PETALING JAYA: Malaysia Building Society Bhd (MBSB) is targeting a 3% growth in revenue and loans this year as it sees selective bright spots in the consumer retail and trade financing segment.
In the consumer retail segment, MBSB's group president and chief executive officer, Datuk Seri Ahmad Zaini Othman said there was a steady outlook in personal financing to civil servants amid the continued uncertainties due to the Covid-19 pandemic.
"In the consumer segment, the personal financing from government servants provides a greater stability for us since there are no retrenchments on the cards.
“This (segment) provides us a very stable level of income, and we will continue to push this segment. For this, we are also ensuring that salary reduction is done right at the source," Ahmad Zaini said at MBSB's post-AGM press conference.
"Another segment is the trade finance segment, and we have great ambitions to push it beyond the present level. Right now, we have achieved a turnover of RM5bil to RM6bil of trade financing facilities in turnover this year alone. We would like to push this higher as well," he added.
Ahmad Zaini also said MBSB has to be very selective in onboarding of new businesses in the current prolonged Covid-19 pandemic environment.
"We are very mindful of how we do this onboarding. This is part of our big strategy to ensure the quality of our assets are being observed, we will have to avoid the tourism and airline industry," he said.
"We are looking at the right segmentation. While we have to be a bit more cautious with the retail segment as we would basically suffer losses from any (lockdown declaration) by the authorities.
“Moving forward, we must have the right segment and the ones that have deteriorated are the existing assets but the new assets will go through a very rigid appraisal process to ensure there will be no slippage in asset quality," he added.