Bank Negara to help its laid-off staff

Bank Negara to help its laid-off staff

KUALA LUMPUR (AFP): Malaysia's central bank said yesterday it would help find new jobs for 700 workers it plans to retrench.

"A meeting will be held soon with local commercial banks, insurance companies and securities firms to facilitate their re- employment," the central Bank Negara's deputy governor, Fong Weng Phak, was quoted by Bernama news agency as saying.

Staff who had opted for voluntary retirement would also be informed of offers available from the institutions.

Deputy Prime Minister Anwar Ibrahim, who is also finance minister, announced Tuesday that Bank Negara would cut more than 700 jobs in stages, aimed at shedding redundant staff in a rapidly modernizing industry.

The "voluntary separation" scheme will involve the closure of six of Bank Negara's 12 branches and the end of its retail banking services,

The shedding of 24 percent of its 2,865 staff represents the first lay-offs in Bank Negara since it was set up 37 years ago.

Following the closure of its six branches, Bank Negara is expected to sell properties at prime sites in various states, banking sources said, adding that there were already bidders for the properties.

National Union of Bank Employees secretary-general, K.Sanmugam, said Wednesday that the union would not interfere in the retrenchment program.

The central bank turned around a loss of 668.3 million ringgit (US$267.3 million) in calendar 1994 into a profit of 50.8 million ringgit last year.