Evergreen Group Holdings and Malaysian investment bank UBB Investment Bank Limited (UBBIB) entered into a strategic partnership on June 21, 2024. Evergreen Group is set to acquire a significant stake in UBBIB.
Strategic Partnership and Its Significance
In a recent interview, Mr. David Yong, CEO of the Evergreen Group, emphasised the importance of this partnership.
"With this acquisition, the Evergreen Group is demonstrating our strong commitment to the region; we see tremendous potential in Malaysia and the region and we are here to stay."
Opportunities in Malaysia's Financial Sector
Yong highlighted the reasons behind Evergreen's entry into the Malaysian market and the opportunities they foresee.
"Long-term, we are bullish on Malaysia's financial and banking sector. Our decision was driven by our economic analysis and a strategic vision of becoming a leading investment bank in Asia. By combining our regional expertise and network with UBBIB's local knowledge and experience, we can open new horizons and unlock potential. Specifically, we are excited about the prospects in digital banking and fund management, areas where we see tremendous potential for innovation and growth."
Malaysia's banking sector has shown resilience, with its gross domestic product (GDP) growing by 4.3% in 2023. The digital banking sector, in particular, is expected to grow at a compound annual growth rate (CAGR) of 16.4% from 2022 to 2027, according to a report by Allied Market Research. This growth presents a significant opportunity for Evergreen and UBBIB to tap into emerging trends and technologies.
Leveraging Expertise for Mutual Benefit
When asked about how Evergreen's expertise will benefit UBBIB and its clients, Yong elaborated on the strategic advantages of the partnership.
"We have a track record of transforming businesses through our innovative approaches and strategic investments. Banking and investment digitalisation is a sector we are familiar with and are very passionate about. By integrating our strengths with UBBIB's established presence in Malaysia, we aim to enhance cross-border investment which would, in turn, drive innovation and growth across Asia."
Enhancing Operational Capabilities
The strategic partnership aims to enhance the operational capabilities of UBBIB. Evergreen Group Holdings COO, Mr Desmond Sim, outlined some plans in this regard.
"One of the key focuses of this partnership is to enhance UBBIB's operational capabilities. We plan to leverage advanced technologies and innovative approaches to improve efficiency and deliver superior services to clients. Our expertise and networks in fund management across Asia will be crucial in achieving these goals. Additionally, we will work closely with UBBIB to integrate best practices, in particular, cutting-edge digital infrastructure, ensuring that we remain competitive and agile in the dynamic financial landscape."
Commitment to the Malaysian Economy
Yong reiterated Evergreen's commitment to contributing to the Malaysian economy and supporting local communities. "We are committed to contributing to the growth and development of the Malaysian economy. By bringing regional expertise and resources to this market, we aim to support local businesses, create jobs, and foster economic development. We believe that our partnership with UBBIB will have a positive impact on the broader Malaysian economy and on local communities. We look forward to achieving shared success."
Malaysia's recent economic indicators support this positive outlook. The country's banking sector is well-capitalized, with a capital adequacy ratio of 18.3% in 2023, according to Bank Negara Malaysia. Furthermore, the government's focus on digital transformation and innovation in the financial sector aligns with Evergreen's strategic goals.
Future Outlook
Yong expressed optimism about the long-term prospects of this collaboration. "We see this partnership as a stepping stone to broader regional influence. Our goal is to contribute to a robust financial ecosystem that supports sustainable growth and innovation. We are committed to investing in local talent, fostering entrepreneurial ventures, and driving economic progress. This is just the beginning of an exciting journey."
As Evergreen and UBBIB embark on this new chapter, they remain dedicated to their core values of integrity, innovation, and excellence. The future looks promising, with numerous opportunities for growth and success on the horizon. UBBIB is poised to play a pivotal role in investment banking in Asia.
