Posted inBusiness moves

Citibank in pact with Cimb principal in Malaysia

Citibank (M) Berhad has entered into an agreement with CIMB-Principal Asset Management Malaysia‚ becoming the first foreign bank in the country to distribute private retirement scheme solutions.

The private retirement scheme, unveiled by the Malaysian government in July 2012, is a voluntary scheme open to all Malaysians and foreigners over 18 years irrespective of whether the individual is an employee provident fund (EPF) member. The scheme is also available to employers contributing on behalf of employees.

The scheme is structured by private sector fund providers which are licensed and approved by the Securities Commission, Malaysia.

“Acknowledging the demand from our discerning customers, Citibank clearly understands its importance and continuously source for product solutions to fulfil these demands,” said Elaine Fan, head of retail banking at Citibank said. “PRS fits perfectly within the wealth continuum solutions.”

“Hence, when PRS was first launched in Malaysia last year, we immediately put our plans into action with CIMB-Principal in order to realise this opportunity for our client base in Malaysia. Our partnership with CIMB-Principal as its PRS distributor is an important milestone for us in supporting the government’s initiative in encouraging the public to plan for their retirement years effectively,” Fan added.

CIMB-Principal offers investors conventional as well as Islamic private retirement schemes which the investors can choose on the basis of their preference, goals, retirement needs, and risk appetite.

“Citibank has been one of our strongest partners throughout the years – to date, the bank remains one of the top performing distributors. Citibank customers can now have the opportunity to sign up and benefit from the potentially good returns on their money invested in the funds we manage under the PRS stable.

“Together, this synergy will further boost the awareness among the public on savings and empower Malaysians in becoming financially self-reliant and independent to enjoy their golden years of retirement,” Munirah Khairuddin, chief executive, CIMB-Principal said.

Established in 1995, CIMB-Principal Asset Management counts itself among the largest asset management companies in Malaysia with a regional footprint covering Singapore, Indonesia and Thailand. CIMB Group and Principal Financial Group respectively own 60% and 40% stakes in the company.

CIMB Group offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, its key operations are located in Malaysia, Singapore, Indonesia and Thailand, while it is also present in Brunei, Myanmar and Vietnam. Beyond ASEAN, the group has offices in Hong Kong, Bahrain, London and New York.

Principal Financial Group is a leading Fortune 500 global financial services group offering a wide range of financial products and services including retirement and investment services, life and health insurance and mortgage banking through its diverse family of financial services companies.

Part of the Mark Allen Group.