MBSB expanding retail banking ops

Malaysia Building Society Bhd (MBSB), whose principal activities are housing loans and deposit-taking, plans to introduce personal loans and credit cards to expand its retail banking operations. 

Chief executive officer Ahmad Farid Omar said the introduction of the new products would complement MBSB's existing activities. 

He said the group had recently invested RM6mil to upgrade its IT infrastructure, which was essential to enhance its products and develop innovative financing products and services. 

Datuk Mohd Hilmey Mohd Taib (left) and MBSB chairman Tan Sri Abdul Halim Ali exchanging documents at the signing ceremony.

“With the new IT infrastructure in place, we can make MBSB a reputable and competitive consumer-driven financial institution,'' he told reporters in Petaling Jaya after the signing ceremony to award a 3-year IT contract worth RM2.8mil to Heitech Padu Bhd yesterday. 

The contract calls for, among other things, deployment of the latest office automation solutions, and migrating MBSB's IT infrastructure to a virtual private network that Heitech Padu will manage. 

The IT upgrade, covering MBSB's 22 branches nationwide, is expected to be fully operational by August.  

Farid said with the IT infrastructure upgraded and outsourced to a third party, MBSB would be able to concentrate on expanding its customer base and on marketing activities.  

MBSB has more than 35,000 housing loans customers, while its deposit-taking activities are skewed towards the corporate sector, which account for 80% of all deposits. 

Heitech Padu executive chairman Datuk Mohd Hilmey Mohd Taib said managed network services contracts such as that with MBSB contributed about 30% to group annual turnover. 

On its strategy going forward, Hilmey said the group was working towards reducing its dependence on the public sector and was looking overseas to expand its client base.  

The group derives some 60% of its annual revenue from government contracts. 

 Stock Watch On MBSB

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