CIMB Securities aims to stimulate the growth of the Malaysian capital market; completes a ‘one bank approach’ to provide fully integrated Wholesale Banking services to clients

10 May 2024

Kuala Lumpur: CIMB Securities Sdn Bhd (“CIMB Securities” or “the Company”), a wholly owned subsidiary of CIMB Investment Bank Berhad targets high single digit growth in market share by year-end, reaffirming its commitment to support the Government’s aspirations in creating a vibrant ecosystem, whilst stimulating the growth of the Malaysian capital markets. This is aligned with CIMB Group’s overarching strategy to enhance its in-house capabilities, complementing its Wholesale Banking business in Malaysia, offering a complete suite of innovative solutions with integrated stockbroking and equities services, and creating value for its institutional and corporate clients through its ‘one bank approach’. 

The launch ceremony was graced by YB Senator Datuk Seri Amir Hamzah Azizan, Finance Minister II, together with Datuk Mohd Nasir Ahmad, Chairman of CIMB Group and Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group. Also in attendance were Novan Amirudin, Co-Chief Executive Officer, Group Wholesale Banking of CIMB Group; Ruzi Rani Ajith, Chief Executive Officer of CIMB Securities and senior leaders of CIMB Group.

YB Senator Datuk Seri Amir Hamzah said, “Malaysia still holds a sweet spot among the regional capital markets as we are seeing increased investors’ confidence in view of the robust fiscal reforms implemented by the Government. This is backed by the country’s strong fundamentals and commitment to implement the MADANI economic reform agenda, which in turn is reinvigorating Malaysia’s economy. Therefore, it is an opportune moment for institutional stakeholders to take on a catalytic role in supporting the growth of the capital markets driving the country’s economy forward.” 

“I am pleased to see CIMB advancing its commitment towards stimulating the economy. I am confident it will contribute to a more robust ecosystem, particularly for Malaysia’s capital markets. As our economic trajectory continues an upward momentum, I look forward to seeing more participation from institutional stakeholders and leading financial institutions in making Malaysia an attractive investment destination for both foreign and local investors,” elaborated YB Senator Datuk Seri Amir Hamzah.

Today, the size of Malaysia’s public equity market stands at RM2 trillion, making it one of the most vital areas of the economy. As a key player in the market, CIMB Securities is committed to work with partners to sustain, develop and improve Malaysia’s capital markets. Over the years, it has pioneered many “market mover” ideas to create more sustainable companies to compete globally. 

Following the acquisition of KAF Equities on 8th February 2024, CIMB Securities brings together a powerhouse of talent, experience and innovation, and has made significant strides since. In January 2024, it held the 22nd position in the Bursa Broker Ranking with a modest 0.7% market share pre-acquisition. Its market share has grown to 4.54%, holding the 9th position as of March 2024. CIMB Securities is already making good headway where in its first two months, CIMB Securities has intermediated RM6.3 billion of block trades, which includes ANZ’s RM2.1 billion sell-down of AmBank, the largest equity block trade in Malaysia since 2017.

Novan said, “CIMB Securities’ entry to the market strengthens the Group’s ecosystem, enabling us to complete our comprehensive Wholesale Banking value proposition to better serve our clients through our ‘one bank’ approach. We are pleased to act as the main gateway and premier agency in facilitating inflow and outflow trades within the Malaysian capital markets. Adopting a structured and phased approach, we have a clear roadmap for the future where we will first focus on the wholesale market, and later to focus on the retail and wealth segment. We will collaborate with international and regional players, to bring international content and ideas to our clients, but without the cost of “on the ground” teams in the region. We are also investing in technology to scale up our business at the right time.”

“We are committed to forging partnerships in both regional and developed markets, creating a network that drives growth, resilience, and adaptability. CIMB Securities blends global perspectives with localised expertise, ensuring that our market intelligence is not just comprehensive but contextualised. This unique synthesis enables us to provide insights that resonate in diverse markets, driving investment success for our clients on a global scale.” added Novan.

The acquisition of KAF Equities via CIMB Investment Bank was completed on 8 February 2024, following the divestment of CIMB’s residual stake in its stockbroking joint venture (“CGS-CIMB JV”) with CGS International Holdings Limited (formerly known as China Galaxy International Financial Holdings Limited) (“CGI”) in December 2023.