INDONESIA GETTING TO BE INCREDIBLE MARKET WITH UPSIDE POTENTIAL - CIMB GROUP CEO

KUALA LUMPUR, July 31 (Bernama) -– Indonesia is getting to be an incredible
market with upside potential in terms of margin and growth, CIMB Group Chief
Executive Officer Nazir Razak says.

He said that 12 months ago, there was not much hype on the Indonesian
market, but prospects from this market was getting very exciting.

"Indonesia is a different place to do business and is changing very fast.

"We expect earnings and assets for CIMB Group to come more from Indonesia
than Malaysia, the earliest by 2015," he said during the 15th Malaysian Law
Conference on Growing Beyond Borders here Friday.

He said the mistake people make was to perceive that the Indonesian market
was considerably similar to Malaysia due to its regional ties. "In certain
business in Indonesia, you may need partners," he said.

CIMB Group is now in eight out of the 10 Asean markets. It has not entered
the Philippines and Laos.

On successful strategies for cross border business, Nazir said there was a
requirement in terms of bigger balance sheet and size. "You need to have
economies of scale," he said.

He said CIMB's journey over the years to be Malaysia’s second largest
financial services provider and the fifth largest in Southeast Asia in terms of
total assets had paid off and helped in its expansion overseas.

"For instance the merger with Southern Bank, even though it is a hostile
takeover, has helped us in building bigger balance sheet and size," he said.

–- BERNAMA