Malaysian firms team up with Indonesian brokers
Malaysian firms team up with Indonesian brokers
KUALA LUMPUR (AFP): Two Malaysian firms have formed alliances
with Indonesian groups to set up stockbrokerages in Indonesia to
tap the potential of its securities industry, broking officials
said yesterday.
Rashid Hussain Bhd., which owns Malaysia's leading broking
house by the same name, is to invest eight million ringgit
(US$3.2 million) for a 70 percent stake in the joint venture firm
RHB Securities Jakarta, with the Suwoto family owning the
remaining stake.
Another Malaysian firm, Waterfront group, headed by Chua Mah
Yu, a former partner in Rashid Hussain, had linked up with
Indonesia's PT Paramount Securities to form Waterfront Securities
Indonesia, company officials said.
Chua is to buy an 85 percent interest for 500 million rupiahs
($240,000) in Waterfront Securities Indonesia.
Jakarta Stock Exchange president Hasan Zein Mahmud, who was in
Kuala Lumpur to attend an Asian capital market conference,
confirmed Tuesday the tie-ups.
Strategic
Analysts see the links as strategic long-term investments.
"It is a good move for those prepared to take a long-term view
of Jakarta's potential. Such deals may be more expensive when the
Indonesian securities industry develops further," said Tan Teng
Boo, managing director of Capital Dynamics, a local investment
consultancy firm.
For Rashid Hussain Bhd., which is listed on the local bourse,
officials said the expansion was part of the financial group's
plan to enhance its regional presence, having ventured into
Singapore and Bangkok.
The linkages were formed as more such cross-border tie-ups
emerge following a bilateral pact signed in January this year for
more cooperation in the banking and financial services sector,
officials said.
On Saturday, Indonesian timber group Barito signed a one-
billion-dollar deal with Malaysia's listed Construction and
Supplies House Bhd. (CASH) that would result in Barito and its
chairman Prajogo Pangestu having a 70 percent control of CASH.