Highlight HLBB to announce new head

Highlight HLBB to announce new head
Business & Markets 2013
Written by Joyce Goh of theedgemalaysia.com
Monday, 01 July 2013 09:00

PETALING JAYA: HONG LEONG BANK BHD [] (HLBB) is expected to announce its new head of the banking group as early as this week, according to sources familiar with the matter.

It is believed that Singaporean, Tan Kong Khoon, is the front runner for the post of group managing director and CEO of HLBB. Tan is former DBS Group Holdings Ltd head of consumer banking.

The post was left vacant following the retirement of Datuk Yvonne Chia yesterday, earlier than her contract expiry date. She made the announcement to retire on March 29.

Since the announcement, there has been no word of her replacement. This has caused some industry observers to question if HLBB's application for replacement to Bank Negara Malaysia has hit some hiccups.

A banking source familiar with the matter said the application is taking longer than normal because Chia's replacement is a foreigner and not a local. Therefore, the application process is taking longer than usual.
"It is quite a lengthy process as checks on the person need to be done internationally and there is the working permit process to adhere to. The administrative process is quite a long one,” said the banking source.

HLBB shares went down 22 sen or 1.5% to RM14.24 on the next trading day following Chia's announcement. She has served the banking group for over 12 years, and under her stewardship, HLBB has become one of the top five banking groups in the country.

During her tenure, HLBB undertook a RM5.06 billion takeover of the assets and liabilities of EON CAPITAL BHD [], which was completed in May 2011. The 15-month acquisition went down in history as the longest protracted bank takeover episode in Malaysia.

While HLBB and industry observers await the announcement of Chia's replacement, Tan is said to have resigned from his position at the DBS banking group.

According to the website, Tan joined DBS on Dec 1, 2010 as group executive and head of consumer banking. He was previously the president and CEO of the Bank of Ayudhya, the fifth largest listed bank in Thailand, from March 2007 to December 2009.

Tan began his banking career at DBS Bank in 1981. Since then, he has built consumer banking franchises in multiple markets in Asia for Citibank, Standard Chartered Bank and Australia and New Zealand (ANZ) banking group, according to the website.

Tan holds a bachelor's degree in business administration from Bishop's University, Canada. He is an alumnus of the Harvard Business School's Advance Management Programme.

HLBB was reported to have hired a veteran banker, Foong Pik Yee, as CFO early this year. Foong's name has also been speculated as a possible candidate for the CEO's post, with her previous experience as the CEO of Standard Chartered Bank Lebanon.

She had served as CFO of Standard Chartered Bank Malaysia Bhd with stints at international banks such as ANZ, HSBC and JP Morgan. However, there has been no confirmation that Foong would head HLBB.


This article first appeared in The Edge Financial Daily, on July 01, 2013.