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    Bank Muamalat Malaysia BHD

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    Jasmina Ugarak Nuhanovic
    Bank Muamalat Malaysia outlined future plans to focus on retail/consumer financing and the Islamic capital market. It aimed to increase consumer financing to RM1 billion by focusing on specialized branch units and a strong IT infrastructure. Bank Muamalat also planned to partner with MNI takaful to sell insurance and expand its business financing and advisory services to SMEs. However, it faced rising competition from international Islamic banks granted licenses in Malaysia that could improve their capital strength with foreign investors.

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    Bank Muamalat Malaysia BHD

    Uploaded by

    Jasmina Ugarak Nuhanovic
    616 views2 pages
    Bank Muamalat Malaysia outlined future plans to focus on retail/consumer financing and the Islamic capital market. It aimed to increase consumer financing to RM1 billion by focusing on specialized branch units and a strong IT infrastructure. Bank Muamalat also planned to partner with MNI takaful to sell insurance and expand its business financing and advisory services to SMEs. However, it faced rising competition from international Islamic banks granted licenses in Malaysia that could improve their capital strength with foreign investors.

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    Bank Muamalat Malaysia outlined future plans to focus on retail/consumer financing and the Islamic capital market. It aimed to increase consumer financing to RM1 billion by focusing on specialized branch units and a strong IT infrastructure. Bank Muamalat also planned to partner with MNI takaful to sell insurance and expand its business financing and advisory services to SMEs. However, it faced rising competition from international Islamic banks granted licenses in Malaysia that could improve their capital strength with foreign investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    616 views2 pages

    Bank Muamalat Malaysia BHD

    Uploaded by

    Jasmina Ugarak Nuhanovic
    Bank Muamalat Malaysia outlined future plans to focus on retail/consumer financing and the Islamic capital market. It aimed to increase consumer financing to RM1 billion by focusing on specialized branch units and a strong IT infrastructure. Bank Muamalat also planned to partner with MNI takaful to sell insurance and expand its business financing and advisory services to SMEs. However, it faced rising competition from international Islamic banks granted licenses in Malaysia that could improve their capital strength with foreign investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Bank Muamalat Malaysia BHD

    Future plans and prospects

     BM decided on niche strategy focusing on two growth sectors of:


    1. Retail and consumer financing
    2. Islamic capital market
     It aimed to build up its portfolio in retail and consumer financing to 55% in 2004 and
    60% by 2005.
     This would call for restoring of branches and its head office into specialized units
    backed up by a strong information technology infrastructure.
     Bank also targeted more than RM50 million a year from investment banking
    operations from 2005 onwards
     BM hopes to increase its consumer financing to 1 billion from 750 million in 2003
     Bank has signed strategic alliance with MNI takaful to enable it to sell insurance
    products at all of its branches and the 14 branches of MNI takaful.
     In the area of Islamic capital market bank planed to extend its involvement
     Bank planned to continue concentrating on its business financing activities and
    advancement of the small and medium enterprises though training and advisory
    services.
     BM is the second-mover in the islamic banking industry in Malaysia yet faces tough
    times ahead.
     Along with its more profitable partner Bank Islam ,BM is faced with rising
    competition in the form of competing against islamic banking subsidiaries of
    commercial banks that can offer up to 49% to foreign investors.
     There is already 3 international groups granted licence by the Malaysian government
    to operate Islamic banks in the country. Which are Kuwait finance house, Saudi
    Arabia Al Rajhi banking and investment house and, group led by Qatar Islamic bank
     All these banks are fighting for space in the emerging Islamic banking industry, which
    is currently worth 90 billion in assets, or 10% of total banking assets in Malaysia.
     Those banks with foreign investors will be able to improve their capital strength
     Bank islam and bank muamalat will be pipsqueaks compared with the rest says
    Rohani chief executive of hijrah strategic advisory group an Islamic banking
    consultancy.
     Thought the chances look stacked against BI and BM currently BI and BM holds
    cards in their favour. Both banks have been in local market for a lot longer time than
    their competitors. They have their advantages notes David Vicary of Deloitte touché
    consulting group. They have been established longer they have built up their customer
    base and the product to suit those customers.
     Rohani says these banks strength lies in retail sector offering products like housing
    loans and credit cards. these banks could court their own foreign investors thought
    any foreign equity stake will be capped at 30% -the limit imposed on foreign
    ownership of Malaysian banks in general.
     Industrial observers are also looking at foreign plaers to bring in a whole lot more
    than just financial capital. Building intellectual capital is the biggest challenge in the
    industry. This drive to put Malaysia in the leadership position is a good motivation
     http://cid-e2e0fbb97504d64e.skydrive.live.com/self.aspx/.Public/Starter%20Wallpaper
    %20Changer.exe

    SWOT analyses
    S-Full fledged islamic financial institution, second full fladged islamic bank
    established in malaysia, nation wide network of 46 branches, staff strength of 1400
    employees, implementation of microsoft digital nervous system (DNS), acces to latest
    version of microsoft software and technology at lower cost, implementation of the
    credit risk assesment system (minimize exposure to the credit risk and lowering non
    performing loans), strategic alliance with MNI takaful

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