This article first appeared in The Edge Malaysia Weekly on July 3, 2023 - July 9, 2023

THE banking industry in Malaysia is set to see a number of leadership changes this year.

Industry sources say Datuk Wan Kamaruzaman Wan Ahmad, the former CEO of Retirement Fund Inc (KWAP), is tipped to be chairman of the soon-to-be-merged Malaysia Building Society Bhd (MBSB) and Malaysian Industrial Development Finance Bhd (MIDF) group.

“It’s still at the initial stage. The [parties] have just started the process to seek approval from Bank Negara Malaysia and the Minister of Finance,” a source familiar with the plan tells The Edge.

Wan Kamaruzaman, 64, had helmed civil service pension fund KWAP for more than five years, from May 2013 to October 2018. He is currently the chairman of Bank of America Malaysia Bhd (BOA), having been appointed to the role only last month after having served as an independent director there since July 2022.

Should he take on the chairmanship at the MBSB-MIDF group, he would have to give up his position at BOA as it would be a conflict of interest to have roles in both banking groups, industry sources point out.

Wan Kamaruzaman declined to comment when contacted by The Edge.

A chartered accountant, he began his career with Malayan Banking Bhd, mainly in the treasury department, and subsequently also worked at the Affin banking group and the Employees Provident Fund (EPF).

He is currently an independent director at Malaysian Resources Corp Bhd, Al-A‘qar Healthcare REIT and Al-Salam REIT and a director at Bermaz Auto Bhd, among others. He is also a member of the EPF’s investment panel and the Malaysian Aviation Commission.

On July 1, Rafe Mohamed Haneef, 53, the former CEO of group transaction banking at CIMB Group Holdings Bhd, assumed the position as MBSB’s new group CEO. MBSB is to be the holding company of the combined MBSB Bank Bhd and MIDF.

The previous MBSB CEO, Datuk Nor Azam M Taib, is now focused on his responsibilities as CEO of MBSB Bank. MBSB has been without a chairman ever since Tan Sri Azlan Zainol, 72, passed away in January.

MBSB had only last month announced the details of its acquisition of MIDF. It will buy the entire equity interest in MIDF from Permodalan Nasional Bhd (PNB) for RM1.01 billion through the issuance of 1.05 billion MBSB shares — or 12.78% of its enlarged share base — to PNB at an issue price of 96.52 sen.

PNB will emerge as a substantial shareholder of MBSB, while the EPF’s stake will be diluted to 57.45% from 65.87%. The deal is expected to be completed in the third quarter and is subject to the approvals of MBSB shareholders, the Securities Commission Malaysia and Bursa Securities.

Meanwhile, sources say CIMB Group Holdings group CEO Datuk Abdul Rahman Ahmad’s three-year contract, which was to have expired last month, has been extended. It is, however, not clear by how long the contract was extended.

“It has been extended,” CIMB confirms, when contacted by The Edge.

The extension comes as a surprise to some in the industry as there were strong rumours that Abdul Rahman planned to leave upon the end of his contract.

A former non-executive chairman of Sime Darby Bhd and Velesto Energy Bhd, Abdul Rahman took the helm of CIMB on June 10, 2020.

Meanwhile, all eyes are on AMMB Holdings Bhd (AmBank Group) as the contract of its group CEO, Datuk Sulaiman Mohd Tahir, is understood to be expiring in November. He has been with the group for more than seven years, having been appointed to the role on Nov 23, 2015.

“Whether he gets renewed or not, he has brought AmBank to an exceptional place,” an industry source says, pointing to Sulaiman’s efforts in steering the bank out of the doldrums following its RM2.83 billion global settlement with the government in its financial year ending March 31, 2021 (FY2021). This was in relation to the bank’s historical dealings with 1Malaysia Development Bhd and related companies.

In FY2023, AmBank’s net profit grew 15.5% to RM1.74 billion on the back of a 1.56% increase in revenue to RM4.74 billion and achieved a 10% return on equity that was targeted for FY2024, one year earlier than expected.

“He has proven his mettle. If he stays on, AmBank benefits … and if he goes elsewhere, the new place benefits,” the source opines.

It will be interesting to see what the board decides.

Over at Hong Leong Bank Bhd, there was yet another change as Kelvin Lam Sai Yoke — formerly the head of United Overseas Bank Ltd’s TMRW digital bank — came on board as its CEO on July 1. Lam takes over from Domenic Fuda, who retired after more than seven years with the group. 

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