Maybank has little exposure to Dubai, says Wahid

Published on The Edge Online
17 December 2009


Written by Siti Sakinah Abd Latif & Max Koh


KUALA LUMPUR: MALAYAN BANKING BHD [] will not be affected by Dubai's debt crisis given its exposure there of less than 0.2% of the banking group's total assets, said its CEO Datuk Seri Abdul Wahid Omar.

Wahid said the bank's exposure in Dubai was being monitored by its branches in Bahrain and London.

"We are hopeful that the issue in Dubai will be resolved. Abu Dhabi has lent US$10 billion [RM34.2 billion] to enable Nakheel to repay its bond debt, which is a positive development," Wahid told reporters on Dec 17 after a signing ceremony between Maybank and MoneyTree (M) Sdn Bhd for the sponsorship of a year-long financial-literacy programme for youngsters.

He said the development in Dubai would bring back significant confidence and stability to financial markets.

It had been reported that Abu Dhabi recently provided the amount to Dubai to help Dubai World, the state-owned holding company, avoid defaulting on a US$4.1 billion Nakheel bond payment.

On another matter, Abdul Wahid said Maybank had received the final approval from the Vietnamese authorities to increase its stake in An Binh Bank from 15% to 20%.

When Maybank bought its 15% stake in An Binh in March 2008, it was given the option to increase the stake to 20%, which is the highest stake that a foreign company is allowed to hold in Vietnam.

"We are now in the process of finalising the agreement," Wahid said.

On the bank's outlook for next year, Wahid said Maybank was bullish about 2010's economic prospects, adding that its in-house economist had forecast 4.5% growth.

"I think as we recover, obviously, we expect the financial industry to perform well as well," he said.

He said the country's asset policy would continue to create a conducive environment for business.