AmBank eyes Brunei Islamic finance opportunity

THE AmBank Group are working towards establishing an Islamic bank in Brunei.

Speaking to The Brunei Times, the chairman of the AmBank Group, Tan Sri Azman Hashim, said the Bank is hoping that the Brunei government will issue the Malaysian financial house with a license.

In an exclusive interview on the sidelines of the APEC Summit in Vladivostok, Russia, he said that the Ambank Group has been in Brunei more for asset management.

The Malaysian ABAC member also said that business is "a bit slow going" but they are still there and trying to grow their services.

"We see potential there because Brunei is a rich country and I think people there are considered to have good income, so it is good for financial services in investment assets etc," he said. He added that they are trying to establish an Islamic bank there, and are hoping that the Brunei government will issue the bank with a license, however it could be in the midst of creating a policy first.

Tan Sri Azman said that they will continue to have a presence in Brunei and as Malaysian, and neighbours in ASEAN, they have plans to be in Brunei for the long term.

When asked about the expertise garnered from AmBank's experience in the Islamic financial market, Tan Sri Azman said that Brunei already has the expertise in finance, but they could benefit in terms of asset management and fund management.

"I think that we are exposed not only to the Malaysia market but the overseas market as well so we can be of some value there," he said.

He added that one of the benefits of doing business in Brunei is the proximity between both countries, and that "it is very easy" due to both countries having the same culture. "The Brunei Islamic bank (Bank Islam Brunei Darussalam) is also doing very well," he said adding that Islamic finance is a good area which Brunei banks can expand as well.

In 2009, the AmBank Group opened a subsidiary in Brunei, AmCapital (B) Sdn Bhd, located in the heart of Bandar Seri Begawan. A report from The Edge, stated that AmCapital (B) Sdn Bhd would bring expertise in funds management, Islamic finance and investment advisory to Brunei, "tapping on the vast resources, and over three decades from the group's investment banking arm, AmInvesment Bank Group".

The same report published Tan Sri Azman stating that he sees Brunei as "an excellent market for syariah-compliant products" especially in areas of wealth management or private equity investments. "It is also well-recognised that Islamic products offer excellent potential, therefore adding depth and breadth to the banking infrastructure in Brunei," he said in 2009. The group also has subsidiary offices in Jakarta and Singapore.

The Brunei Times