1. The first issue that faced by CIMB Bank in the global market is a decline in the value of a country’s currency that influences on business. This currency crisis affects the country’s economy because of the contraction in Gross Domestic Product (GDP) growth. When the GDP’s country fall, the country’s output also is falling. The people will suffer the effect of currency crisis such as they have low wages and unsafe working conditions because business wants to lower costs.
Most businesses experience the slowdown in the cash flow because loses the demand and profits. In order to boost the cash flow, the cash inflow must increase by taking some steps such as making the customers of business pay faster. They can encourage by giving customers a discount or giving the reward for those who paid faster. Other than that, according to TechPluto Staff (2014) the business can develop a plan for cost reduction such as reduction in the salary of employee, choose which project or vendor should get priority and postpone the other mega project.
For example, when Malaysia’s currency was decline, CIMB Bank will face the problems such as slowdown of cash flow, fewer employees needed and so on. Therefore, there are certain steps that CIMB bank takes to overcome these problems when currency crisis happen. CIMB bank tries to cut cost by minimizing the number of their employees. Such as the old worker that have close to reach the retirement age, the bank will give retire a little bit early and