TEFD: What are your expectations for 2012, for your bank and the industry?
Chia: With the turmoil in Europe, the market is increasingly cautious. Growth will be somewhat muted in this region. With that, Malaysia’s exports will invariably moderate, especially as China slows down as well. Increasingly there will be heightened regulatory standards on personal borrowings and a focus on responsible financing. Clarity and simplicity will be the emphasis for banks moving forward. At Hong Leong Bank, I want to ensure continuous dialogue with our customers and communities in which we operate, providing advice and superior service, and maintaining the consistency in our relationship with the people in the business.
What impact, if any, do you expect from the euro crisis?
With the euro crisis, US dollar liquidity is getting tighter. Malaysia’s exports to Europe is about 12% of our total exports. Exporters in Malaysia should be vigilant with the European counter-party risks, settlement risks and tight cash flows in the eurozone.
Will Bank Negara Malaysia’s recent tightening of consumer borrowings have an impact?
Over the last decade, banks have been increasing lending to customers, and as a result, per capita debt has escalated. That is expected — as economic wealth increases, individual borrowings are also augmented to enjoy better standards of living. Over the last few years, excess liquidity and fund flows into the region, combined with the low interest rate environment have brought down the pricing of debt to very low levels. As a result, the price of real estate has increased. However, sentiment has turned cautious in the region coupled with the ongoing European debt crisis. China’s real estate is also slowing and the recent Singapore tightening measures reflect the cautious stance of the regulators. I think the overall mood is cautiously opportunistic for long-term players and the speculators, they will slow down.
What is your banking group’s plans and focus for the coming year?
Optimising efficiency and risk reward dynamics will be high on the agenda. And with the excess liquidity in the system, wealth management products and offerings will be important. Sound underwriting and disciplined expansion are key focus. With a tight nexus between stability, growth and value creation, our role in wealth creation, and generating optimal growth continues to be important.
What is your wish list for 2012?
For more responsible and bold leadership globally — to do the right things, to avoid catastrophes for the global financial markets. Also, a commitment to long-term positioning of the global banking system to sustain growth from the US and Europe to Asia.
The 2012 CEO Outlook series started on Dec 19 and will run every day into January next year. The Edge Financial Daily has so far interviewed Geoffrey Briscoe of BMW Malaysia, Tan Sri Teh Hong Piow of Public Bank Bhd, Jeffrey Chew of OCBC Bank (M) Bhd and Osman Morad of Standard Chartered Bank Malaysia Bhd. If you’ve missed them, please read our back issues on iPad for free.
This article appeared in The Edge Financial Daily, December 23, 2011.
Chia: With the turmoil in Europe, the market is increasingly cautious. Growth will be somewhat muted in this region. With that, Malaysia’s exports will invariably moderate, especially as China slows down as well. Increasingly there will be heightened regulatory standards on personal borrowings and a focus on responsible financing. Clarity and simplicity will be the emphasis for banks moving forward. At Hong Leong Bank, I want to ensure continuous dialogue with our customers and communities in which we operate, providing advice and superior service, and maintaining the consistency in our relationship with the people in the business.
What impact, if any, do you expect from the euro crisis?
With the euro crisis, US dollar liquidity is getting tighter. Malaysia’s exports to Europe is about 12% of our total exports. Exporters in Malaysia should be vigilant with the European counter-party risks, settlement risks and tight cash flows in the eurozone.
Will Bank Negara Malaysia’s recent tightening of consumer borrowings have an impact?
Over the last decade, banks have been increasing lending to customers, and as a result, per capita debt has escalated. That is expected — as economic wealth increases, individual borrowings are also augmented to enjoy better standards of living. Over the last few years, excess liquidity and fund flows into the region, combined with the low interest rate environment have brought down the pricing of debt to very low levels. As a result, the price of real estate has increased. However, sentiment has turned cautious in the region coupled with the ongoing European debt crisis. China’s real estate is also slowing and the recent Singapore tightening measures reflect the cautious stance of the regulators. I think the overall mood is cautiously opportunistic for long-term players and the speculators, they will slow down.
Chia says clarity and simplicity will be the emphasis for banks moving forward.
What is your banking group’s plans and focus for the coming year?
Optimising efficiency and risk reward dynamics will be high on the agenda. And with the excess liquidity in the system, wealth management products and offerings will be important. Sound underwriting and disciplined expansion are key focus. With a tight nexus between stability, growth and value creation, our role in wealth creation, and generating optimal growth continues to be important.
What is your wish list for 2012?
For more responsible and bold leadership globally — to do the right things, to avoid catastrophes for the global financial markets. Also, a commitment to long-term positioning of the global banking system to sustain growth from the US and Europe to Asia.
The 2012 CEO Outlook series started on Dec 19 and will run every day into January next year. The Edge Financial Daily has so far interviewed Geoffrey Briscoe of BMW Malaysia, Tan Sri Teh Hong Piow of Public Bank Bhd, Jeffrey Chew of OCBC Bank (M) Bhd and Osman Morad of Standard Chartered Bank Malaysia Bhd. If you’ve missed them, please read our back issues on iPad for free.
This article appeared in The Edge Financial Daily, December 23, 2011.
