Malacca Securities to expand to Johor, Sabah and Sarawak

New outlet: (from left) Malacca Securities executive director (head of operations) Fok Chuan Meng, Tan, Penang branch head Chuah Wooi Geap, founder and director Lim Teck Meng and managing director Lim Peng Cheong at the launch of the Penang branch.

GEORGE TOWN: Malacca Securities Sdn Bhd plans to set up outlets in Johor, Sabah and Sarawak soon.

Malacca Securities senior executive vice-president Tan Chee Siong said the trading outlet in Johor would be set up by the end of 2012, while the two branches in Sabah and Sarawak next year.

Tan was speaking at the launch of Malacca Securities new trading outlet in Fettes Park, which is the third branch in the country after the Petaling Jaya and Subang Jaya.

Also present were Malacca Securities managing director Lim Peng Cheong and executive director (head of operations) Fok Chuan Meng.

Tan said the target of the Penang branch was to achieve between 1,000 and 1,5000 new accounts in its first year of operations.

”We expect 50% of the new accounts to come from on-line traders.

”On-line traders currently account for 30% of the company's revenue.

”In two years, the contribution should reach 50%,” he said.

The company has 20,000 customers, of which 2,000 are engaged in on-line trading.

The Penang outlet would leverage on the company's promotional brokerage fee of 0.035% or RM6 per contractual transaction which was among the lowest in the country, Tan said.

”The promotional brokerage fee is valid until the end of the year. After that, the fee will revert to 0.05% per contractual transaction.

”Having a low brokerage fee is key to generating growth during bearish market times,” Tan said.