The expansion, to start in December, will boost banking sector

Photo by: Tracey Shelton

Maybank's branch on Russian Boulevard. The company plans to expand locally, despite the credit crisis.

MALAYSIA-based Maybank has announced plans to  open nine more branches in Cambodia by 2011, despite a global credit crisis that is threatening other lending institutions in the Kingdom.

Jubely Bin Pa, general manager of Maybank Cambodia, told the Post the expansion will begin with a new Phnom Penh branch in December this year. Two additional branches will open in Siem Reap and Sihanoukville in 2009, he said.

"That is part of our ambition, to expand our business to be very competitive and to provide the best services to our customers," Jubely said. "We want to be the best competitor in this country."

He added that expanding during the global financial crisis was a good opportunity to build the bank's credit base at a time when the cost of growth was expected to be lower.

"The bank will spend US$1 million for this expansion plan," Jubely said.

Maybank began operations in Cambodia in 1993, with its first branch opening in Phnom Penh. A second branch, in the capital's Teuk Thla district, opened earlier this year.

The bank had total assets of more than US$83 million in 2006, Jubely said, adding that this year's figures are not yet available.

Datuk Seri Abdul Wahid Omar, chief executive officer of Maybank in Kuala Lumpur, said the latest expansion plans in Cambodia are part of the bank's strategy to grow its international network in Southeast Asia.

In Channy, CEO and president of ACLEDA Bank, said Maybank's expansion would make the banking sector in Cambodia stronger and more competitive.

"ACLEDA Bank wants to see more strong competitors because they will help us to provide more and better services to customers," he said.

"I think only banking services competition can make us strong and sustainable, because it is no longer practical in cost challenges," he added.

Phan Ho, deputy director general of the National Bank of Cambodia, also said that the expansion will help develop the Cambodian economy.

"I think it is a big contribution to [the] economy if banking services work well," said Phan Ho.