KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways
Cathay United Bank, a subsidiary of Cathay Financial Holdings, plans to expand aggressively in Asia as global supply chains diversify away from China.
Vietnam is the main focus, with headcount to rise by 50% from 200 staff, alongside investments in technical capabilities.
Expansion also includes Hong Kong (staff to 200 by 2026), Singapore (+20 staff for private banking), and new branches in Japan and India.
The strategy is driven by the “China plus one” trend, tariff disruptions under the Trump administration, and rising intra-Asia trade flows.
The bank seeks to capture business from Taiwanese and Chinese tech manufacturers and Japanese corporates investing in Southeast Asia.
Strategic Expansion
Cathay United Bank sees Vietnam as its “second home,” positioning itself to ride on the accelerated shift of manufacturing bases out of China. Despite US tariffs — including a 20% levy on Vietnamese goods and potential hikes on Chinese exports — the bank expects Vietnam’s role as a key beneficiary of supply chain diversification to strengthen further.
Beyond Vietnam, the bank is scaling up in Hong Kong, leveraging cross-border trade with Shenzhen, and in Singapore, where it will expand its private banking business. Approvals for Japan and India branches further broaden its geographic footprint, aligning with customer flows across Asia.
Market Implications
Cathay United’s overseas buildout highlights the increasing role of regional banks in supporting supply chain realignment. By focusing on financing trade, investment, and private banking services for corporates expanding across Asia, the bank is positioning itself as a key partner for Taiwanese, Chinese, and Japanese clients.
The expansion strategy underscores two structural shifts:
Geopolitical reordering of supply chains driven by tariffs and US-China tensions.
Financial services demand growth in Southeast Asia, especially in Vietnam, Thailand, and Singapore.
Outlook
Cathay United Bank’s diversified Asian strategy should support long-term growth, although near-term challenges include tariff volatility, regulatory hurdles, and competitive pressures in emerging markets. Still, with approvals secured in Japan and India, and strong momentum in Vietnam, the bank is on track to deepen its role in financing Asia’s evolving trade ecosystem.
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