FOREIGN parties have expressed an interest in acquiring a stake in Malaysia standalone investment banks (IBs), after the recent liberalisation of the financial sector.

This was disclosed by ECM Libra Financial Group Bhd's executive chairman and chief executive officer Datuk Seri Kalimullah Hassan said today.

However, he remained tight lipped, as to whether ECM Libra is one of the IBs concerned. The equity limit for foreign investors has been raised, to up to 70 per cent in local Islamic and investment banks, as well as insurers. Previously their ownership was capped at 49 per cent. "There has been interest shown in some of the standalone IBs," Kalimullah told reporters after the group's annual general meeting today.

"In the past, the foreign parties always wanted a 51 per cent stake but were only allowed 49 per cent. Now, with 70 per cent, it has become attractive for them," he said.

Kalimullah said ECM Libra had made a promising start to 2009 with its brokerage income increasing almost threefold. The group's brokerage income stream, however, had suffered a drop of 60.8 per cent with net brokerage of RM26.4 million achieved in its financial year ended January 31, 2009 compared to RM67.4 million in the last financial year due to the lacklustre turnover and trading performance of Bursa Malaysia.

ECM Libra registered revenue of RM74.2 million for its financial year ended January 31, 2009, as compared to the RM157.6 million recorded previously. The group made an impairment loss of RM24 million on its investment in associated companies to better reflect the fair value of the investments.

The group also made a pre-tax loss of RM20.2 million as compared to a pre-tax profit of RM80.7 million for the previous financial year.

"We'll do much better this year compared to last year," he noted.

He added that the group plans to double its remisier base by the end of 2010 from 200. -- Bernama