CIMB Group, one of Malaysia’s largest financial groups, has urged its staff to take long unpaid leave which can be up to 6 months as the company is embracing the worsening financial situation.
The program was introduced as “Staff Rejuvenation Program” and will begin on April 2009.
Regardless of the name, it is becoming apparent that more companies in Malaysia – big and small – will suffer from one of the worst’s financial downturns in the history of modern economy. It is likely that a few other banks would follow CIMB’s suit. While the country top leaders seem optimistic the country will continue recording positive growth, recession is looming in the horizon.
More than 35,000 of CIMB employees, covering not only Malaysia operation but as well as in Thailand and Indonesia will be affected with the latest offering of option. However, there is yet to be indication on how many of them would take up the offer.
According to the company’s chief, Datuk Nazir Razak, the initial response by the staff was good. He also refuted claims that the bank is preparing to lay off workers.
The bank becomes the earliest local corporation to have asked their employees to go for leave.
Few years ago, the story of deserving CIMB staff rewarded with bonuses up to 10 months of their salary was no stranger before but things could turn out very different this year.