Bandar Seri Begawan - The Royal Bank of Canada (RBC) is currently in negotiations with local authorities for an investment management licence, as the bank realises the potential market in the wealth management segment in Brunei.

This was revealed by top executives of RBC who were in the sultanate last week. Chief Executive Michael Lagopoulos told the Bulletin that the bank's strategy revolves around providing local access to the bank's global network, resulting in gaining access to wealth management offices all over the world.

"This new strategy would involve Brunei by having the country focus on institutional businesses. We continue to focus on trying to develop our share of the Brunei market by being a good long-term partner through our investments, licensing, as well as hiring and training of personnel for potential clients" he said.

RBC is Canada's biggest bank and the 13th biggest bank in the world by market capital and it is currently looking into developing onshore capabilities in the country by becoming the first offshore bank in Brunei, servicing government agencies and wealthy individuals professionally.

RBC's Head of Canadian International Centres Asia, Doug Gunton, told the Bulletin that Brunei has an opportunity to be part of RBC's Asian expansion plan as part of the next revolution of RBC's strategy.

"Brunei is very appealing in this context due to its geographical location, with millions of potential clients and offices situated within the region. We are now ready to go on to the next level. The application has been put through and we hope to receive a response in the next month," Gunton explained.

Upon approval of the new investment management licence, the bank hopes to create job opportunities, especially for locals as well as facilitate further expansion. "RBC will definitely be hiring Bruneians to strengthen diplomatic ties. We spend time with the Canadian High Commissioner often to better understand the level of business cooperation and relations between our two countries in a broader sense," Lagopoulos said.

Matthew Yong, president of RBC Wealth Management in Asia, believes Brunei can be a financial hub for the nations under BIMP-EAGA (Brunei Indonesia Malaysia Philippines East Asean Growth Area).

Yong, who is Bruneian, has been recognised as one of the World's Outstanding Young Private Bankers by the Private Banker International Wealth Management Summit in 2009.
He said that apart from Brunei's ideal location, the Sultanate's political and economical stability has the potential to attract investors from East Malaysia, Southern Philippines and parts of Indonesia.

Lagopoulos concurred with this statement by adding that there are other countries with strong economies that are not as desirable due to constant changes in their respective political arenas. This naturally makes people and institutions with money particularly nervous.

Since its inception in 2002, RBC has spent a successful one-billion dollars out of Brunei through the assets they manage in the Sultanate, said Lagopoulos. He said that the bank is pleased with the assets accumulated in Brunei, adding that the bank has seen a good payback from its investments and in turn encourages the bank to pursue bigger investments and developments.

When asked why RBC is opening up a client base in Brunei, Lagopoulos replied that this is RBC's standard approach "invest a bit, earn, invest again and earn more.

"With the current market trend, we tend to be more focussed and make investments to see what kind of reception we get from the market and clients. If the response from the market is positive and people like the ideas, only then do we proceed," he said. -- Courtesy of Borneo Bulletin

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