MAYBANK IN TALKS TO OPEN INDIA BRANCH
Lender intends to enter country directly without going through BII, says Mustapa
MALAYSIA’S largest banking group Malayan Banking Bhd (Maybank) has started negotiations with regulators in India to open its own branch in the country.
Currently, Maybank’s subsidiary, Bank Internasional Indonesia (BII), has a branch in Mumbai.
BII opened its first branch in India in 1995, but stopped operating in 2008. It then resumed operations in 2013.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Maybank intended to enter India directly without going through BII.
Besides Indonesia, Maybank also has branches in Singapore, the Philippines, Thailand, China, Cambodia, Laos, Myanmar, Hong Kong and Brunei.
Mustapa said Malaysian companies had achieved various successes in India. This includes being the first to build highways in the country in 1996, first monorail in Mumbai (by Scomi) and doing its first integrated housing project there.
He said the International Monetary Fund predicted the Indian economy would grow an average 7.5 per cent annually until 2022.
“The open economy policy that was introduced by Prime Minister Narendra Modi, coupled with various investment-friendly reforms, including the new Goods and Services Tax regime and more friendly investment policies, make it suitable for investment.”
“The close relationship between Prime Minister Datuk Seri Najib Razak and Modi also opens the path and boosts both bilateral ties among the countries for mutual benefit,” said Mustapa at a press conference, here, yesterday.
He said India is a potential market with a population of 1.3 billion. Out of this, more than 200 million are from the middle class with a high number of young talents in the information technology sector.
During a roundtable meeting attended by 60 companies in Mumbai yesterday, Mustapa also invited the country’s investors to further increase their investment in Malaysia.
As of last year, India was Malaysia’s ninth largest trading partner with trade value between January and November last year exceeding US$13 billion (RM50.96 billion). This is targeted to reach US$15 billion by 2020.
Mustapa is part of Najib’s delegation to the Asean-India Commemorative Summit, here, today.
Commenting on the status of the 35 memoranda of understanding (MoUs) worth RM158 billion signed by companies and agencies of both countries during Najib’s working visit to Chennai and New Delhi last year, Mustapa said most major projects were still at a stage of further research and discussions.
The largest project under the MoUs is the construction of the largest maritime city on Carey Island, Selangor, under the collaboration of MMC Ports Holdings Sdn Bhd, Sime Darby Property Bhd and Adani Ports of India, as well as the construction of Port Klang’s new port in Carey Island involving an investment of US$32 billion.
“The proposal has already been submitted to the Cabinet and the National Economic Council,” he said.
Commenting on the Najib-Modi meeting today, Mustapa said apart from strengthening bilateral ties, both leaders were also expected to discuss investment and trade relations as well as multilateral strategic partnerships for mutual benefit.
He said they were also expected to touch on the Regional Comprehensive Economic Partnership to form a free-trade agreement between 10 Asean countries with six strategic partners, namely China, India, Australia, Japan, South Korea and New Zealand.