KUALA LUMPUR: Malayan Banking Bhd (Maybank), Southeast Asia’s fourth largest bank by assets, has opened a branch in Myanmar, making it the first Malaysian bank to do so.
This follows the granting of the final licence to commence operations from the Central Bank of Myanmar to Maybank last week.
The Central Bank on Oct 1, 2014 awarded a banking licence to Maybank as part of its move to liberalise the banking sector in the country.
With a registered capital of US$75 million (RM288.75 million), Maybank’s branch in Yangon will operate with a team comprising mainly Myanmar nationals.
Located in the commercial district of Yangon, the new branch will strengthen the group’s international footprint which comprises some 2,400 offices in 20 countries worldwide, including all 10 Asean nations.
In a statement yesterday, Maybank said the new branch will serve wholesale and corporate clients as well as domestic banks in Myanmar with a range of services such as deposit accounts, working capital financing, cash management, treasury and capital market solutions.
It will leverage on its expertise in financing of power, utilities, oil and gas as well as the telecommunications sectors, which are also priority growth areas to cater to Myanmar’s immediate needs.
“Since 1994, Maybank has operated a representative office in Myanmar and helped arrange financing for key infrastructure projects such as airports, telecommunications and gas pipelines,” Maybank group chief strategy officer Michael Foong said in the statement.
Foong said with the foreign banking licence, Maybank will now be able to play a bigger role in Myanmar and participate in previously restricted financial services, including providing loans to foreign companies as well as domestic banks.
“We intend to build strong partnerships with domestic banks in the areas of international trade, interbank and capital markets, as well as draw on our regional assets and capabilities to help Myanmar’s growth leapfrog in the region.”
This article first appeared in digitaledge Daily, on August 4, 2015.