture opportunities to entrench our market position in key Asian markets and confidently weather the economic uncertainties ahead.”
Chief executive Richard Stanley said in a statement that the capital from the rights issue was not meant for mergers and acquisitions or designed for a “clean-up of our balance sheet.”
Analysts from Credit Suisse cited several possible reasons for the rights issue, saying the move could be intended to plug a potential fourth-quarter loss, to fund growth of Singapore dollar-denominated loans, or to ward off pressure from the Monetary Authority of Singapore.
DBS said last month that third-quarter net profit fell 38 per cent year-on-year to US$379 million, as market-related income took a hit from the global financial crisis and bigger provisions.
Last month, the bank said it was shedding 900 staff, both in Singapore and in Hong Kong, to trim costs during the credit crisis. It was the first major Singaporean firm to announce job cuts of such magnitude.
The bank will offer 760.48 million new ordinary shares at US$5.42 each, on the basis of one rights share for every two shares held on Dec 31, said DBS.
http://www.themalaysianinsider.com/...singapore-woos-kl-banks-to-widen-capital-base
Singapore woos KL banks to widen capital base
KUALA LUMPUR, Dec 31 — While approving its leading DBS Bank to raise capital through a rights issue, Singapore’s financial authorities have been quietly wooing Malaysian banks to set up shop in the island state at a time of evaporating capital markets and melting bank balance sheets.
Local financial industry sources said the Singaporeans have been actively courting Malaysian banks to shore up the region’s leading financial hub’s faltering capital markets as several banks close shop or merge in the current meltdown.
Four out of Malaysia’s nine financial groups — Maybank, CIMB, RHB and Hong Leong banking groups — are already in Singapore. The others are Affin, Alliance, Ambank, EON and Public Bank. However, Malaysian banks that want to expand abroad need permission from central bank, Bank Negara Malaysia.
“They came in quietly and pitched their country to the local bankers but didn’t realise that Bank Negara has to approve any expansion,” a source told The Malaysian Insider.
Banks in Malaysia have been largely insulated from the meltdown due to Bank Negara’s strict supervision after the Asian financial crisis a decade ago. Mergers, acquisitions under the banking industry’s consolidation plan has also strengthened the banks apart from requirements for local incorporation for foreign banks.
But Malaysians banks will also be hit by the weak capital markets and lower fees in the looming recession and global credit crisis although they are seen to be flush with cash as they were not exposed to the US sub-prime mortgage crisis.
“Singapore sees that Malaysian banks have the cash and have made it attractive to be there. However, Bank Negara is strict and careful to allow any overseas expansion,” another source said.
The island state’s DBS Group Holdings last week said it planned to raise about US$4 billion (RM14 billion) in a rights issue to “capture opportunities to entrench our market position in key Asian markets and confidently weather the economic uncertainties ahead.”
Chief executive Richard Stanley said in a statement that the capital from the rights issue was not meant for mergers and acquisitions or designed for a “clean-up of our balance sheet.”
Analysts from Credit Suisse cited several possible reasons for the rights issue, saying the move could be intended to plug a potential fourth-quarter loss, to fund growth of Singapore dollar-denominated loans, or to ward off pressure from the Monetary Authority of Singapore.
DBS said last month that third-quarter net profit fell 38 per cent year-on-year to US$379 million, as market-related income took a hit from the global financial crisis and bigger provisions.
Last month, the bank said it was shedding 900 staff, both in Singapore and in Hong Kong, to trim costs during the credit crisis. It was the first major Singaporean firm to announce job cuts of such magnitude.
The bank will offer 760.48 million new ordinary shares at US$5.42 each, on the basis of one rights share for every two shares held on Dec 31, said DBS.
