Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on October 28, 2015.

 

Khairussaleh-Ramli_FD_28Oct2015_theedgemarketsKUALA LUMPUR: RHB Capital Bhd (RHBCap) saw 1,812 of its employees taking part in its career transition scheme (CTS), which is part of the group’s rationalisation exercise.

In a statement yesterday, the country’s fourth-largest lender said it has accepted the application of its 1,812 employees who applied for the CTS, which was open to its permanent workforce in Malaysia, and completed on Sept 30.

“This represents 11.8% of the group’s Malaysian workforce of 15,348 and 13.1% of the group’s permanent workforce of 13,787 in Malaysia,” it said.

RHBCap said while the number of applications received was much bigger, it is only able to accept the applications of 1,812 employees, in view of its business requirements.

According to RHBCap, employees whose applications have been approved will be released in batches between November this year and January 2016.

“The CTS payout is estimated at RM309 million. The group expects to achieve an annual personnel cost rationalisation of approximately RM193 million,” it said.  

RHB Banking Group managing director Datuk Khairussaleh Ramli said the CTS, which is voluntary in nature, was introduced as part of its rationalisation exercise.  

He said the rapid changes to the business environment have made it necessary for the group to embark on such a transformation journey to implement its business strategies to ensure it remains relevant, competitive and resilient.

“These strategies have inevitably had implications on our current level of human capital relative to our business requirements.

“We would like to thank the outgoing employees for their contributions to the group throughout the years. We wish them all the best in their journey to take on new roles in their next career phase,” Khairussaleh said.

RHB Banking Group on Sept 2 announced the CTS to all permanent employees in Malaysia, in a bid to improve productivity.

The CTS came after CIMB Group Holdings Bhd and PT CIMB Niaga Tbk’s mutual separation scheme (MSS) exercise, which saw a total of 3,599 applications (1,891 from Malaysia and 1,708 from Indonesia) being approved, representing a rationalisation of 11.1% of the total workforce in Malaysia and Indonesia.

CIMB said the group will incur approximately RM443.3 million in MSS costs, while the resultant savings from the headcount reduction is estimated to be RM291.6 million per annum, which translates into an 18.2 months payback.

Shares in RHBCap gained three sen or 0.48% to close at RM6.26 yesterday, with a market capitalisation of RM16.26 billion.

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