Malaysia's top bank Malayan Banking Bhd. (Maybank) expects to expand its presence in China over the next five years to tap its booming financial services market, news reports said today.

Deputy president Mohammed Hussein was quoted by the Star as saying the bank was recently awarded a licence to provide loans to foreign customers in renminbi and hoped to expand the business to Chinese residents.

"Previously, Maybank was only permitted to provide finance in US dollars to non-residents but now we are able to finance in renminbi," he said, adding it was working towards obtaining a full resident bank licence to provide greater financial services.

Mohammed said Maybank first entered the China market in 2000 as part of its global expansion and to support Malaysian firms operating there. It now has a branch each in Hong Kong and Shanghai, and a representative office in Beijing.

"Our focus is to support our customers as they grow their businesses in China," he said.

Investment destination

Currently, its China operations contribute less than 10 percent to the bank's earnings but Mohammed said Maybank was bullish about the world's largest consumer market and expected its operations there to expand significantly.

He was quoted by the New Straits Times as saying the bank's operations were not affected by the overheating of the Chinese economy as its business was focused on sectors such as manufacturing and trading.

Mohammed said Prime Minister Abdullah Ahmad Badawi's five-day trip to China from Thursday would further strengthen business ties.

He said China's rapid economic progress and huge market made it a key investment destination for Malaysian businesses, a competitive source for imports and market for goods and services.

Last year, China was Malaysia's fourth top trading partner while Malaysia was China's seventh largest trading partner. Malaysia is also the 18th largest investor in China, with investment worth a total 7.16 billion dollars as at end of last year, the daily said. - AFP