Mustapa: We'll monitor developments in the EU

KUALA LUMPUR: International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the ministry will keep a close watch on the possibility of more countries leaving the European Union (EU) following the Brexit vote last week.
“I think the concern is what will happen next with the two-year period and some statements that some countries might be thinking of a similar course of action. Those are the countries that we need to monitor. In the event that the EU gets smaller then certainly that’s a development that we will be monitoring very closely,” he told reporters at the 15th anniversary celebration of Scope International (M) Sdn Bhd yesterday.
He said so far, trade and investments in Malaysia have been smooth and there have been no disruptions since the announcement of Brexit last Friday.
The ministry does not expect any major turmoil in the next few days.
“Of course, people have been monitoring the impact on us and on companies. I must say while the market wasn't expecting it – some of them were expecting a different kind of vote so some people did not expect Brexit to happen – some have factored it into their forecast expectations.
“As far as Malaysia is concerned it’s been quite smooth and there has been no disruption at all to trade or investment flows but of course it is too early to tell,” he said.
Meanwhile, Standard Chartered Bank Malaysia CEO Mahendra Gursahani said although the bank is headquartered in the UK, it does not expect any major impact from Brexit on its business.
“We do much of our business in Asia, Africa and the Middle East. We do very little in Europe, our exposure to Europe is minimal. There is nothing we can see currently in the horizon that will affect our ability to continue to serve our customers in our markets,” he said.
“For us, Brexit is less of an event. Obviously there are going to be much wider, far reaching impact of what Brexit might do to the economy in the UK and Europe but of direct consequence to us regionally, it is minimum at this point,” he added.
Globally, the bank will invest US$3 billion (RM12.3 billion) over the next three to five years with a significant portion allocated for the transformation of its digital capabilities, and providing faster and easier services to its customers. In Malaysia, the bank will be spending 50% more this year over 2015 in technology.
“Approximately US$30 million will be invested in our centre here in Malaysia that provides dedicated world-class technology, software and system development, information technology support services, banking operations, situational awareness and response capabilities to businesses globally,” said Scope International CEO Matthew Norris.