Fresh from reducing its wage bill across the Asian region in 2015, CIMB Group Holdings Bhd — Malaysia’s second-largest bank by assets — is looking to continue optimising costs this year by reducing office floor space and introduce flexible work arrangements (FWAs) for employees in its Singapore operations.
According to sources, CIMB Singapore is planning to give up one storey of its current office space in Singapore Land Tower in Raffles Place, where it currently occupies 13,640 sf over 14 floors. It is understood that a consultant has been appointed by the bank to work on that.
In the financial year ended Dec 31, 2015 (FY15), CIMB spent RM559.5 million ($189.3 million) on rentals, up 18.5% year-on-year (y-o-y) from RM472.3 million. It is unclear how much rental savings can be made by the move, but channel checks revealed that office space in the Raffles Place area fetches between $10 psf and $12 psf.
The reduction in office space will see its employees working from home. Sources said with a smaller office, support and back-end staff with non-client facing roles will be expected to work off-site, with a “hot desk” arrangement for as many as four days a week.
Hot-desking is an office organisation system, which involves multiple workers using a single physical workstation. However, CIMB Singapore will neither be reducing headcount nor will employees see their remuneration packages compromised.
When contacted by The Edge Financial Daily, CIMB Singapore confirmed that steps are being taken to reduce operational costs.
“With the increasing cost tagged to space area required to accommodate the larger staff force we have, space utilisation and maximisation is an area that we review regularly.
“In the latest review undertaken by CIMB Securities, we have identified pockets of space, which our securities staff can occupy and plans are under way to move the staff to these spaces. With this move, we are able to vacate an entire floor in Singapore Land Tower that we are currently occupying,” CIMB Singapore said in an email reply.
“The bank has also, in the fourth quarter of 2015, begun to pilot the work-from-home and flexi-work arrangements to not only help us better manage rental costs, but also to support the Singapore government’s drive towards work-life harmony.
“We are presently undergoing a pilot test phase, where we have allowed some staff to try out the work-from-home and flexi-work arrangements to better understand the operational, privacy and security considerations needed,” it added.
According to CIMB Singapore, this is not the first time such measures are taken to trim the fat of its operations. In 2001, the company relocated some of its non-client-facing operations to its office in Mountbatten. Rentals in Mountbatten, it added, were “much lower” compared with the city centre.
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According to sources, CIMB Singapore is planning to give up one storey of its current office space in Singapore Land Tower in Raffles Place, where it currently occupies 13,640 sf over 14 floors. It is understood that a consultant has been appointed by the bank to work on that.
In the financial year ended Dec 31, 2015 (FY15), CIMB spent RM559.5 million ($189.3 million) on rentals, up 18.5% year-on-year (y-o-y) from RM472.3 million. It is unclear how much rental savings can be made by the move, but channel checks revealed that office space in the Raffles Place area fetches between $10 psf and $12 psf.
The reduction in office space will see its employees working from home. Sources said with a smaller office, support and back-end staff with non-client facing roles will be expected to work off-site, with a “hot desk” arrangement for as many as four days a week.
Hot-desking is an office organisation system, which involves multiple workers using a single physical workstation. However, CIMB Singapore will neither be reducing headcount nor will employees see their remuneration packages compromised.
When contacted by The Edge Financial Daily, CIMB Singapore confirmed that steps are being taken to reduce operational costs.
“With the increasing cost tagged to space area required to accommodate the larger staff force we have, space utilisation and maximisation is an area that we review regularly.
“In the latest review undertaken by CIMB Securities, we have identified pockets of space, which our securities staff can occupy and plans are under way to move the staff to these spaces. With this move, we are able to vacate an entire floor in Singapore Land Tower that we are currently occupying,” CIMB Singapore said in an email reply.
“The bank has also, in the fourth quarter of 2015, begun to pilot the work-from-home and flexi-work arrangements to not only help us better manage rental costs, but also to support the Singapore government’s drive towards work-life harmony.
“We are presently undergoing a pilot test phase, where we have allowed some staff to try out the work-from-home and flexi-work arrangements to better understand the operational, privacy and security considerations needed,” it added.
According to CIMB Singapore, this is not the first time such measures are taken to trim the fat of its operations. In 2001, the company relocated some of its non-client-facing operations to its office in Mountbatten. Rentals in Mountbatten, it added, were “much lower” compared with the city centre.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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