Islamic Bank of Asia 'excited' by bank rule changes in Malaysia: Asia One

By CONRAD TAN

SINGAPORE'S Islamic Bank of Asia (IB Asia) is 'very excited' by the news that Malaysia is opening up its banking sector further to foreign players and will consider taking a stake in an Islamic bank there or applying for a local banking licence in future, chief executive Vince Cook said yesterday.

'That's something we'd definitely be considering,' he told reporters here in a conference call to announce a new product for the bank.

'We've said consistently from the beginning that having some business and some representation in Malaysia is part of being a credible regional player in the Islamic banking space.'

Last Monday, Malaysian Prime Minister Najib Razak said the government would issue up to six new licences to foreign financial institutions this year, including two to foreign Islamic banks, as part of broader, long-term changes to the country's financial services sector.

He also said that foreigners would be allowed to own majority equity stakes of up to 70 per cent in some local financial institutions, including Islamic banks, compared with 49 per cent previously.

'Obviously, it's a bit early to see how those rule changes will be implemented and what it'll actually mean for us, but we're very excited by the prospect,' Mr Cook said.

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