KUALA LUMPUR: Malaysia's first foreign Islamic bank Kuwait Finance House (Malaysia) Bhd (KFH Malaysia) is exiting Malaysia after 19 years of operation.
In a statement today, the group said Kuwait Finance House (Malaysia) Berhad (KFHMB) will be closed, aligned with its international business strategic review to focus and expand its regional market in Gulf Cooperation Council (GCC) and Middle East.
As part of ensuring a smooth transition, the group said KFHMB is exploring the potential sale of certain portfolio segments to prospective buyers, all subject to regulatory approvals.
It said that the entire process will adhere strictly to Malaysia's regulatory frameworks, ensuring compliance with Shariah principles.
Its operations here were the regional headquarters of KFH in the Asia-Pacific region, KFH Malaysia's main role is to provide innovative Shariah-based financial solutions to its customers.
The acting chief executive officer Ida Aizun Husin said KFHMB is profitable and remains solvent as the transition is approached with a strong financial foundation, ensuring that all commitments are met with the highest level of responsibility.
"Our primary focus is to facilitate a smooth transition, reflecting our deep appreciation for the business partnerships we have developed in Malaysia. "We do not foresee any service disruptions to clients, employees, and partners," she said.
"KFHMB extends its gratitude to the Malaysian government and various regulatory bodies whose support has been unwavering."
"We look forward to maintaining strong ties as we navigate through this transition," added.