OCBC’s private banking arm has opened a unit in Malaysia to provide customized solutions for onshore affluent clients.
Bank of Singapore has opened a wealth management entity in Malaysia to provide customized wealth solutions and investment advisory services for ultra-high and high net worth clients in the country, according to a statement released by the institute Thursday.
The new unit will be called BOS Wealth Management Malaysia (BOSWM Malaysia) and will employ 60 staff. It will be led by chief executive and 25-year industry veteran Teh Chi-Cheun.
Malaysian Wealth Outlook
According to the Bank of Singapore, the entry into the Malaysia onshore business comes at an «an opportune time» as it is expected to be one of the fastest-growing wealth markets in Asia with the number of ultra-high net worth individuals in the country forecasted to increase by 43 percent between 2021 and 2026.
«There is clearly potential for this market to develop and flourish – we can build on the existing synergy in this market given that the OCBC Group is already well represented here through its subsidiaries, OCBC Malaysia and Great Eastern,» said Bank of Singapore CEO Bahren Shaari.
Onshore Strategy
Private banks tapping into onshore opportunities is not a new trend, with many Swiss pure plays known for establishing strategic partnerships with local lenders to exchange global investment and product capabilities for access to clients with offshore needs.
But OCBC is not seeking a new channel in Malaysia to acquire offshore clients but rather providing a full range of core services onshore across banking, insurance, and wealth management.
In 2017, OCBC made a similar move in Indonesia to provide onshore wealth services with the launch of a private banking unit targeting high net worth individuals, alongside SMEs and large corporations. The unit sat under its Indonesian banking arm OCBC NISP which also provides a comprehensive range of retail banking, insurance, business banking, and sharia banking services.
As of end-2021, Bank of Singapore had $124 billion in assets under management in Asia, making it the seventh-largest private bank in the region, according to finews.asia's 2021 AUM League Table.
