The Bar Council's International Malaysia Law Conference 2016 ("IMLC 2016") was held at The Royale Chulan Kuala Lumpur from 21 to 23 Sept 2016.
By Arina Ong
Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, Group Chief Executive Officer of CIMB Group Holdings Berhad, addressed the topic of “The CIMB Journey into ASEAN: Knowledge, Expertise and Foresight” at IMLC 2016. This session was moderated by HE Edmund Bon Tai Soon, Representative of Malaysia to the ASEAN Intergovernmental Commission on Human Rights (“AICHR”).
Tengku Zafrul started the session by stating that many were interested in knowing the success stories and the challenges faced by CIMB when expanding into ASEAN countries. He shared characteristics about ASEAN that prompted CIMB to venture into the region. Firstly, ASEAN is a region of rapid economic development — home to the industrialised economies of Singapore, Malaysia, Indonesia and Thailand, alongside the developing Mekong economies of Laos, Cambodia and Vietnam. The world’s economic centre of gravity has in recent years shifted to Asia. He opined that there is a large growth potential in ASEAN, which continues to be a major trading partner among its members and with the world.
ASEAN is also a region of diversity in the aspects of colonial experiences, economy, and demographic and geographic factors. For example, there are countries rich in resources like Brunei, contrary to those poor in resources like Laos.
He opined that CIMB has to constantly face challenges in those ASEAN countries with diverse elements and especially when national security takes centre stage. Despite that, the “ASEAN way” of diplomacy and cooperation characterised by caution, pragmatism and consensusbased decision–making has lessened the hurdles in CIMB’s expansion. Therefore, a good expansion strategy is a major step forward in realising the agenda set by the organisation.
Tengku Zafrul elucidated the merger and acquisition of CIMB Niaga in Indonesia, how CIMB is growing organically in Cambodia by turning profitable after operating for five years, and also how CIMB’s digital banking operation is working in Singapore since the country is a hotbed for financial innovation, with a digital–savvy consumer base. In all these situations, he advised that one must be nimble and always receptive to changes.
Tengku Zafrul told the crowd that the CIMB group is now established in the home country and also across ASEAN countries, with a huge and diverse network. He reminded the listeners about the key takeaways of “Know Your Customers” and “Know Your Economy” approaches by understanding the macro landscape, respecting cultural diversities and anticipating possibilities and limitations, as they vary according to countries.
He noted that CIMB frequently engages with tax advisors and lawyers to ensure compliance with regulations, and also with non–governmental organisations and the community, to contribute to society. ASEAN’s growth is expected to continue, to become the world’s 5th–largest economy by 2020. Last but not least, he ended the session by quoting Charles Darwin: “It’s not the strongest of the species that survives nor the most intelligent that survives. It’s the one that is most adaptable to change.”
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