Kuala Lumpur, 12 January 2010

SC grants stockbroking licence to Citigroup

The Securities Commission Malaysia (SC) has approved Citigroup’s application to establish a stockbroking company in Malaysia.

The license is one of the three stockbroking licences that were available for leading foreign firms following the Budget 2008 measures to strengthen Malaysia’s capital market and encourage greater intermediation of investment flows between the Middle East and Malaysia. Nomura, which was granted the first of the three licenses last year, has commenced its operations.

“We continue to receive strong interest from leading international firms to set up operations in Malaysia including in the broking industry, indicating confidence on the prospects of our capital market,” SC Chairman Tan Sri Zarinah Anwar said.

Citigroup will complement the existing broking firms in enhancing the intermediation services industry in Malaysia. Citigroup is also expected to play an important role in bringing in greater flows of funds from the Middle East, given its strong presence in the Gulf.

In granting the approval, the SC had considered, amongst others, the scope of operations that will be established by Citigroup in Malaysia, their stockbroking and capital market experience, expertise, geographical presence and commitment to the Malaysian capital market. Citigroup will be focusing their business model on foreign and domestic institutional business. Any variations to the business model are subject to the SC’s approval.