General Electric (GE)Wants To............So GE was in the news yesterday and this time it is no longer invisible. Having financial involvements in India, Indonesia and Singapore; next hop: Kuala Lumpur. And they are shopping for a vehicle in financial services. And they are open and ready for any good propositions. Know any?
GE Interantional CEO, Fernando Becalli-Falco informed the media that it is actively searching for opportunities to get its finance operations started in Malaysia.This is because financial services is one of the most aggressive businesses in emerging economies. Right now, GE is just waiting for the right opportunity to buy a strategic stake in a local financial institution in Malaysia.
EONCapital is now quite out of the picture. So what next? Affin Bank, Hong-Leong Bank, Alliance Bank, Arab Malaysia Bank or just plain consumer finance per se like RCE Capital?
I do not think Hong-Leong Bank and Alliance Bank wants to have anything to do with GE. They are strong and guard their turf. Affin Bank. Yes, they may need a partner that is financially strong. Arab-Malaysia Bank and possibly RCE Capital-most probably if Azman can be cajoled to part with some areas of management to GE.
I am sure GE is talking to Azman, perhaps through third parties and a deal may just be hammered out for GE to come into RCE. Getting into RCE is easier because it is not under the supervision of Bank Negara. Moreover, there are imminent benefits to GE as they are in the white goods business and RCE is in the thick of it. GE may be considered a likely partner for Arab-Malaysian Bank at a later date if they proved amenable in RCE.
GE must assure Azman that there are immediate and visible gains for him if GE comes in. Azman needs to see a win-win situation developing if GE comes into RCE.
A possible carrot-perhaps GE's networks in India, Indonesia, Singapore and maybe the world will provide inroads for Azman's Arab-Malaysian Banking Group to grow its business!
Let us see what will happen to GE's plan in the next few months.
Heartsong
GE Interantional CEO, Fernando Becalli-Falco informed the media that it is actively searching for opportunities to get its finance operations started in Malaysia.This is because financial services is one of the most aggressive businesses in emerging economies. Right now, GE is just waiting for the right opportunity to buy a strategic stake in a local financial institution in Malaysia.
EONCapital is now quite out of the picture. So what next? Affin Bank, Hong-Leong Bank, Alliance Bank, Arab Malaysia Bank or just plain consumer finance per se like RCE Capital?
I do not think Hong-Leong Bank and Alliance Bank wants to have anything to do with GE. They are strong and guard their turf. Affin Bank. Yes, they may need a partner that is financially strong. Arab-Malaysia Bank and possibly RCE Capital-most probably if Azman can be cajoled to part with some areas of management to GE.
I am sure GE is talking to Azman, perhaps through third parties and a deal may just be hammered out for GE to come into RCE. Getting into RCE is easier because it is not under the supervision of Bank Negara. Moreover, there are imminent benefits to GE as they are in the white goods business and RCE is in the thick of it. GE may be considered a likely partner for Arab-Malaysian Bank at a later date if they proved amenable in RCE.
GE must assure Azman that there are immediate and visible gains for him if GE comes in. Azman needs to see a win-win situation developing if GE comes into RCE.
A possible carrot-perhaps GE's networks in India, Indonesia, Singapore and maybe the world will provide inroads for Azman's Arab-Malaysian Banking Group to grow its business!
Let us see what will happen to GE's plan in the next few months.
Heartsong
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