Business

Friday September 19, 2008

Tough time to be finance minister, says CIMB chief executive


KUALA LUMPUR: The current tumultous global environment presents one of the most challenging times for one to become finance minister, says CIMB Group chief executive Datuk Seri Nazir Razak.

He was referring to the swapping of ministry portfolios between Prime Minister Datuk Seri Abdullah Ahmad Badawi and Datuk Seri Najib Razak, Nazir’s brother.

“We wish him (Najib) all the best. Let’s wait for him to get back from New York,” he said after the launch of the CIMB Max InvestSave PSSIA-i yesterday.

Abdullah is the new Defence Minister while Najib has taken over the finance portfolio.

On the ailing benchmark Kuala Lumpur Composite Index (KLCI), which fell 39.7 points, or 3.96%, yesterday, Nazir said: “This (sharp decline) reflects the global turmoil. We cannot be immune to the global turmoil.

“We must remember that we are in a global financial crisis. Everyone is reeling from this crisis. The drop in valuations is driven by the composition in the market.”

He said these were the dynamics driving the swing in the market.

On when the KLCI would recover, he said: “It’s difficult to say. We are in uncharted territory.”

Stock markets around the globe plummeted with the collapse of investment giant Lehman Brothers Holdings Inc and the bailout of insurer American International Group.

Lehman Brothers, filing for bankruptcy, and Bank of America’s US$50bil takeover of rival Merrill Lynch & Co had also dampened investors’ confidence.

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