BSN plans to extend services via stake in Pos Malaysia.
BANK Simpanan Nasional Bhd (BSN) plans to use its stake in Pos Malaysia Bhd to tap the postal service’s wide distribution network and services, says its general manager and chief executive Abu Huraira Abu Yazid.
He said Pos Malaysia’s 600-odd post offices and BSN’s 400 branches will provide both companies with a combined network of over 1,000 outlets and extend their reach.
“We can extend services such as Visa card applications through these outlets for distribution,” he said.
Last month, the Minister of Finance Inc and BSN took control of Avenue Assets Bhd, and through it, Phileo Allied Bhd, the listed company into which Pos Malaysia is being injected.
BSN owns 45 per cent of the special purpose vehicle, Aroma Teraju Sdn Bhd, which was used to buy a 20.1 stake in Avenue Assets. The move was aimed at retaining control of Pos Malaysia.
“Whatever services Pos is offering, we can see how we can use it at our level (BSN) either for cost savings or optimising the value of the stake,” he said, explaining that this would include the use of Pos Malaysia’s delivery and courier service.
However, Abu Huraira was quick to point out that the matter is still at its infant stage as there have not been any discussion with the Treasury nor Pos Malaysia on it yet.
“This is only preliminary… we have some ideas,” he told reporters following the launch of the BSN Matrix Visa Electron in Kuala Lumpur yesterday. Abu Huraira declined to reveal details.
To a question on whether the services offered would revert back to the time when BSN was part of Pos Malaysia, he said: “That is the basis. BSN was part of Pos Bank before. We are going back to that root, but I think that is only as a platform for better improvement.” Bank Simpanan Nasional Malaysia was established on December 1 1974 and officially launched four days later. With its launching, all duties and responsibilities under the Post Office Savings Bank Act were taken over by BSN.
Subsequently, Postal Services Department was corporatised on January 1 1992.
Analysts contacted by Business Times said both BSN and Pos Malaysia will be able to take advantage of each other’s partners for payment purpose.
According to BSN, it has 10,000 partners for whom it receives payment for.
Such a partnership will also eliminate duplication of cost, if any.
Another area in which BSN and Pos Malaysia may benefit is through short- term interest rate, like overnight rate.
As a collection centre, Pos Malaysia will be able to earn from the money received, as there is usually a lag time between the time of receiving the monies and the time for payment to the respective companies like Telekom Malaysia Bhd, Tenaga Nasional Bhd and even Astro bills.
Meanwhile, on the issue of backlog of some 30,000 computers under the Employees Provident Fund computer ownership scheme, Abu Huraira said half the computers have been delivered and the backlog will be resolved within a “couple of weeks”.
BUSINESS TIMES (MALAYSIA), 12th September 2001
