KUALA LUMPUR: Citigroup Inc launched its Malaysian brokerage unit, Citigroup Global Markets Malaysia Sdn Bhd (CGMM) yesterday.

“This (stockbroking) licence (that comes with CGMM) fills the gap that we have in our Malaysian product suite. We can now provide the fullest range of services to the fullest range of clients,” said Sanjeev Nanavati, chairman of CGMM and CEO of Citibank Bhd, at the CGMM launch here.

Citi, a global financial services company, spreads its reach to more than 140 countries worldwide. The group has equity operations in more than 80 countries, ten of which are within the Asia-Pacific region, including Australia, Hong Kong, Indonesia, India and Japan.

CGMM aims to be one of the top three foreign institutional brokers in Malaysia within the next three years, with their focus on the institutional client base in the country and internationally.

Currently, there are a number of foreign stockbrokers in Malaysia, such as CLSA Securities, Credit Suisse Securities, JP Morgan Securities, Macquarie Capital Securities, Nomura Securities and UBS Securities.

“We have set aggressive targets but are very confident that we can achieve this position,” said Sanjeev.

He added that Malaysia had been off the global investment radar screens but that foreign ownership in the local stock market was picking up. In particular, Citi’s Middle Eastern clients were keen on looking into opportunities in the Asia-Pacific region.

Besides Malaysia, Citi has also been expanding its foothold in various locations around the South-East Asian region. In August, Citi commenced equities brokerage operations in Indonesia and the group also plans to purchase a minority stake in a Vietnamese stockbroking firm.

On the proposed internationalisation of the ringgit, Sanjeev said that he believed the central bank had acted correctly in not attempting to rush towards liberalisation.

Tan Sri Dr Zeti Akhtar Aziz, governor of Bank Negara Malaysia (BNM), had said that the liberalisation of the local currency could be implemented in phases, and that initial measures to liberalise the country’s foreign exchange policy for international trade purposes were aimed at promoting intra-Asia trade.

“All the key barriers to trade have been removed, and the ringgit liberalisation was just a minor step. Liberalisation may have exposed the ringgit to speculation and volatility,” said Sanjeev, who concurred with the governor.

This article appeared in The Edge Financial Daily, September 24, 2010.