CIMB sees Singapore as key growth driver in ASEAN push

SINGAPORE: Malaysian banking giant CIMB Group is preparing for significant growth in Singapore. The city-state plays a key role as a wealth and treasury hub in Southeast Asia. In 1Q 2025, Singapore contributed 14% of the bank’s profit before tax, up from 11% the previous year. Group CEO Novan Amirudin believes this trend will continue over the next five to six years.

In a media interaction, Amirudin stated: “We envisage this percentage to grow over the next five, six years because of the role that Singapore plays today within the Asean market. It’s clearly been a very successful wealth centre, and we have also been beneficiaries of that.

“Singapore has also been an established treasury centre. A lot of multinational companies or regional companies are using Singapore as their hub to manage treasuries,” he added. CIMB views Singapore as a crucial wealth and treasury centre to connect to its broader ASEAN business.

The bank is shifting away from a universal bank approach, with plans to adopt a strategic niche approach for each market it operates in, moving away from a one-size-fits-all model. By focusing on specific market segments, CIMB plans to increase its impact and efficiency.

This focused strategy has already resulted in impressive outcomes, including a sixfold increase in Singapore dollar-Malaysia ringgit transactions and substantial growth in its Malaysian customer base in Singapore.

Innovation drives CIMB’s strategy, particularly in supporting new business sectors. The bank has started offering simple sustainability-linked loans for SMEs, created digital enrolment processes, and is actively supporting expansions in the Johor-Singapore Special Economic Zone. CIMB initiatives in data centre financing stand out, showing the bank’s forward-thinking investment plans.

Acknowledging how operating as a universal bank is unsuitable for CIMB amid shifts in digitalisation and regional competition, the bank is diversifying its income sources and focusing on niche segments. Nearly 30% of income now comes from non-interest revenue, such as fees, foreign exchange, and advisory services.

The bank’s regional strategy indicates a clear understanding of different market dynamics. In Singapore, it capitalises on the market’s strengths as a wealth and treasury hub. In Indonesia, it is exploring opportunities in Islamic banking. Meanwhile, in Thailand and Cambodia, the focus is on cross-border wholesale segments. This tailored approach helps CIMB maximise its resources and potential in each unique market.

To manage economic uncertainties, CIMB has been carefully reducing its risk profile, reducing credit losses, and keeping exposure low to unstable markets. Amirudin explains their philosophy simply: “We will operate in different jurisdictions based on how we can contribute to customers and societies in that particular market.”

By combining strategic focus, new financial solutions, and a solid understanding of local market differences, CIMB Group sees itself navigating the complicated economic environment of Southeast Asia in the near to medium term.