Branch closures, relocations upset some
Published on: Sunday, December 04, 2016
Kota Kinabalu: The closure of the CIMB branch in Kampung Air here has inconveniented some people and businesses in the vicinity while Ambank's relocating to the Shell Plaza and other banks in Kampung Air gained some migrating clientele.RHB at Kuwasa popular among EPF members was also moving to its Gaya Street branch as part of its downsizing. CIMB notified their Kampung Air customers that their accounts were now operative at their small new branch at the Riverson Walk, a mall next to the Gleneagles Hospital in Sembulan. But it was not exactly welcome by all their customers, although parking may be easier to find currently at a private car park pricing.ADVERTISEMENT Businesses using the bank previously enjoyed convenience due to proximity to their shops and offices in the Kampung Air vicinity.Bank Negara and the Finance Ministry had assured that the closure of 106 bank branches was not an indication that the banking industry is in crisis. Deputy Finance Minister Datuk Othman Aziz said six banks had closed their branches as part of their rationalisation plans."The closure of the branches was a commercial decision and not as speculated. The closure of the smaller branches were done as it was not commercially viable to maintain them," he said.Othman said the advent of e-commerce, online banking and competition from other banks were the reasons why the banks closed some its less profitable branches. He said 32 commercial bank branches and 11 Islamic bank branches were closed last year.ADVERTISEMENT Besides following the merger of banks it was found that there were far too many branches in a particular area for viable business."As of October this year, 58 commercial bank branches and five Islamic bank branches were closed," he said, adding that the closures would not affect the economic activities in their respective areas.
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As of June this year, Othman said that 1,425 bank employees were retrenched after opting for mutual separation scheme.He added there were 137,000 workers employed in the banking industry which represents one per cent of the country's total workforce.Othman said that bank employees were subjected to transfers but should not be victimised if there was a decision to transfer them.a total of 2,272 workers from the oil and gas sectors lost their jobs since last year.Some 1,632 workers from the oil and gas sectors lost their jobs in 2015, with another 640 losing their jobs as of September this year. Some developers claimed that banks were turning down loan applications from oil and gas contract workers who wanted to buy property from them.Stay up-to-date by following Daily Express’s Telegram channel.
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Meanwhile, an eatery is expected to fill the former CIMB Kampung Air premises which is currently under renovation. It still has a lift installed during the bank's tenancy which is ideal for a restaurant / hotel operation upstairs in view of the booming tourism trend.