ID :
44009
Tue, 02/03/2009 - 20:06
Auther :
Shortlink :
http://m.oananews.org//node/44009
The shortlink copeid
NO JOB CUTS AT MALAYSIA'S SECOND LARGEST BANK
KUALA LUMPUR, Feb 3 (Bernama) -- Bumiputra-Commerce Holdings Bhd's group chief executive Nazir Razak has given an assurance that there would be no job cuts at the country's second largest bank.
"We are not looking at job cuts. It is not in our culture of doing business.
In this environment (slow economy), we want to keep our people. We are looking
at optimising our operations in many other ways," he told reporters after the
company's meeting with stakeholders here.
"However, we asked certain staff to take a salary cut. It was voluntary but
somehow or rather, they are all agreed to do so," he highlighted.
He said the cut was about 10 to 20 percent in the equity section of the
bank's business which includes CIMB-GK Pte Ltd, a wholly-owned subsidiary.
Asked if the group chief executive would consider a salary cut, Nazir said
that it would be announced at the same time as the results.
"Don't steal the thunder," he said in jest.
Asked as to whether the recent rates cut would affect the bank's margin, he
said that the new deposit rates might partly cover the impact.
On non-performing loans (NPLs), he said it was very much under control as
Malaysian borrowers seem fairly resilient. However, he said the bank had
built in a forecast of higher NPLs for 2009.
"We are fully anticipating some deterioration in asset quality. But we have
not seen that even until the end of 2008."
Nazir also expects a single digit loan growth or seven percent this year.
"Last year our loan book grew in the mid-teen, slightly higher than what we
had predicted in the beginning of the year.But this year, we predicting a much
lower growth rate," he explained.
The bank currently has about a RM30 billion (US$8.29 billion) corporate loan
exposure.
On the size of the upcoming stimulus package, Nazir said : "We spend too
much time talking about the second stimulus cheque. We are missing the point if
we just concentrate on writing a bigger cheque.
"I don't have an estimation. This is because I don't think it is terribly
important. It is up to the government to do the maths," he said.
According to Nazir, he considered the size of the stimulus package a simpler
issue when compared to pinning down the strategic framework for the country,
going forward.
"It is good if given the current environment, the government comes up with a
fairly comprehensive strategic plan as well as stimulus package," he said.
On the forecast for gross domestic product (GDP), he said that there would
be a downward revision from the current three percent projection.
"Based on what is happening now globally, we are clearly going to come up
with much a downwards revised figure," he highlighted.
Nazir said the International Monetary Fund (IMF) had come up with a new
forecast for the global economy, which he described as "severe."
On whether the new forecast includes Malaysia falling into recession, Nazir
said, "at the moment, yes."
"It is very dynamic. I don't think anyone can be so definitive on anything.
The environment is unprecedented with new facts and figures emerging by the
day," he added.
The IMF, he said, had cut global growth by half percent from 2.2 percent and
that would have a significant impact on certain sectors."
He noted that the group's official economic research position is that, there
would potentially be more interest rates cut in the second half of the year, but
it depends on developments.
-- BERNAMA
"We are not looking at job cuts. It is not in our culture of doing business.
In this environment (slow economy), we want to keep our people. We are looking
at optimising our operations in many other ways," he told reporters after the
company's meeting with stakeholders here.
"However, we asked certain staff to take a salary cut. It was voluntary but
somehow or rather, they are all agreed to do so," he highlighted.
He said the cut was about 10 to 20 percent in the equity section of the
bank's business which includes CIMB-GK Pte Ltd, a wholly-owned subsidiary.
Asked if the group chief executive would consider a salary cut, Nazir said
that it would be announced at the same time as the results.
"Don't steal the thunder," he said in jest.
Asked as to whether the recent rates cut would affect the bank's margin, he
said that the new deposit rates might partly cover the impact.
On non-performing loans (NPLs), he said it was very much under control as
Malaysian borrowers seem fairly resilient. However, he said the bank had
built in a forecast of higher NPLs for 2009.
"We are fully anticipating some deterioration in asset quality. But we have
not seen that even until the end of 2008."
Nazir also expects a single digit loan growth or seven percent this year.
"Last year our loan book grew in the mid-teen, slightly higher than what we
had predicted in the beginning of the year.But this year, we predicting a much
lower growth rate," he explained.
The bank currently has about a RM30 billion (US$8.29 billion) corporate loan
exposure.
On the size of the upcoming stimulus package, Nazir said : "We spend too
much time talking about the second stimulus cheque. We are missing the point if
we just concentrate on writing a bigger cheque.
"I don't have an estimation. This is because I don't think it is terribly
important. It is up to the government to do the maths," he said.
According to Nazir, he considered the size of the stimulus package a simpler
issue when compared to pinning down the strategic framework for the country,
going forward.
"It is good if given the current environment, the government comes up with a
fairly comprehensive strategic plan as well as stimulus package," he said.
On the forecast for gross domestic product (GDP), he said that there would
be a downward revision from the current three percent projection.
"Based on what is happening now globally, we are clearly going to come up
with much a downwards revised figure," he highlighted.
Nazir said the International Monetary Fund (IMF) had come up with a new
forecast for the global economy, which he described as "severe."
On whether the new forecast includes Malaysia falling into recession, Nazir
said, "at the moment, yes."
"It is very dynamic. I don't think anyone can be so definitive on anything.
The environment is unprecedented with new facts and figures emerging by the
day," he added.
The IMF, he said, had cut global growth by half percent from 2.2 percent and
that would have a significant impact on certain sectors."
He noted that the group's official economic research position is that, there
would potentially be more interest rates cut in the second half of the year, but
it depends on developments.
-- BERNAMA
