As part of efforts to update
Japanese investors in Malaysia on economic and banking issues,
Maybank and Mizuho Corporate Bank jointly organized a seminar
today at Menara Maybank.
The seminar is part of an on-going series to
keep these investors abreast of latest developments in the financial
and economic aspects which can assist them in their business operations.
Maybank's Japanese corporate customers totals
230 with outstanding facilities of RM1.9 billion. Maybank's facilities
to Japanese businesses range from deposits to financial facilities
such as overdrafts, term loans, revolving credits, trade finance
to remittances and forex as well as cash management services.
"The Japanese customers are therefore important
to us and in 2003, Maybank created the Japan Desk in collaboration
with Mizuho Corporate Bank to focus on enhancing our services
to Japanese clients both in Malaysia and Japan. Since the establishment
of the Japan Desk, we have managed to increase our Japanese client's
loan portfolio by about RM400 million," said Encik Agil Natt,
Deputy President of Maybank in a welcome address at the Seminar
Also present at the seminar was Mr. Kazumasa
Domen, General Manager of Mizuho Corporate Bank Ltd. Two papers
were presented, one by Maybank entitled: "Options for Financing
under Islamic Banking" while another was by Mizuho entitled:
"Southeast Asia's Economy vis-?vis China's Economy and prospects
of return of high growth".
Maybank's collaboration with Mizuho via the
Japan Desk covers areas such as credit facilities, cash management
services, remittance, M&A and investment banking, exchange
of economic and forex information and advisory services. The seminar
is part of Japan Desk's services to Japanese customers. Encik
Agil said that Islamic banking is already a well accepted and
viable financial alternative and Maybank Malaysia with an established
framework and delivery channels is able to provide a comprehensive
range of Islamic products and services for Japanese businesses.
According to Bank Negara Malaysia as at end-2004,
the total assets of the Islamic banking sector increased to RM94.6
billion, which accounted for 10.5% of the total assets in the
banking system. The market share of Islamic deposits and financing
also increased to 11.2% and 11.3% respectively. In 2000, the domestic
Islamic banking industry has been growing at an average rate of
18% per year in terms of assets. The authorities have implemented
a 10 year structured consumer education program to increase consumer
awareness on the unique characteristics of Islamic financial products
and products offered by Islamic financial service providers.
Maybank is the largest Islamic Banking player
in the country and as March 2005, it has share of 32% in financing.
Islamic financing to business customers has grown to 39% of total
Islamic financing of over RM16.8 billion of which trade financing
accounted for RM 2.9b or 56.4% of the country's Islamic trade
financing market. Aseambankers, the investment arm continues to
be a major leader in providing funding in the Islamic capital
markets.
"Our portfolio of Islamic banking facilities
for our Japanese clients is about RM700m comprising term financing
and trade financing. Our commitment in promoting Islamic banking
to our customers is reflected in the availability of our wide
range of competitive products covering needs of our retail and
business customers as well as our established network of delivery
channels, including 9 full fledged Islamic banking centres to
support customers," said Encik Agil.
On the prospects of Southeast Asia and China,
Mizuho shared on the middle term prospects of these two regions
as well as the risk issues affecting their economies.
Malaysia continues to be an investment destination
for Japanese businesses and as of March 2005, Japan External Trade
Organization (JETRO) reported the number of Japanese companies
in Malaysia (that is, Japanese companies and individuals that
have over 10% of total shares) totalled 1,307. In 2004, MIDA sources
indicated that there were 85 investment projects from Japan worth
over RM1.01 billion investments.
