Overview of Investment Banking in Malaysia
Bank Negara Malaysia which is the Central Bank of Malaysia is empowered to act as the regulator for all banking institutions including Investment Banks in Malaysia and it supervises and controls all banking institutions which are incorporated under the Financial Services Act 2013, Islamic Financial Services Act 2013 and the Central Bank of Malaysia Act 2009. It is a statutory body which started operations on 26 January 1959 and it is responsible for promoting monetary and financial stability facilitating well balanced and sustainable growth of Malaysian Economy.
Investment Banks in Malaysia are regulated by the Securities Commission of Malaysia which is a statutory body established under the Securities Commission Act, 1993. It is the primary regulatory authority for capital marketCapital MarketA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more activities in Malaysia. Together with Bank Negara Malaysia and Securities Commission of Malaysia regulate Investment Banks in Malaysia by way of setting prudential regulation of investment banks operating in Malaysia, their business and market conduct and by promoting capital market through enhancing market integrity and investor protection in the capital markets. Any entity which plans to establish Investment Banking in Malaysia is required to incorporate a public company under the Companies Act 2016 and make an application for investment bankingApplication For Investment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more license in writing by submitting an application through Bank Negara Malaysia which on fulfilling of set criteria may grant a license.
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Source: Investment Banking in Malaysia (wallstreetmojo.com)
Services Offered by Investment Banking in Malaysia
Major services offered by Investment Banks in Malaysia are as follows:
#1 – Mergers and Acquisitions
Investment Banks assist clients in domestic as well as cross-border mergers and acquisitionsMergers And AcquisitionsA merger and acquisitions (M&A) agreement refers to an agreement between two existing companies to merge into a new company, or the purchase of one company by another, which is done generally to benefit from the synergy between the companies, expand research capacity, expand operations into new segments, and increase shareholder value, among other things.read more which includes providing buy side and sell side advisory, helping clients in management buyoutsManagement BuyoutsA management buyout (MBO) is a type of acquisition where the management of the company acquires the ownership of the business by increasing their equity stake or by purchasing assets and liabilities with the objective of leveraging their expertise to grow the company and drive it forward using own resources.read more, leveraged buyouts, assisting clients in setting up joint venturesJoint VenturesA joint venture is a commercial arrangement between two or more parties in which the parties pool their assets with the goal of performing a specific task, and each party has joint ownership of the entity and is accountable for the costs, losses, or profits that arise out of the venture.read more etc.
#2 – Financial Advisory
Under this Investment Banks helps clients in the listing of securities in Malaysian Stock Exchanges by ensuring compliance of regulatory guidelines for the purpose of capital management, performing corporate valuations, advising clients in corporate restructuring and so on.
#3 – Equity Capital Markets
Investment Banks assist clients in listing on Malaysian, Hong Kong, Singapore, and Indian Markets by structuring and arranging innovative primary and secondary market transactions
#4 – Debt Capital Markets
Investment Banks assist clients who are planning to raise funds from the debt market in originating deal structure, pricing of the debt offering, underwriting and syndicating their products.
List of Top Investment Banks in Malaysia
Malaysia offers abundant opportunities for investment banking professional. Major Investment Banks in Malaysia are as follows:
- Affin Hwang Investment Bank Berhad
- Alliance Investment Bank Berhad
- AmInvestment Bank Berhad
- May Bank Investment Bank
- KAF Investment Bank
- CIMB Investment Bank
- Public Investment Bank Berhad
- RHB Bank
- Hong Leong Bank
- United Overseas Bank (Malaysia)
- Bank Rakyat
- OCBC Bank (Malaysia) Berhad
- HSBC Bank Malaysia Berhad
Recruitment Process in Investment Banks in Malaysia
Getting into Investment Bank jobsInvestment Bank JobsThe investment banking job description is a formal narrative that lists out the essential qualification, basic skills and technical skills required in a candidate to fill in the vacant investment banker position. It also explains the roles and responsibilities to be performed in this job position.read more in Malaysia requires compliance with the screening practices of various Financial Institutions which seek to promote ethical workforce for the Financial Industry. Apart from fulfilling the educational qualification eligibility criteria and clearing various interview rounds before one land a job in one of the topmost Investment Banks of Malaysia. There is no standard recruitment process which Investment Banks follow but all majorly involves a general HR round followed by a Group Discussion round and a technical round followed by a personal interaction with the Functional/Vertical Head. One can apply directly through the websites of major Investment Banks and also these companies hire through campus selection by visiting various major Universities.
Culture in Investment Banks in Malaysia
Malaysia is a fast growing business destination and provides a fast-paced lifestyle for its young population. English is considered the language of business as most business is conducted in English. Working culture is strictly regulated as per the guidelines laid down by the Department of Employment and employers have to adhere to the strict guidelines in letter and spirit. Malaysia is a multicultural country and the working culture is highly mixed with many different nationalities working alongside each other. Malaysian people are highly polite and abide by their country’s workplace policies.
Salaries of Investment Banking in Malaysia
Salary structure varies depending upon the educational qualification, the number of years of experience in the Investment Banking domain and the role handled. As per a Robert Walters Global Salary Survey 2017, salary structure of different roles handled in an Investment Banks with varied years of experience is reproduced below for reference purpose:
Conclusion
Investment Banking in Malaysia is poised for a strong growth in the years to come despite geopolitical risks, trade warsTrade WarsA trade war occurs when one country raises its tariff on imports, and the other country responds by raising its own tariff to restrict imports.read more, and other external headwinds. With a good number of domestic deal flow as well as strong capital market, Investment Banks see a continued strong upward trend driven by the healthy flow of deals, strong economic growth, a favorable movement of commodity prices and a stronger Malaysian Ringgit (MYR-Currency of Malaysia). Malaysia continues to see a positive uptrend of many global banks setting up offices in its capital city Kuala Lumpur which provides ample of opportunities for professionals in Banking and Financial Services Sector planning to settle in Malaysia. Since the country currently lacks in adequate professionals locally to meet the growing need for skilled manpower who can work in the various specialized functions of Investment BanksFunctions Of Investment BanksInvestment banks perform various functions for their clients, including initial public offerings (IPOs), mergers and acquisitions, risk management, equity research, structuring of derivatives, merchant banking, and investment management.read more, a lot of foreign expats are being attracted to this fast developing business hub of Asia who can team up with the local pool of talent and can develop strong teams to take the investment banking industry to another decade of strong growth trajectory.
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This has been a guide to Investment Banking in Malaysia, their services offered, recruitment process, their culture, top Investment banks in Malaysia, salaries and exit opportunities. You may also have a look at the following article for learning more about Investment Banking –
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