CIMB Restructures Singapore Business

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The Malaysian bank is letting go of three business heads in Singapore, following a review of its operations.
Changes are afoot at CIMB Singapore, as the bank has moved to ax its consumer, commercial and corporate banking heads: Josandi Thor, Yong Jiunn Run and Lai Ven-Li, citing an internal memo viewed by the portal.
The bank cited the poor performance brought about by the pandemic, which required it to reshape its business portfolios to drive cost efficiency across the bank. The bank said it recently adapted its Forward23 five-year growth plan, launched in 2018, in response to the pandemic.
CIMB Singapore’s posted losses of 939 million ringgit ($229.42 million) for the first half of the year, largely due to impairments.
However, there have been talks of restructuring since the middle of the year and the possibility of wider layoffs.
An observer told the publication that CIMB Singapore CEO Victor Lee, who was appointed earlier this year, was looking to restructure the senior management team and bring in people he had previously worked with.
Given the business pivots moving forward, we have carefully deliberated with group management on the optimal structure to deliver our Forward23+ strategy. This entails streamlining the leadership structure and reducing the CEO’s span of control to focus on key areas impacting the business, Lee said in the email.
Questions & Answers
Q.What is the primary reason CIMB Singapore is making these changes to its business structure?
What is the primary reason CIMB Singapore is making these changes to its business structure?
The bank cited poor performance caused by the pandemic as the main driver for reshaping its business portfolios. This is aimed at improving cost efficiency across the bank's operations.
Q.Who are the senior executives leaving CIMB Singapore as part of this restructuring?
Who are the senior executives leaving CIMB Singapore as part of this restructuring?
The three business heads departing from CIMB Singapore are Josandi Thor, Yong Jiunn Run, and Lai Ven-Li. They were in charge of the consumer, commercial, and corporate banking divisions respectively.
Q.What was CIMB Singapore's financial performance in the first half of the year?
What was CIMB Singapore's financial performance in the first half of the year?
CIMB Singapore posted losses of 939 million ringgit ($229.42 million) for the first half of the year. These losses were largely attributed to impairments.
Q.How does the CEO plan to adapt the leadership structure moving forward?
How does the CEO plan to adapt the leadership structure moving forward?
CEO Victor Lee aims to streamline the leadership structure and reduce his span of control. This is intended to allow for a greater focus on key areas impacting the business and to deliver the Forward23+ strategy.
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