KUALA LUMPUR (Aug 19): CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak has warned that it will be difficult times for the banking and financial markets over the next one to two years.

On its part, the banking group is bracing itself for the economic and political headwinds ahead. The group has done well over the years and grown fast to be where it is today, he pointed out.

"But now it is time to take stock on where we are today because of the new environment and because the environment changes," Nazir told a packed conference room at the "Bumiputera of Tomorrow" programme here today.

"You can have plans for one to five years, but you must always be sensitive to the environment. The fact is that for the banking and financial markets, in the next one to two years – these are going to be difficult times.

"So we have chosen to reduce our cost structures very early on. (In terms of) manpower, we have let go about 4,000 people in Malaysia and Indonesia," he said.

"We will make sure that we weather the current financial storm that is going on not just in Malaysia, but in the region," Nazir added.

Nazir said Malaysia also needs to recalibrate, as the country is going through its most difficult times both in terms of political and economic.

It is also time to review and reset the way the country is going forward, he stressed, noting that this includes making sure more opportunities are created for businesses.

"How business is conducted going forward, how the government implements its policies, how the government is too involved in businesses.

"I have asked the government that we should set up a National Consultative Council 2, in the same way we did back in 1969 and 1970," he added.

Nazir said the situation in the country today "is that serious, the disconnect between the population and the government".

He said that it is time to sit down and get the civil society, professional bodies including  leaders themselves to get together and see what the future holds for the country.

"What the country needs to do today to make those structural changes.

"The best possible future for the country and our children. And God willing, someone will listen," he said.