KUALA LUMPUR (March 1): Hong Leong Bank Bhd (HLB) has established a commercial- banking unit in Cambodia. The move will see the Malaysian entity starting operations in the Indochina country within the first half of this year.
In a statement to Bursa Malaysia today, HLB said it had yesterday (February 28) obtained the certificate of incorporation for its wholly-owned subsidiary Hong Leong Bank (Cambodia) PLC (HLBCAM) from Cambodia's Commerce Ministry.
"The capital of HLBCAM is US$37.5 million which is approximately equivalent to RM116.18 million at current exchange rates. HLBCAM shall commence operations in Cambodia within six months from the date of issuance of the approval in principle," HLB said.
The National Bank of Cambodia had on January 11 this year given approval in principle to HLB to set up and operate a wholly-owned commercial bank subsidiary in Cambodia.
HLB said its move to establish a presence there is in tandem with the group's plan to expand its reach within Asia.
"With the establishment of a bank in Cambodia, HLB will be able to contribute to the banking sector as well as the broader economy of Cambodia which has a population of over 14 million," the company said.