KUALA LUMPUR, 26 Aug 2025:
With the Merdeka celebration just days away, the National Union of Bank Employees (NUBE) is again championing a cause close to the nation’s heart: that stewards of local banks should be, unequivocally, Malaysian.
Beyond patriotism, NUBE is urging Bank Negara Malaysia to mandate a five-year limit on the tenure of bank CEOs.
The proposed rotation of CEOs, the union tells the central bank, would not only pave the way for a fresh influx of talent and perspectives but also fortify the bulwarks of risk management and corporate integrity that underpin the nation’s financial stability.
“After 68 years of independence, it is unacceptable to assume that Malaysia lacks the talent to produce authoritative CEOs,” NUBE general secretary J Solomon said in a letter to Bank Negara governor Shaik Abdul Rasheed Abdul Ghaffour, also copied to members of Parliament.
Articulating the need for term limits, NUBE said leaving CEOs in their positions for too long would result in unhealthy concentration of power, weak accountability, ineffective succession planning and resistance to new ideas and innovation.
Executive entrenchment also led to workplace abuse and neglect of employee welfare, the union said.
“A five-year rotation system will open opportunities for other talented leaders, inject fresh perspectives, and strengthen risk management and corporate integrity,” Solomon added in his letter.
This isn’t the first time NUBE has raised the banner for Malaysian leadership in the banking sector.
While NUBE’s focus is squarely on local banks, the issue of foreign leadership within Malaysia’s financial landscape is not entirely novel, with several foreign-owned banks operating within the country currently having non-Malaysian citizens at their apex.
For instance, Bank of America Malaysia is led by CEO Gautam Padmakar Puntambekar, and Citibank’s local operations are helmed by CEO Vikram Singh — both Indian citizens.
In contrast, a notable shift occurred at Standard Chartered Bank Malaysia with the appointment of Mak Joon Nien, who became the first local to assume the coveted country CEO position at the bank.
NUBE’s renewed vigour in the matter appears to have been stoked by developments within the industry in May, after the appointment of Animesh Mukherjee, an Indian expatriate, as group chief people officer (GCPO) at CIMB.
Mukherjee’s ascent to the pivotal role at the country’s second-largest bank — in less than a year of his joining — was perceived by NUBE as a significant misstep. The union cited a lack of cultural awareness and empathy on CIMB’s part, cautioning that such appointments could sow seeds of discontent in what had traditionally been a harmonious workplace environment.
“Nearly 100% of CIMB’s workforce is Malaysian, yet the GCPO’s decisions reflect a detachment from their well-being and aspirations,” NUBE asserted in a statement released at that time.