RHB Capital allocates over RM100m for capex

RHB Capital Bhd has allocated over RM100 million for its capital expenditure (capex) this year, managing director Michael J. Barrett said yesterday.

He said the allocation included the opening of between eight and 10 conventional banking branches and six to eight Islamic banking branches or marketing offices.

"We are allocating for this purpose half a million to one million ringgit per branch depending on location," Barrett said.

"We expect to have a good number of them up and running by the end of this year, or latest by the first quarter of next year," he said after the company's annual general meeting in Kuala Lumpur.

Barrett said a significant amount would also be spent on renovating the local operations' existing 65 older and larger branches. He however, declined to give the expenditure figure for this exercise.

"We are also looking at taking advantage of the reform of banking regulations in Thailand, where you can add up to five offices," he said.

RHB Capital currently has seven branches in Singapore, and one each in Brunei and Thailand. It has also announced the proposed acquisition of a 49 per cent stake in Vietnam Securities Corporation to tap the country's market.

Barrett said RHB Capital was also looking at neighbouring countries for expansion and had targeted Indonesia as a new market in addition to plans to expand its existing international operations.

"We are looking at possible acquisitions in Indonesia. We believe Indonesia is a very vibrant market and there are large Malaysian companies doing business there," he said.

"Indonesia is therefore very attractive to us with many opportunities unveiling itself and more so for our Islamic banking activities there," he added.

Asked how much income was projected from international expansion, Barrett said: "At this time, we are not in a position to divulge details. But we are looking at getting 10 per cent of our earnings internationally by 2010."

On whether the group was increasing risk by expanding amid the economic slowdown within Asean, Barrett said from another point of view, the scenario was an opportunity to acquire assets at lower prices. - Bernama