DBS STEPS UP REGIONALISATION EFFORTS

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Appoints Senior Executives To Drive Regional Integration of Thailand, The Philippines, Hong Kong And Indonesia Interests

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RE-ALIGNS LEADERSHIP OF INSTITUTIONAL BANKING, PRIVATE CLIENT GROUPS IN SINGAPORE

[November 9, 1999]. DBS Bank said today it is establishing a Regional Integration Centre (RIC) to speed integration of the Bank's interests in Thailand, The Philippines, Hong Kong and Indonesia into the DBS network.

Ng Kee Choe, President and COO of DBS, said the Bank has accelerated this process in response to the effects on the banking system of Asia's recent economic difficulties. "The new management assignments which take effect today are an effort to ensure this process moves forward as quickly as possible, while protecting our existing, established businesses in Singapore and the region," said Ng.

"While the region is rebounding from events of the past two years," said Ng, "much work remains for banks if they are to continue to be effective intermediaries in financing consumers, businesses and other economic activities.

"Bank fundamentals in Hong Kong, Taiwan and Singapore are in good shape compared to many other markets in the region.

"Where there are difficulties, the answer is not continual re-organisation or sale of these banks for a fraction of their intrinsic value. Such moves cannot be a substitute for efforts to fundamentally restructure and return these institutions to financial health.

"The need for government intervention to restore banking fundamentals aside, at some point banks must take control over their own destinies, make the hard decisions to rationalise operations, deal aggressively with portfolio problems, and nurse themselves back to financial health.

"This is the course we have decided to take within the DBS network, and we are here moving to do just that," Ng said, "putting senior and experienced resources on the ground where they are most needed to guide remediation and integration processes."

The Regional Integration Centre being established by DBS will be headed by Chong Kie Cheong, an 18-year veteran of DBS who has until this appointment led DBS' Institutional Banking group.

Working closely with Chong on this effort will be Lim Yin Kiat who will be primarily responsible for credit risk management at these new international affiliates, and Chng Lay Chew.

In an unprecedented step compared to traditional integration processes, Chong, Lim and Chng will operate out of DBS Thai Danu Bank's headquarters in Thailand rather than from DBS headquarters in Singapore. Chong and the RIC will report directly to Ng Kee Choe, and the first priority will be to focus on DBS' Thai subsidiary, DBS Thai Danu Bank.

The move by DBS to increase the focus on regional integration is timed to coincide with completion of the first stage in the development of a systems and information technology platform to support the Bank's international operations. Work on DBS' regional systems and technology infrastructure has been underway for nearly a year.

In Singapore, replacing Chong as head of DBS' Institutional Banking group will be Seck Wai Kwong, currently Managing Director of DBS' Private Client Group. Leadership for DBS' Private Client Group is being assigned to Greg Seow, who moves from the Capital Markets and Advisory group.

DBS officials said these appointments were a continuation of structural changes that began in February of this year. Other positions will likely be filled through a combination of internal re-assignments and external hires, as the management and staffing of the RIC will require a range of skills and experience in bank operations, technology, human resources and other disciplines.

Regarding the individuals chosen for these assignments, DBS officials said:

"Chong Kie Cheong has been selected to lead the regional integration effort because of his intimate knowledge of Asian markets and his experience in institutional banking in the region and earlier DBS integration efforts. These attributes, together with the fact that he is an excellent manager and motivator, were key factors in his selection to head the RIC.

"Lim Yin Kiat has more than 26 years of experience with DBS, in operations, planning, finance and credit, and on the international front in London, Tokyo and Seoul. Few others, in any bank or any business, can boast his broad level of familiarity in these areas. And it is no coincidence that his areas of expertise are precisely those we want and need to focus on in this integration effort.

"Chng Lay Chew has 15 years of international experience in the finance function in JP Morgan before joining DBS earlier this year. He was leader of a project team that evaluated asset quality in DBS Thai Danu Bank.

"Seck Wai Kwong's prior experience with Lehman Brothers, the Government of Singapore Investment Corp. and as head of DBS' Private Client Group makes him the logical choice to replace Chong at Institutional Banking. Wai Kwong's international experience, coupled with his background in corporate and institutional finance, means DBS will not miss a step with this internal leadership change.

"Greg Seow has 18 years experience in asset management and capital markets. As a former fund manager, he knows the business of investing, and appreciates the customer's perspective. It is these attributes that DBS' private clients most seek in an investment advisor, and we expect Greg to take hold quickly and build further on the success of his predecessor."

Ng said that while DBS' decision to accelerate the pace of integration is in part a response to the effects of the Asian financial crisis, it is fully consistent with DBS' intent to network the Bank and its affiliates and provide for coordinated operations manner across the region as quickly as possible.

"Essential to DBS' strategy of being a world-class regional bank is the creation of a strong operating links with our affiliate's activities. Ultimately, the goal is to instil best practices across disciplines and across borders, and provide the full range of services expected by customers throughout Asia.