- 11 months ago
Citi Malaysia’s CEO Vikram Singh discusses how strategy, deal flow, and talent are transforming corporate banking, positioning Malaysia not just as a back-office hub but as a strategic centre supporting the bank’s broader global ambitions.
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00:00This is Sawani Review. My name is Cynthia Ng.
00:13City, Malaysia, 66 years strong.
00:17The bank exited its retail business three years ago
00:20and is now fully focused on institutional and corporate clients.
00:24How is the bank navigating the opportunities and challenges
00:28in the changing economy and I think more importantly
00:30how does City, Malaysia fit into the bank's broader global ambition.
00:36Now to unpack all of this, joining me today is Vikram Singh.
00:39He is the CEO of City, Malaysia.
00:41So great to have you on the show and thank you for having us here at your office.
00:46Thank you, Cynthia, for coming here.
00:48It's really a pleasure to host you at our office today.
00:51Now Vikram, I understand that you took the helm at City, Malaysia
00:54during the major transition where City exited 13 consumer business markets,
01:01including Malaysia.
01:02Talk to us, what is City Bank in Malaysia now?
01:06Because I think for most Malaysians, when they hear City Bank,
01:10they think about personal banking, credit cards.
01:12But what is the identity now?
01:14So City in Malaysia is broadly split into three businesses.
01:19One is City Bank Barhad, which is today a pure institutional business.
01:23We have small and medium enterprises,
01:27multinationals, financial institutions, public sector clients, banks,
01:33and of course the large local corporations.
01:35So it's a full-scale offering across the institutional space,
01:39right from startup companies to the most mature companies.
01:42As far as, so that's one part of the business.
01:48The second part of the business is our shared services,
01:51where we have 3,700 employees and growing.
01:55In the course of the last six months itself, Cynthia,
01:58we've added 100 people.
02:00And these people are high-quality workforce,
02:03which are part of City's solutions network.
02:06And this 3,700 strong workforce provides services to 55 city countries globally.
02:14So it's a very high-end workforce that provides anything from, you know,
02:21anti-money laundering, KYC, sanctions, financial crime, trade finance,
02:27cash management, security services operations.
02:30So it's a very, over the course of the last 32 years
02:35that we've set this shared services business up,
02:38Malaysia has carved a niche for itself for these roles,
02:42which are considered the most critical roles for a bank,
02:46anti-money laundering, KYC, sanctions, etc., right?
02:48So Malaysia has established itself as a very high-quality center.
02:52The third is, of course, our brokerage, you know,
02:56Citigroup Global Markets Malaysia,
02:58where we're on the bursa,
03:00and where we provide, you know,
03:03brokerage services to our institutional clients.
03:05So that's what City Malaysia is now.
03:07As far as credit card is concerned,
03:09we continue to offer credit card,
03:11but those are corporate credit cards.
03:12So if you're an employee of a corporate relationship,
03:15you can still get a Citibank plastic in your wallet.
03:18That's good to know.
03:18Now, I do want to focus a little bit more
03:21on the corporate and institutional side of your business.
03:25Has Malaysia lived up to the expectations
03:29in those areas of business
03:31in the past three years that you have taken the helm here?
03:35So when I compare to ASEAN,
03:37you know, if you look at Malaysian corporates, right,
03:40Malaysian banks, right,
03:43when you compare to, let's say, other countries in ASEAN,
03:46they are actually the most international Malaysian banks.
03:49They have a presence across several markets in this region.
03:53Malaysian corporates, right,
03:55they have a presence across several markets.
03:57So I would say Malaysian corporates are,
04:01in this part of the region,
04:03are the most multinational.
04:05And that is really what's placed to our strengths.
04:09We are the world's most international bank.
04:11We have a presence in 90-plus countries in the world.
04:16That basically means that
04:17a client may want to go anywhere,
04:21Citibank will be there.
04:22We pride ourselves by saying that
04:24a city client anywhere
04:25is a city client everywhere.
04:27So you may go to Argentina,
04:30you'll get the same service as you get in Malaysia
04:32if you're a Malaysian company.
04:34All right.
04:35That's great to know the wide network
04:37that Citibank has to offer.
04:38But if I can hone in a little
04:40from where you see it,
04:42looking at deal flows, right,
04:44which client segments
04:45are really driving the momentum in Malaysia?
04:48Are they corporates, MNCs, GLCs?
04:51And are they mostly domestic
04:53or do you see a more FDI coming through?
04:55Yeah.
04:56So, again, by virtue of the fact
04:58that we have a presence in 90-plus countries,
05:01what happens is that
05:02in those 90 countries,
05:0490-plus countries outside Malaysia,
05:06we bank local companies.
05:08Like, let's say, in Europe,
05:10in South America,
05:12in North America, of course.
05:13So when those companies want to go international,
05:17want to come to Malaysia,
05:18they come to Citibank
05:19because they know we have a presence here.
05:21So we see the flows.
05:24Now, the flows have been very strong.
05:27Those flows manifest themselves into deposits
05:29as well as loans
05:31that we provide to those customers
05:32as well as FX flows coming from FDI.
05:37We saw very strong performance in 2024.
05:432025, quarter one,
05:44we saw strong performance.
05:46I think the Liberation Day
05:48kind of caused a bit of a lull
05:51because, obviously,
05:53there was a lot of uncertainty.
05:55So companies wanted to wait and watch.
05:58But after August,
06:00we've again seen the flows coming back.
06:03What other sectors would you be able to share with us
06:05that stands out to you?
06:06Data centers, electronics,
06:09medical devices.
06:10And these are all,
06:12particularly electronics,
06:13semiconductors, medical devices.
06:15These are all sectors, Cynthia,
06:17where the government wants to focus.
06:19So I think it's very important
06:20that Malaysia continues to focus
06:22on its comparative advantages.
06:24And there are many,
06:26many, such as data centers,
06:27electronics,
06:28semiconductors,
06:29aviation.
06:32It's a wide spectrum.
06:34So you mentioned Liberation Day,
06:36Trump sweeping tariffs
06:37across the world,
06:39I might say.
06:40And we have seen that
06:42come through in terms of numbers.
06:44Looking at FDIs,
06:45the latest quarter has been
06:46quite,
06:49has taken quite a dip.
06:50I think 90% quarter and quarter,
06:5290% drop to 1.6 billion ringgit.
06:55After what appears to be
06:57quite a strong year
06:58has been for Malaysia.
06:59So from where you sit,
07:01do you see this
07:02as a more Malaysia-specific problem?
07:05Or is it a,
07:06part of a wider regional
07:09slowdown that you're seeing?
07:11So,
07:12one thing is clear that
07:13when COVID happened,
07:15companies went online.
07:18They also started looking at
07:19the supply chain resilience.
07:22You heard things like
07:24near shoring.
07:26Yeah.
07:26Then geopolitics happened.
07:28It furthered the trend
07:30of supply chain reconfiguration.
07:33And now tariffs have happened.
07:34So it cements
07:35supply chain resilience,
07:38right?
07:38The whole concept.
07:39Where I feel Malaysia
07:41stands
07:42in this whole
07:44scheme of things
07:45of what's happening on
07:46supply chain diversification,
07:48resilience,
07:49continuity of business,
07:50I think Malaysia is actually
07:51in a very sweet spot.
07:53Because when I look at
07:54the effective tariff
07:57differential
07:58between let's say
07:59China
08:00and the other countries,
08:02it's the widest
08:04between China and Malaysia.
08:05So which means that
08:07Malaysia
08:08will be the go-to place
08:09for companies
08:11that want to
08:12reconfigure
08:13their supply chain.
08:14So that's one thing
08:16that I feel
08:16very, very
08:17and you know
08:18when I look at the chart,
08:20number one
08:20differential is Hungary.
08:22But when you go to Asia,
08:23it's Malaysia.
08:25And then you have
08:26of course
08:26countries coming after Malaysia.
08:28But Malaysia
08:28has the widest effective.
08:30Couple that
08:30with another very important
08:32data point,
08:32Cynthia,
08:33is that
08:33look at Malaysia's
08:36world competitiveness rankings.
08:38We are ranked,
08:41we were 34 last year.
08:43In one year
08:43we climbed 11 spots.
08:45That's a pretty steep climb.
08:47So when you look at
08:48the fact that
08:49there is
08:50economic reasons
08:51for companies
08:52to relocate
08:53manufacturing to Malaysia
08:54and
08:55Malaysia's
08:56competitiveness rankings,
09:00it's
09:00a magic formula
09:02for us.
09:03So that's the
09:04broader overview
09:06of the economy,
09:07the macro view.
09:08but let's bring it
09:08closer to banking,
09:10your business.
09:10So if you look at
09:11Malaysia's FDI,
09:12much of it is still
09:13concentrated in
09:14manufacturing.
09:16Services sector
09:17have picked up
09:18over the last couple of years,
09:19especially financial services.
09:21Are you seeing
09:23more demand
09:24as an institution
09:25for more sophisticated
09:26financial solutions
09:27looking at
09:28the rise of
09:30digital economy,
09:31data centres,
09:33ESG financing?
09:34Where can you talk to,
09:35I mean,
09:35talk to us about
09:36the banking landscape
09:38and whether
09:38City of Malaysia
09:39fit into it?
09:40Okay.
09:41So as far as
09:42services is concerned,
09:44I'm a big fan
09:44that Malaysia should,
09:46you know,
09:47just like it is
09:47promoting its
09:48manufacturing,
09:49should promote
09:49its services.
09:51We ourselves
09:52have skin in the game
09:53with 3,700 people here.
09:55You know,
09:56the per capita wage
09:57that a services sector,
10:00especially financial
10:01services sector,
10:02earns
10:03is much higher
10:04than the average
10:05per capita.
10:05Yes.
10:06Right?
10:07If you look at
10:07the wage growth,
10:08it's higher in services
10:10than in manufacturing.
10:11So when,
10:12you know,
10:12the government
10:13is talking about
10:13social mobility,
10:15rising incomes,
10:16raising the floor
10:17and raising the ceiling,
10:18I think services
10:19plays just the perfect role.
10:21And we are seeing
10:22that happening.
10:23You know,
10:23we ourselves
10:24have 3,700 employees.
10:27We hire,
10:28you know,
10:294,500 a year.
10:31We've grown 100
10:32just in the last
10:33six months.
10:35And I think
10:36in my view,
10:39there has,
10:40there is a clear strategy
10:41and the government
10:42in its NIMP
10:43did come out
10:44with the GBS
10:46as a strategy.
10:48What we also do
10:49is that in Penang,
10:51we work with
10:52USM
10:52to have,
10:55and we have a course
10:55over there
10:56where we call it
10:57GBS at USM
10:59where we create
11:00more awareness
11:01among students
11:02graduating from
11:03the university
11:03as to what is
11:05a career in a GAP,
11:06GBS like.
11:08When you talk about
11:09banking,
11:09institution,
11:10financial services,
11:11Malaysia's often,
11:12or rather,
11:13used to be seen
11:14as a place
11:16for support.
11:18No,
11:18shared services,
11:19just one of it,
11:19as a backup
11:20to our more
11:22sophisticated neighbor,
11:23for instance,
11:24right?
11:24So do you see
11:25that shifting?
11:26And if not,
11:27what will it take
11:28for Malaysia
11:29to rise up
11:30in terms of providing
11:31more high-value,
11:33sophisticated financial
11:34services
11:34and to have
11:35more global
11:36mandates land
11:37here in Malaysia?
11:38Right.
11:39So when I look
11:40at ASEAN
11:41as a region,
11:41I think,
11:42as I mentioned,
11:43you know,
11:44Malaysian banks
11:46are probably
11:47the most international.
11:48I was based
11:49previously
11:49in the Philippines.
11:50Banks in the Philippines
11:51are largely,
11:52you know,
11:53domestic focused.
11:55But Malaysian banks
11:55have a presence
11:56across ASEAN
11:57and beyond.
11:58So I think
11:59as a banking sector,
12:01they are,
12:02firstly,
12:03the Malaysian banking
12:03system is very strong
12:04and healthy.
12:06So they are
12:07in the right position
12:08to help companies
12:09expand
12:10and we're seeing
12:11that happening.
12:12So, for example,
12:13recently,
12:14we did a $2.8 billion
12:16data center financing
12:18in Johor.
12:20And Citi was
12:21a lead bank on that.
12:23Is this part
12:23of the Johor SEZ?
12:24No,
12:25this was outside.
12:25This was an existing
12:26data center
12:27which was basically
12:28refinancing its debt
12:29plus expanding capacity.
12:32So it was
12:32capacity expansion
12:33financing.
12:33And I hear
12:34that Citi might
12:35be interested
12:37in Johor SEZ.
12:38Can you talk
12:39to us about that?
12:40So, again,
12:40you know,
12:41by virtue of the fact
12:43that we have a presence
12:43in 90 plus countries,
12:46what we've done is,
12:48firstly,
12:48I believe that
12:49this is a compelling
12:49partnership,
12:51Johor Singapore SEZ.
12:53You know,
12:54you've got the land,
12:54you've got the labor
12:55from Malaysia,
12:56you've got capital
12:57from Singapore.
12:59Singapore is a
12:59AAA rated economy.
13:01Malaysia is a
13:02single-A rated economy.
13:03Malaysia is ranked 23,
13:07Singapore is ranked 21,
13:08sorry,
13:09one when it comes
13:10to world competitiveness
13:10ranking.
13:11So I think
13:12as a combination,
13:14it is compelling.
13:15So any multinational
13:16which wants
13:16to expand
13:17or operate
13:18in Asia
13:19or ASEAN,
13:21it's a great,
13:23it's compelling
13:24for them
13:24to look at this.
13:26What we are doing
13:26is,
13:27we have basically
13:28creating awareness
13:31in our global network
13:33about this SEZ.
13:35We are reaching out
13:36to our own
13:37relationship managers
13:39for these companies,
13:40creating awareness
13:40of what the SEZ is
13:42and why
13:42their clients
13:44should consider the SEZ
13:45for manufacturing
13:47and growth.
13:47so we have
13:49started seeing
13:50early signs
13:51of success
13:51and I think
13:52as companies
13:54and particularly
13:55I mentioned to you
13:56that April to August
13:58was a little bit
13:59of a lull
13:59because of the,
14:01you know,
14:01all the uncertainty.
14:02but as,
14:05now that things
14:06have settled down
14:06and the tariff issue
14:08is behind us
14:09I think
14:10we should start seeing.
14:12And those success
14:13that you have mentioned
14:13are they
14:14or have they
14:15translated
14:15into deals?
14:18Well,
14:19when we say deals
14:20those are investments
14:21coming in.
14:22So we saw
14:23very clearly
14:23after August
14:24we saw money
14:25coming in
14:26into various investments.
14:30So it is
14:30something that
14:31I feel very
14:33optimistic about.
14:35Okay.
14:37Can I just continue
14:38a bit on
14:38the Johor S
14:39because that
14:40appears to be
14:42quite a concrete
14:42development
14:43for that area
14:45and also for city.
14:46What do you see
14:48makes Malaysia
14:48compelling then?
14:49Because Johor
14:50yes,
14:52located right next
14:53to Singapore
14:53but when it comes
14:54to looking at
14:55what we offer
14:56is it talent?
14:57Is it the
14:57cost?
14:59Of course.
15:00Government incentive
15:01what is the
15:02conversation
15:02among multinationals
15:05when looking
15:05to put their money
15:06into a location?
15:08I'm not talking
15:08about five years
15:09this is long term
15:1010, 20 years
15:11billions of dollars.
15:13Yeah.
15:14So when
15:14an investor
15:16looks at investing
15:16into a country
15:17they look at
15:18three things.
15:19They look at
15:20physical
15:21and digital
15:22infrastructure.
15:24Second
15:25that they look
15:25at
15:26is
15:27policy stability.
15:30policy stability
15:32and the third
15:34that thing
15:34that they look
15:35at is talent
15:35availability.
15:37So I think
15:37on those three
15:38fronts
15:38Malaysia
15:39scores very well
15:40access to ports,
15:43access to the
15:44ASEAN
15:44regional market,
15:46center of Asia,
15:48Malaysia location,
15:50digital infrastructure.
15:51We've got
15:52amongst the best
15:52digital infrastructure
15:53in the country,
15:54in the region.
15:55and then
15:57finally talent.
15:58I think
15:58from a talent
15:59globally
16:00we're ranked
16:0133
16:01in global
16:03talent ranking
16:04which obviously
16:05is good
16:06but
16:06so I think
16:07on all three
16:08fronts
16:08Malaysia scores
16:09well
16:10and that's
16:10the story
16:10that we're
16:11communicating
16:12with potential
16:12investors
16:13that these
16:13are the three
16:14reasons you
16:14should invest
16:15in Malaysia.
16:15What is
16:16their feedback?
16:16We are inviting
16:19a lot of people
16:20to come and
16:20visit Malaysia.
16:22Come and
16:22see for yourself.
16:24And everybody
16:27who's come
16:27has walked
16:28away
16:28talking very
16:29highly about
16:30what they're
16:30seeing here.
16:32Well
16:32that leads us
16:34to the
16:34people side
16:35talk about
16:35talent a little
16:36because having
16:36MNCs and
16:37hubs
16:38those are one
16:38thing right
16:39but talent
16:40will decide
16:40if Malaysia
16:41can sustain
16:42the momentum.
16:42So
16:42what skills
16:45or competitiveness
16:46do you think
16:47Malaysia should
16:48build up
16:49to move up
16:50the value chain?
16:50What other
16:51skills do you
16:52think we
16:52sorely need
16:53right now?
16:54So Citi was
16:54part of the
16:55AI-CB
16:56Financial Sales
16:57Skills Framework
16:58Task Force
16:58which we're
16:59looking at
17:00sorry not
17:01financial skills
17:01future skills
17:02framework
17:03and where we
17:05looked at
17:05sectors or
17:06roles which
17:07will get
17:07impacted
17:08because of
17:08AI
17:09and what
17:10should be
17:10the strategy
17:11for financial
17:12services sector
17:13to basically
17:14mitigate those
17:15risks.
17:16My own
17:17view is
17:18that you
17:21know the
17:21niche that
17:22we've created
17:22in Malaysia
17:23across broadly
17:25speaking what
17:26we call
17:26surveillance you
17:28know I
17:29mentioned to
17:29you KYC
17:30sanctions
17:30company.
17:30Yes yes
17:32absolutely for
17:34us we
17:36continue build
17:37on that
17:38expertise and
17:40we create
17:40a comparative
17:42advantage that
17:44is we
17:46continue widening
17:47the gap between
17:48our nearest
17:49competitor.
17:49I think that's
17:50one area where
17:50I think we
17:52can really in
17:54services particularly
17:55put our skills.
17:56I think as far as
17:57manufacturing is
17:58concerned we
17:59couldn't agree more
18:00with the
18:00NIMP.
18:03So from where
18:04you sit for
18:05City Malaysia
18:05where are the
18:06areas that you
18:07will double down
18:08on investment
18:10in Malaysia
18:12where would
18:12that be?
18:13So I think
18:13growth of our
18:14CSC I
18:15mentioned to
18:16you just in
18:16the last one
18:17year or six
18:18months sorry
18:18we've added a
18:19hundred people
18:20so and this
18:22is not across
18:23one unit
18:23across different
18:24units so it's
18:25each unit is
18:26growing that's
18:27a positive sign
18:28it's not just
18:28one unit which
18:29is going it's
18:30important to fire
18:30on all cylinders
18:31for me right so
18:33I think that's an
18:34area where we'll
18:34continue to grow as
18:35far as our banking
18:36business is concerned
18:37our loans are up
18:38our deposits are up
18:39you know so which
18:40basically means that
18:41we are able to
18:42support our clients
18:43a lot more and I
18:46think that will
18:46continue whether it
18:47is supporting in
18:48terms of capital
18:49raising mergers and
18:51acquisitions
18:51divestitures you
18:54know helping clients
18:56connect the dot
18:57helping clients go
18:58international
18:58helping international
19:00clients come to
19:00Malaysia it's what
19:02we continue doing
19:03and doubling down
19:04on turning to
19:06personal insights
19:06so you mentioned
19:07how have you
19:09personally had to
19:10evolve your
19:11leadership style
19:13to take into
19:14account all these
19:15changes we are
19:17seeing not just in
19:18the financial services
19:19banking area but
19:19globally I think
19:21CEOs have a much
19:23tougher job than
19:24before
19:24I think the most
19:26important thing that
19:27I tell my team is
19:28continuous learning
19:29you know that's the
19:32number one secret to
19:32success right AI is
19:35going to disrupt a lot
19:36of things so before I
19:40tell my team disrupt
19:42yourself before you
19:44know and that's very
19:45important that you when I
19:46say disrupt yourself you
19:47have to continuously think
19:49of ways better ways of
19:50doing things increasing
19:52your productivity
19:53increasing you know the
19:55outputs etc and I think
19:56that comes with continuous
19:57learning we invest a lot of
20:00money through our HRDF funds
20:02into AI into Python into you
20:04know Six Sigma courses it's
20:08to build that muscle memory
20:09of continuous learning we have
20:13a partnership with University
20:16Malaya since 2021 where we
20:19run a course with them it's
20:21called the financial crime
20:23compliance certification
20:25program where so far 81
20:27students have graduated and
20:29another 35 and I have enrolled
20:31this year again it's very
20:32important because financial
20:34crime is here and now right
20:36you're seeing it all the time so
20:38by it's not just 81 students
20:40it's the multiplier impact that
20:43comes from training 81 people
20:45who basically are the first
20:47line of defense in preventing
20:49financial crime we're very
20:51happy with that so I think
20:53these are some things that we
20:54are doing to ensure that we
20:57keep the workforce future ready
20:59okay well when you mention
21:01financial crime I do wonder as
21:03a CEO what are some of the
21:05biggest risks in your
21:09periphery financial crime would
21:10probably be one of it but what
21:11are the areas that you think
21:13we need to double down on
21:14investment so covert made sure
21:16that everybody went online and
21:19that means increased that means
21:21increased online risks so we did
21:23see surge in attempts right so it
21:30could be you know the kinds of
21:32attempts could be impersonation it
21:36could be account takeovers etc so
21:40obviously as an international bank which
21:43operates in 90 plus markets we have to
21:45ensure that our clients get very very
21:48robust controls very robust governance on
21:50their operations so we have tools
21:54which basically allow them to mitigate
21:56these risks and now today everything is
22:00all you know we are 99% of our
22:02transactions today in Malaysia are digital
22:05and these are very robust platforms that
22:08we've created to ensure that our clients
22:11are you know have not only robust or you
22:17know platforms but also scalable not only in
22:22Malaysia but globally now just finally let's wrap up by
22:26looking ahead and looking at the
22:28challenges opportunities in front of you
22:30what would success look like for City
22:33Malaysia say in five years time I am I'm
22:37gonna assume that you'll be here in
22:38simulation still in five years time but
22:39what does that look like to you I think
22:42to be able to deliver a fulfilling career to
22:47each of our employees and to ensure that
22:52people live up to their potential very
22:55often when you work in Citibank you
22:58realize that you have much more potential
23:01than you thought and I think that's the
23:03signature of Citibank you know it's it's
23:05basically people living up to their
23:07potential we welcome mobility I encourage
23:10mobility 48% of our open positions were
23:14filled by internal candidates we're very
23:17proud of that we want to for people to
23:20you know grow we want people to fulfill
23:24their well whatever it would say we want
23:27people to have fulfilling careers well
23:31thank you so much we can for sharing
23:33City Malaysia's journey and Malaysia's
23:35evolving role in the wider economy it's
23:38been a fascinating conversation thank you so
23:39much for being on the show equally
23:41fascinating for me thank you thank you
23:42for a very very good set of questions
23:44and very good interview thank you
23:46thank you
24:09thanks for joining us
24:16thank you
24:18thank you
24:18thank you
24:20thank you
24:20thank you
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