KUALA LUMPUR: CIMB Group Holdings Bhd
and its Indonesian arm PT CIMB Niaga TBK, which have completed their mutual separation scheme (MSS) exercise, will incur about RM443.3mil in MSS cost.
CIMB said in a statement on Wednesday that savings from the headcount reduction was estimated to be RM291.6mil per year, which translates to an 18.2 months’ payback.
The group approved a total of 3,599 applications (1,891 from Malaysia and 1,708 from Indonesia), representing rationalisation of 11.1% of the total workforce in the two countries.
The country’s second-largest lender announced its first-ever group-wide MSS, which was voluntary, in mid-May to improve its efficiency level. The deadline for all applications for the MSS in Malaysia was May 29.
“The MSS was introduced as part of our continued efforts to enhance efficiency and productivity within the group. With the completion of the MSS, we are on track to meet the targets set in our cost-to-income plans outlined in our T18 strategy,” said CIMB Group chief executive Tengku Zafrul Tengku Abdul Aziz.
“The MSS exercise has also benefited successful applicants and I would like to thank them for all their contributions and wish them all the best in their future endeavours.”
The CIMB group is present in nine out of 10 Asean countries, but the MSS exercise was not implemented outside the two countries.
and its Indonesian arm PT CIMB Niaga TBK, which have completed their mutual separation scheme (MSS) exercise, will incur about RM443.3mil in MSS cost.CIMB said in a statement on Wednesday that savings from the headcount reduction was estimated to be RM291.6mil per year, which translates to an 18.2 months’ payback.
The group approved a total of 3,599 applications (1,891 from Malaysia and 1,708 from Indonesia), representing rationalisation of 11.1% of the total workforce in the two countries.
The country’s second-largest lender announced its first-ever group-wide MSS, which was voluntary, in mid-May to improve its efficiency level. The deadline for all applications for the MSS in Malaysia was May 29.
“The MSS was introduced as part of our continued efforts to enhance efficiency and productivity within the group. With the completion of the MSS, we are on track to meet the targets set in our cost-to-income plans outlined in our T18 strategy,” said CIMB Group chief executive Tengku Zafrul Tengku Abdul Aziz.
“The MSS exercise has also benefited successful applicants and I would like to thank them for all their contributions and wish them all the best in their future endeavours.”
The CIMB group is present in nine out of 10 Asean countries, but the MSS exercise was not implemented outside the two countries.
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