China Construction Bank opens branch in Penang

GEORGE TOWN – China Construction Bank Corporation (CCB), reportedly the world’s second largest bank by capitalisation, opened a branch in Penang in a grand ceremony at the E&O Hotel here today.

The branch is its third in Malaysia after the other outlets in Kuala Lumpur and Labuan.

Penang Chief Minister Chow Kon Yeow said the arrival of the bank is in line with the state’s reputation as one of the top investment recipients in the country.

Analysts who attended the glittering launch also noted that CCB may provide the necessary capital injection as the state seeks to expand its infrastructure to cope with growing pressure on road traffic.

CCB, which is a state-owned entity in China, can also ride on Penang’s global reputation as a major manufacturer and supplier of semiconductors and medical devices.

CCB chairman Tian Guoli cited Penang’s growing economic success as one of the pull factors for the bank to decide on having a physical presence here.

Besides CCB, there is also a Bank of China branch in Penang.

CCB has around 13,600 domestic branches in China, and is present in 30 countries with 200 overseas branches.

Addressing the guests at the opening, Chow said that China and Malaysia enjoy a close friendship and both are committed towards a win-win cooperation.

“Over the past six years, CCB has actively supported the construction of major projects and the development of national industries with a focus on green/ESG (environment, social and environmental) objectives to promote China-Malaysia bilateral trade.

“Such measures have also been instrumental for our economic, social development and cultural exchanges between our two countries,” he said in his speech.

Penang can be a hub for CCB to tap the northern region’s economic output, he added.

Since 2008, Penang has achieved an investment volume of RM200 billion. The state’s economy grew by 13.1% in 2022 and the gross domestic product reached RM112.1 billion, the top in Malaysia, he stressed.

“We are also the country’s main exporter, accounting for 34.6% (of total exports) in the third quarter of 2023.”

Penang will still face many challenges in various aspects in the future, but the state government will continue to expand its economic advantages, especially in areas like tourism, manufacturing and digital economy with the aim of achieving a 5.4 % growth by 2025, he said.

Chow also advocated working with CCB in tapping the potential of China’s Belt and Road Initiative.

Other dignitaries present were China’s acting consul-general in Penang Ding Qiao, Cheras MP Tan Kok Wai, state executive councillors Wong Hon Wai, Lim Siew Khim and Jason H’ng.

CCB international business department’s general manager Sun Jianbo, its credit approval department general manager Zhang Minghe, e-finance department general manager Jiang Jun, and chief executive officer for Malaysia, Wang Qijie, were also present. – The Vibes, November 8, 2023