First foreign Islamic bank CEO leaves

Tags: Datuk K Salman Younis | Iskandar Malaysia project | Kuwait Finance House (M) Bhd | leaving

Written by Fong Min Hun

Monday, 01 June 2009 00:00

After almost four years at the helm of Malaysia’s first foreign Islamic bank, Kuwait Finance House (M) Bhd (KFH) managing director Datuk K Salman Younis is leaving to take up a position at the parent company in Kuwait.

Salman, speaking candidly with The Edge last week in his last interview, says, despite the ongoing financial crisis, he is confident the Malaysian team is well-equipped to handle whatever crisis might come its way.

“It’s not great to abandon ship during times of crisis because this is when you need continuity,” he says. “In times of crisis, (staff) morale is affected and you have to be very attentive to the customers, so from a timing point of view it’s not ideal. But I have been called back because there is a similar situation there and we feel we have put together a very good team in Malaysia, and have enough controls in place.”

Salman’s tenure here ended last month, and he will be replaced by Ab Jabar Ab Rahman, who is currently the acting CEO for KFH.

Looking back, Salman says KFH’s accomplishments in the last four years far surpassed his and the parent company’s expectations, growing from a corporate financing entity to a universal bank which offers retail as well as commercial services.

He says when KFH mooted the idea of a Malaysian subsidiary, consultants had told them that it would take five years before the bank would turn profitable.

“When we first came here, the banking market was dominated by 10 to 11 local banks, 26 foreign banks, a whole array of investment boutiques, fund managers and asset management companies,” Salman says. “Not easy to make an entrance into this market.”

As a result, he says, KFH decided to roll out its offerings in phases instead of the full model all at once.

“The niche for us was corporate investment banking, followed by commercial banking and retail at the end... so, we said we would do a phased rollout of our products,” he says.

Salman says KFH has advanced Islamic banking in Malaysia by offering a wider range of Islamic products than was previously available, and its education campaign to widen its appeal also made the general public aware that Islamic banking is not just for Muslims.

In hindsight, the strategy worked well, says Salman, as the Malaysian subsidiary has been showing a profit since its very first year.
During Salman’s tenure, KFH developed a portfolio of property projects, which includes the funding of the Pavilion KL shopping complex, now a landmark in Jalan Bukit Bintang, KL.

KFH also invested in Iskandar Malaysia in Johor, partnering Iskandar Investment Bhd to develop the Cultural Cluster in Medini at a projected cost of US$330 million (RM1.15 billion).

Salman tells The Edge that he strongly believes in the Iskandar Malaysia project. “Property developers in Malaysia in general go into projects with a three to four-year horizon... Iskandar is a concept that is medium to long term. If you are not a medium to long-term player, you will not be able to see what Iskandar has to offer,” he says.

Although Salman will no longer be around to see KFH’s investment in Iskandar bear fruit, he will be monitoring the progress from his position on KFH’s board.

As for his favourite achievement in Malaysia, he says the biggest challenge was at the very beginning when he was tasked with establishing KFH as a banking player: “The biggest achievement was to come to a country where no one knows you or the institution you represent, and be successful in three to four years.”

Salman is keeping a home here in Malaysia where his family will remain after he returns to Kuwait. He says Malaysia will continue to be his second home, and he will return here on a monthly basis.

This article appeared in the Corporate page of The Edge Malaysia, Issue 757, June 1-7, 2009.

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Last Updated on Thursday, 25 June 2009 17:10

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