Citigroup (NYSE:C) has been approved to do investment banking in Malaysia, as it announced it had been awarded a stockbroker license from the Securities Commission of the country. Estimates are it’ll take about six months for the company to get the investment side of their business running in Malaysia.
Much of the reasoning behind the approval from Malaysian authorities is they’re looking to shore up their local capital markets with an increase of funds from the Middle East; something they feel Citigroup will be able to do well for them.
Citigroup already has a significant presence in the guld region, a major factor in getting approval for one of the three licenses offered by Malaysia for foreign banks to participate in investment banking in the country.
Sanjeev Nanavati, CEO of Citibank Berhad, had this to say on Citigroup’s behalf: “This is a landmark achievement for Citi. With Citi’s global reach and resources, we believe we can add value to the growth and development of the Malaysian capital markets.”
With the Asian market without a doubt being the high-growth region of the future, Citigroup and other large banks have been working strenuously to lay a foundation in the region to build on in the years ahead.
Malaysia was a good opportunity for Citigroup because it has been attempting to strengthen its local capital markets as other regional competitors are ahead of them in that regard, and to attract foreign investors they need that to change; the reason they awarded Citigroup with the license, again, noting their strength in the Middle East, which is the chief area they’re looking to generate revenue and capital from.
Other changes Malaysia has been making is to free up its economy more, making it more attractive for those on the outside. The country has had quotas and other restrictions which have made it less attractive to outside investment, the reason they’re opening up more in the financial sector to bring in more capital to the area.
