Maybank to open branch in Laos

Maybank to open branch in Laos

Maybank, one of Malaysia’s largest banks, will open a branch in Laos at the end of this year as part of its expansion programme within Asean.

“We are making arrangements to open our first branch in Vientiane. The story of Laos’ branch will be next month,” the bank’s President and CEO Datuk Seri Adul Wahid Omar announced last week at the opening ceremony of a branch of the bank in Beijing.

The Maybank executive did not reveal details of the bank’s plans for Laos. Maybank currently has 88 branches in South-East Asia, where it has acquired several banks in the past few years.

Analysis shows the bank’s decision to enter the market in Laos - one of the least developed countries in Asia – is based on the potential offered by the strengthening Lao economy, which has seen growth of at least 7.5 percent annually over the past five years.

Growing Malaysian in-vestment in Laos and the launch of the Asean Economic Community in 2015 are also good reasons for the Malaysian bank to open a branch in Laos, where some 24 local and international banks are already operating.

According to statistics from the Lao Ministry of Industry and Commerce, in fiscal year 2010-11 bilateral trade between Laos and Malaysia reached US$7.5 million. Up to the end of 2011, Malaysia had invested in 95 projects in Laos with approved investment capital of US$412 million. Malaysia is among the top 10 foreign investors in Laos.

The Bank of the Lao PDR has relaxed restrictions on investment in the banking sector, opening up opportunities for overseas banks such as those based in Australia, France, Thailand and Vietnam to open branches in Laos. The government also believes the presence of more banks and a greater range of services will boost investment and benefit customers.

Maybank already has branches in Thailand and China. The bank opened its Beijing branch last week, making it the bank’s third branch in the Greater China region after Hong Kong and Shanghai.

Maybank CEO Wahid said “Naturally, we want to have the ability to undertake services in local currencies as well. If we go by our experience in the Shanghai branch which was set up in 2000 and granted a licence in 2003, it will probably take another two to three years for us to get a full licence in Beijing.”

He added that Maybank had no immediate plans to set up another branch elsewhere in China but would do so according to clients’ needs.

vientiane times