Quah Poh Keat likely Public Bank’s future MD and CEO, succeeding Tan Sri Teh Hong Piow

Updated: Friday October 11, 2013 MYT 9:13:23 AM

Quah likely Public Bank’s future MD and CEO

BY JAGDEV SINGH SIDHU

PETALING JAYA: Public Bank Bhd looks to have settled one aspect of its succession planning when it recently appointed Quah Poh Keat (pic) as deputy chief executive officer II. The appointment of Quah, a former independent director of the bank, suggests he could be a leading candidate to succeed managing director and chief executive officer Tan Sri Tay Ah Lek when he retires.With the appointment, effective Oct 1, Quah, 61, joined the board executive committee of the bank comprising chairman and founder Tan Sri Teh Hong Piow, Tay and Datuk Seri Lee Kong Lam, the deputy CEO of the bank and an executive director.

According to Public Bank’s website, Quah, a qualified accountant with more than 30 years of experience, was a partner and senior partner of KPMG in Malaysia for 25 years.

Prior to being appointed to an executive position in Public Bank, he had been an independent director of the bank from July 2008.

Quah is also a board member of several subsidiary companies of the bank.

“It is a succession planning at the professional level to bring in ‘younger blood’ to give confidence to shareholders that the bank can move on and is still dynamic,” said a bank executive.

“Teh and co-chairman Tan Sri Thong Yaw Hong are both 83, while Tay is over 70. The issue and concern of Public Bank’s succession planning was brought up at the bank’s AGM.”

Teh’s children have thus far not displayed any interest in taking over their father’s bilion-ringgit banking business.

Analysts said Public Bank had earlier handpicked two employees to be groomed to ascend into top management, but that both were no longer with the group. One has retired while the other has left to join the AMMB group.

Quah’s appointment to the bank, analysts said, removed a big uncertainty investors had with the banking group.

“It’s a relief. Age is always an issue and any successor is a positive for investors,” noted a banking analyst.

He said investors were worried as to how Public Bank would fill the top positions in the bank, given the advanced age of the board executive committee that has been driving the bank for years.

Although Public Bank has a lot of high-calibre people, analysts said a number of the top-performing bank managers were also at an elderly age.

“Looking for the right person has proven to be hard, as the pool is actually quite limited,” said the analyst.

In March, Public Bank had informed shareholders that its succession plan was intact and that it was preparing its top-level staff on an ongoing basis.

“In line with the Public Bank group’s objective of building long-term and sustainable performance excellence, the group has an ongoing succession planning programme for senior management staff in all key business areas,” Thong had told reporters after its AGM.

“The earmarked candidates are nurtured with relevant training, skills development programmes and job-related exposure to groom such candidates to assume higher responsibilities,” he said.