Malayan Banking Bhd (Maybank), one of Malaysia’s largest banks, plans to transition its Cambodian branch into a subsidiary in a bid for larger market share in the Kingdom’s crowded Cambodian banking sector.
The bank, which opened as a branch in 1993, received a local incorporation licence from the National Bank of Cambodia in late March, allowing it to operate autonomously of its parent company in Malaysia.
Maybank has 11 branches in the Kingdom, according to its website.
The move could help Maybank focus more on domestic needs and growth, Nguon Sokha, spokeswoman and director general of the NBC, said yesterday.
“In this regard, Maybank will have more ability to expand and update their services and products to serve customers.
“When they become a subsidiary, it will help them to improve and enhance the effectiveness of their business operation as well as [increase] self-governance.”
Cambodia Public Bank has operated as a subsidiary of Malaysia’s Public Bank Bhd for 20 years and was established without first becoming a branch.
“I think this is something to show commitment for the long-term-investment in Cambodia,” Campu Bank’s country head, Phan Ying Tong, said yesterday. Maybank’s transition should allow it to focus more on untapped potential outside of Phnom Penh, he said.
There are nine foreign bank subsidiaries in Cambodia, Nguon Sokha said.
Despite the long-recognised saturation of Cambodia’s banking sector, Phan Ying Tong said Maybank did not pose a threat to Campu Bank because there was still room to grow in new areas of the market.
“The banks now try to expand business into some areas where they are not presently operating,” he said, adding that Campu has 23 branches in the Kingdom and plans to open another this year.
Maybank should be able to update its services after becoming a subsidiary, ACLEDA Bank CEO and president In Channy said
Jubely Pa, general director of Maybank in Cambodia, declined to comment ahead of an official announcement about the move today.
To contact the reporter on this story: May Kunmakara at email@example.com