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Any employee in the group is eligible for the initiative - called the Staff Rejuvenation Programme - and the option would be granted after evaluation by senior management, said Mr Nazir.

MALAYSIA'S top investment bank, CIMB, on Monday urged its staff to go on unpaid leave for up to six months in a move to cut costs because of the global economic downturn.

CIMB Group chief executive Nazir Razak said the offer to its 36,000 staff was aimed at avoiding layoffs and would involve employees across nine countries, including Indonesia, Thailand and Singapore, the national news agency Bernama reported.

'We don't have a target, but there will be cost savings,' Mr Nazir said. 'It's a positive move and a win-win situation.' He added that in the current economic situation, 'it is fully understood that there is spare capacity'.

Any employee in the group is eligible for the initiative - called the Staff Rejuvenation Programme - and the option would be granted after evaluation by senior management, said Mr Nazir.

CIMB officials confirmed his comments and said the unpaid-leave programme will start next month. The move, however, will not affect the group's operations as leave is subject to approval and the company can recall the staff when necessary, officials said.

CIMB, the country's second-largest bank, is the first major Malaysian company to ask staff to consider taking unpaid leave.

The surprise move comes just after a labour group said on Sunday that more than 26,000 people have lost their jobs in the country so far this year.

CIMB's move reflects increasing difficulties for Malaysian corporations as the country faces the prospect of its first recession in a decade.

The government said earlier this month it expects the economy will grow 1 per cent in the best-case scenario this year and shrink 1 per cent in the worst-case scenario.

It had previously forecast growth of 3.5 per cent.

Economists have warned that the RM67 billion (S$28 billion) of stimulus measures announced by the government recently may be insufficient to avoid a recession. -- AGENCE FRANCE-PRESSE, ASSOCIATED PRESS

Comments (23)

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written by sedan, March 31, 2009 14:50:16

This is just the beginning. If a well-capitalized bank like CIMB is urging staff to take six months of unpaid leave, think of what is happening to the real economy.

AT least CIMB is being honest with its staff. How many Malaysian factories will leave its workers unpaid permanently? This is exactly what is happening in China. Maybe, there is a point here in keeping foreign workers. Malaysian workers might sue!!!

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written by Kunta Kinte, March 31, 2009 14:55:34

This is the brother Najib was going to ask for financial advice for the nation. Just think for a moment where we are heading.

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written by Task Force 101, March 31, 2009 15:01:12

Great. They never did anything when the CIMB staff was there. Now nothing will get done since no one is working.

This bank is so finished.

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written by sedan, March 31, 2009 15:05:13

Najib and this brother aren't too close. Otherwise, CIMB would not make this announcement so soon, esp since the boss' brother is going to be Prime Minister in 4 days.

I admit CIMB had overstretched itself, but so did other local banks through their "investments."

Our Ah Longs will now be busy loansharking or they will be co-opted as "repossesers."

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written by Ken Liew, March 31, 2009 15:05:28

So, when will our GOV department start the program called "Reducing staff". We all know MOST of them are not working at all for example the sleeping beauty. And we do know, the OFFICE Management will come to work after 10.am and lunch at 12pm. these type of working enviroment, yet they take FULL sallery. Mind i tell you all. The tukang tandas and pencuci lantai are ostly foreign workers as well. If GOV tells us to stop using foreign, they should set an example to US.

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written by malsia1206, March 31, 2009 15:09:30

Staffs who opt for this exercise would only be granted after evaluation from the senior management. Which means essentially you know you are excess baggage if they decide to grant your unpaid leave. What a refined manner for selective screening of CIMB staffs. Now you know how they separate the grain from the chaff.

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written by smeagrooo, March 31, 2009 15:47:23

haha. cimb will org more contests like Dream, Deposit, Drive to lure pppl to open accts and save money while gvng away shitty interest and indirectly it is a form of gambling becos everyone who opens an account is hoping to strike it big like winning a mini-lottery.

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written by smeagrooo, March 31, 2009 15:49:35

dont worry la cimb staff. no job, govt will absorb u into their newly created jobs like, like, like, errr, errr, hmmmm, apa nama itu job, adoi, alamak!

ask najib lo. we are INSULATED.

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written by archie, March 31, 2009 15:49:37

All is not lost yet for emerging economies. Read the latest (March 30) issue of Newsweek magazine.

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written by Durnfordi, March 31, 2009 15:54:05

My brother worked in CIMB and he told me that the bank continue to hire fresh graduates despite the economic downturn! What stupid business sense is this? Perhaps the Head of the Group’s Corporate Resources Division - Hamidah Naziadin (details found on CIMB website) should resign for her short-sightedness in not planning ahead and over-hiring! 6 months unpaid leave? Let those who are earring 10-15k and above volunteer lah! From what my bro told me, a lot of those who is in the position of Assistant General Managers are earning at least 10k or more! Those in higher position earned more. Let these people volunteer for the 6 months unpaid leave! What say you CIMB?

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written by sydput, March 31, 2009 15:58:09

Wot? so soon after taking over a Thai bank? didn't they overpay taking over a singapore brokerage C-K Goh or something?
Next on the list could be Maybank for similar overpaying of Indonesian and pakistani(of all places) banks.
The guys taking the leave will be the mostly malay staffs. The guys making the most money are the mostly malay (with indian blood) wheeler dealers like Daim Zainuddin, who had some shares in the indonesian bank and good networking with temasek, the owner.

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written by ahmadneil, March 31, 2009 15:59:19

CIMB is just adding fuel to fire.When everyone is cutting household cost to survive this financial crisis,CIMB is making lives more difficult.How are these people going to survive during these 6 month when they have to pay car loan,housing loan,children's fees,food bills,fuel,toll etc.When CIMB makes money the staff didn't get bonuses and when this financial crisis happens,the staff have to take the bullet.
So Razak name are associated with shame.The elder brother have shamed all malysian with his link to Altantyua's murder and now the younger brother is shaming CIMB's name by asking their staff to take 6 months of unpaid leave.Nazir should be the one to take 1 year of unpaid leave and he should not be entitle to any bonus.All top staff must half their salaries and no bonus for them.To save CIMB everyone have to make sacrifices,not the staff alone.
This announcement by Nazir is ill-timed and make without serious consideration about the welfare of the staff.He MUST step down!

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written by Old Man, March 31, 2009 16:02:40

Even parents CANNOT afford to spoonfeed their children forever! So is the NEP.
I think Mr Nasir ( brother of Finance Minister Najib ) is rather diplomatic in giving the true scenario of our economy. TQ

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written by rpremkumar2u, March 31, 2009 16:32:25

6 months no pay leave. Has it ever been the norm? Right here in Malaysia? I knew a Dutch couple who were vacationing here in Malaysia, that their occupations in the printing industry allowed them to rake in enough for half of the year to go on leisure for the other half. True wealth in any case is measured not by how much you have in the kitty but by how long you can sustain your lifestyle on what's available in the kitty when you are sans job. How are the terms going to be? Suppose the bank staff has taken a loan to take out a mortgage to be serviced monthly, CIMB is going to give them an extension of 6 months, is it? Interest free? Bills have to be paid. How many can sustain on the AVAILABLE funds in their savings? Can someone enlighten me on this? I have no f&*%^$g idea of how this works.

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written by cllim123, March 31, 2009 17:44:33

Why don't Nazir announce a director and top management pay cut of 50% for 1 year as a show of sincerity? They can very well afford it. And give staff half pay leave for 3 months for starts.

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written by batsman, March 31, 2009 18:21:05

6 months unpiad leave and it is called staff rejuvenation. This is classic UMNO-style talk. I think the CEO needs permanent rejuvenation.

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written by wongnoball, March 31, 2009 18:41:26

6 MOTH ....

Seriously DON'T Fall into this TRAP. DON't Take the leave take the VSS, Redundancy Payout and Move On. A company can do without you for 6 months means it can do without you for 60 Years. This is a HR SCAM and you will be stupid to Fall to this Trick. Don't volunteer and let them give you a Severance package. Give their HR(human Remains) some job to do to see who to sack. In the meantime, you still get paid while they take 1 month to work out who to go. Don't give HR an easy job to determine who to go. No difference in Politics in Malaysia, do your very worst to disrupt regim kejam UMNO ganas but be unknown, anonymous and unseen, so that those useless SB, Police and UMNO tools have extra work to do and research.

After the VSS go and look for another Job and Forget about this Munafik attempt of CIMB to promote an image of retaining talent and concern for employees. Stuff CIMB, max out their head ache. Even if you remain and stay, you are expected to take up the slag of 4 ('on leave employee') or face the SACK without VSS because of poor performance. Trust me it is no point hanging around, all an illusion that continues to demoralise you sooner rather than later...!!

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written by raven1958, March 31, 2009 19:27:50

It's BMF all over again isnt it....kasi tutup lagi bagus. Tax payers tak payah lah sakit macam ni....

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written by thor, March 31, 2009 19:36:06

Surprisingly how come no one propose pay cut for high salaried staff both in GLC and in GOVT, show lah yr sincerity man .

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written by AsamLaksa, March 31, 2009 19:43:15

DO NOT TAKE IT. SEEK ADVICE

If you have a union, contact them first. If no union, contact an employment lawyer. You can have a representative for the group of you to consult a lawyer for advice.

Why all these? Because first thing you need to do is find out about your rights. Find out what is in your employment contract. Once you know your rights, then you can evaluate what is more advantageous to you and decide. Do not let a company rail-road your rights. Malaysia is a country where there is little or not welfare benefits if you lose your job.

Other cost cutting alternatives include reduced work hours which comes with reduced pay or collective pay reduction with higher level staff suffering a bigger cut than lower level staff. Some even give you partial pay to stay at home. Even if you are made redundant you get paid and then you can go look for another job.

Bottom line, find out your rights first.

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written by Msian Idol3, March 31, 2009 21:52:05

Why don't he start the ball rolling by setting an example that he work one year for free. He can afford it.

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written by asiana888, March 31, 2009 22:07:48

Maybe when everybody go on leave ..... all 36,000 employees. The bugger will go transfer all the money to his own account and make the NPL records of all UMNO goons disappear!

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written by Sutha, April 01, 2009 01:23:50

The 10K - 15K per month salaried ones are legacy staffs of the former Bank Bumi. Why else do you think Petro-Nas had to pump in twice to save it. The govt had to pass the badly managed (mismanaged, would be the better word) bunk to commerce group. Want more salary and bonus but not work to earn that money.

There is no 6-months' unpaid leave in the employment contract nor collective agreement. Just hope that there is no unilateral further extension by the employer for another 6 months and so on until retirement date.

All the bests, leave takers!

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