Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Monday, November 23, 2009

TA Enterprise not keen to venture into investment banking

TA Enterprise Bhd (TAE) does not plan to enter the investment banking business now, said its chief, citing concerns over costs and returns in the crowded sector.

Group managing director and chief executive officer Datin Alicia Tiah said the premium to apply for a investment banking licence was costly compared with the amount of work in Malaysia.

TAE would have to pay RM52 million if it wants an investment banking status.

"It doesn't make economic sense to pay that much premium to be an investment banker, especially when the field is overcrowded and there are not enough jobs to go around.

"I am not saying we won't apply for a licence at all as the situation could change in the future. If there is business to do and money to be made, I may do it," she said.
TAE's stockbroking rivals such as OSK Hwang-DBS and K&N Kenanga started operating as investment bankers in 2007, while ECM Libra started investment banking operations in February 2008.

Its focus now is to expand its stockbroking arm and it may do venture capital as well.

"We will evaluate the market situation before we do things. If the timing is not right, I will not do what is not right then," she said in an interview with Business Times in Kuala Lumpur.

Stockbroking contributes around 70 per cent to the group's net profit and revenue, and will continue to do so in the coming years.

TAE, which has stockbroking operations here and Hong Kong, is also looking to invest in China.

The group also has interests in TA Futures, which is a licensed futures broker and asset management.

By Business Times (by Sharen Kaur)

No comments: