MANILA Malayan banking BHD (Maybank) is expanding its operations in the Philippines to cash in on renewed international business confidence in the country.

We are here for the long haul, Maybank Philippines President and Chief Executive Officer Hong Tat Lim said, referring to the Malaysian bank's upbeat outlook on the nation's economy.

Philippine economic prospects had brightened up following a change in president from Joseph Estrada to Gloria Arroyo, a pro-business American-educated economist.

Maybank has earmarked 212.7 million pesos (100 pesos = Rm.8.05) to finance the computerization of its operations and renovation of its 59 branches nationwide, the largest network by any foreign bank in the country.

The amount, part of the bank's overall capital expenditure program, is on top of the 197.8 million pesos Maybank Philippines had spent over the past three years.

Maybank was formerly known as republic planters bank which the Malaysian regional bank bought in 1997 to gain entry into the Philippine banking sector.

Hong said this year's outlay forms part of Maybank's 3.0 billion pesos, five-year consolidation and expansion program as it gears up to become a highly competitive bank in the Philippines.

The Philippines has 55 commercial banks, close to 20 of them either entirely or partly foreign-owned.

Maybank's program includes launch of new products such as phone and Internet banking, expansion of automated teller machine network and other related ventures.

It recently introduced the inter-country ATM system, the Philippines' first, allowing users access to 800 ATMs in the Philippines, Malaysia, Singapore and Brunei.

The bank is looking at increasing consumer business to 50 percent of its transactions with the remaining half for corporate and manufacturing accounts, and commercial business, Hong said.

"Our key financial activities have grown close to 300 percent," he noted.

He said that the bank's aggressiveness has been paying off with an average 50 percent growth in loans over the past two years.

(IRNA)