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23 July 2007
RHB aims for faster pace of growth in Singapore.
Malaysia fourth largest bank aims to double its volume of business in Singapore over the next 2 years. This will mean a doubling of the bank’s total asset size which stood at about S$1.84 billion.
Mr Lim, Country Head said “We are looking at a faster pace of growth in the immediate future. We have spent some effort on getting our infrastructure ready since 2004. The systems, procedures and controls put in place since then have led to higher growth for the bank’s Singapore business over the last 2 years.
The growth should come from all its business operations here such as retail and corporate banking and other fee-based transactions such as remittances.
RHB Bank has seven (7) branches in Singapore. About 60% of its business in Singapore is from corporate customers including SME’s, while remainder is generated from retail customers. This 60:40 ratio is likely to be sustained over the next 2 years. Mr Lim is speaking to BT on the sidelines of the BlueSky Finance Fair where RHB Bank has set up a booth in an effort to woo more SME customers here.
The SME landscape in Singapore has become increasing competitive as both local and foreign banks move in aggressively on the sector which is saturated than larger corporate and consumer banking sectors. RHB Bank is not going to engage in a price war in order to boost its market share in this sector.
We have to remain competitive, but we are not looking to go into a price war by undercutting the market. Everyone loses in the end that way said Mr Lim. Rather, the bank’s value proposition is to offer more personalized services by spending more time with each customer and understanding their needs, so as to formulate customized finance solutions.
As a Malaysian bank, it also feels it has a comparative advantage in serving Singapore companies interested in expanding to and investing in Malaysia. It invited promoters for the Nusajaya industrial park in the Iskanda Development Region in Johor to its booth at the BlueSky Fair so that Singapore SMEs can learn more about investment opportunities there.
Going forward, it also plans to take some SME customers to Nusajaya so that these SMEs can take a look at the opportunities for themselves. These are part of the bank’s effort to go the extra mile, said Mr Lim.
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