Citibank exit shows multinational banks reap colossal profits, ignore workers - NUBE

KUALA LUMPUR 18 April - National Union of Bank Employees (NUBE) said Citibank has left many questions unanswered, more so on the fate of its workers who have served the 7 Citibank headquarters and branches diligently for over 60 years in Malaysia and the loyal customers.

On 15 April 2021 Citigroup Inc announced its intention to exit from its consumer operations in Malaysia and run its operations from other countries, among them, Singapore. The bank stated that its focus is essentially on strong growth and attractive returns from the wealth management business offers.

J Solomon, General Secretary of NUBE said the CEO of Citi Malaysia has not commented on the longer-term job security of its staff, arising from the bank’s exit from Malaysia.

Instead, he merely offered a vague statement that there would be no immediate change to staffing requirements, which is not  comforting the workers, as their future prospects with the bank in serious doubt. 

"There was no prior engagement with NUBE before the announcement, on the future of Citibank  employees, especially NUBE members.

"The dearth of information and the absence of any clear commitment from  Citibank to ensure workers keep their jobs is deeply regretted. The CEO has invited us for a meeting the following week and we hope to obtain a clearer picture of this global decision undertaken by the bank,'' he said in a statement today.

Citibank is among a host of multinational banks which were given a licenses to operate in Malaysia decades ago after they gave their commitment to respect international conventions and provide equal access to the consumer banking needs for both rural and urban Malaysia. Consumer banking was, and remains, an important financial need of Malaysians to this day.

However said Solomon, having obtained  the government’s approval to open shop in Malaysia, banks like Citibank ‘quietly’ ignored their own pledges and international norms, by choosing to operate almost exclusively in major urban centres, thereby ignoring people in the rural areas.  In the process, the multinational banks reaped hefty profits that are shipped out of the country annually.

"This practice has continued unabated for many years as there was no intervention by the government nor Bank Negara to ensure the multinational banks such as Citibank served the ordinary rakyat, both in urban and rural Malaysia," he said.

According to Solomon, Citibank Malaysia’s latest move to focus exclusively on institutional business is the height of cherry picking and discriminative business practices in the country. 

"The least profitable side of banking, including over the counter service and consumer banking, is ignored despite being an essential service to the people. Instead, the bank just wants to focus on where the big bucks are, namely corporate Malaysia and wealthy individuals.

"Citibank’s move is a drastic step in that direction and may well see its branches closed or downsized with workers laid off and individual clients being left in a lurch," he lamented.

Of late, said Solomon, several banks have closed its banks physical branches in order to increase profitability and move to online banking. Concerns have been raised about the effect of the closure of branches on those that need the physical infrastructure of a branch.

"Sadly, this practice of cherry picking and discriminating customers is not confined to Citibank alone. At least two other multinational banks have drastically reduced their over the counter (OTC) services, forcing customers to go online or use ATMs, despite many of them who are not savvy with such platforms,  whilst allowing only the wealthy access to its services including OTC.*

"It is another example of multinationals banks not just neglecting their obligations to the society but display the most appalling discrimination against the have-nots," said Solomon.

"Such decisions is testimony that international banks are choosing to take a predatory path of pleasing investors with profitability and cutting costs, which have led to workers being dumped, through forced VSS, terminations and outsourcing.

"Such decisions will impact bank workers and customers. Workers with families and financial commitments will be hit particularly hard," he said.

Regretfully said Solomon, BNM has kept quiet on Citibank’s latest move, when it should have voiced its displeasure over the bank’s proposed exit from the consumer banking business. BNM’s silence may prod other multinational banks to do the same down the road, leading to dire consequences for workers and the rakyat.

"If such banks cannot operate in Malaysia on a long haul, and only see profits as the reason to do business in this country, then Malaysia can do without them.

"Banks which have a history of exiting our country should not be offered opportunities to do business here in the future," he said.  - DagangNews.com