Few realize that RHB, a major Malaysian bank, is named after its founder, Tan Sri Abdul Rashid Hussain. And if you’ve never heard of him, you’re missing out on one of Malaysia’s most fascinating financial stories.
A kingmaker in the corporate world of the 1980s and 1990s, Rashid built a financial empire from scratch, making bold, high-stakes deals that transformed a stock brokerage into a banking powerhouse. His name became synonymous with some of Malaysia’s boldest banking acquisitions, solidifying his reputation as a visionary dealmaker.

Yet, despite his name being stamped on RHB Bank, his empire eventually slipped through his fingers. Caught in the perfect storm of a financial crisis, corporate takeovers, and shifting political tides, Rashid saw the bank he built from the ground up change hands.
Now, Rashid has taken on a new challenge as Chairman of Lembaga Tabung Haji (TH), Malaysia’s Islamic pilgrimage fund. But before we get into that, let’s take a closer look at how he rose to prominence and left a lasting mark on Malaysia’s financial landscape.
From Broker to Banking Tycoon

Born in 1946, Rashid’s financial career began abroad in the UK with Strauss Turnbull before he returned to Malaysia in 1975 to join Bumiputra Merchant Bankers Berhad. But his ambitions went far beyond just working for a bank—he wanted to build one.
In 1983, he secured a broker’s license and founded Rashid Hussain Securities Sdn Bhd, a small brokerage firm that quickly made waves. By 1988, it became the first brokerage to list on Bursa Malaysia (then known as the Kuala Lumpur Stock Exchange) under the name Rashid Hussain Bhd (RHB).
At the time, it was the first brokerage in Malaysia to conduct in-house research on local companies, giving clients deeper insights into stock market trends. This forward-thinking approach set him apart from competitors and helped him grow the firm into a financial powerhouse.
But Rashid wasn’t satisfied with just playing the stock market. He had bigger plans.
The Birth of RHB Bank
In 1989, Rashid made his first move into banking by acquiring a 20% stake in Development & Commercial Bank (DCB). It was a bold step that laid the foundation for what would soon become one of Malaysia’s largest banks.
By 1996, he made another major move, acquiring a 75% stake in Kwong Yik Bank, Malaysia’s first local bank, which was founded in 1913. The purchase price was RM2.2 billion in cash, an amount that translated to 3.2 times its book value; one of the most expensive banking acquisitions in Malaysia at the time.
The following year, Kwong Yik Bank and DCB Bank merged, giving birth to RHB Bank Berhad. With this merger, RHB Bank became Malaysia’s third-largest financial institution.
That same year, Rashid tried to expand beyond Malaysia, acquiring a 20% stake in Indonesia’s PT Bank Niaga for RM247 million. He was building an empire, and it seemed like nothing could stop him.
Except, of course, for the 1997 Asian Financial Crisis.
Navigating the 1997 Asian Financial Crisis
Rashid had built RHB Bank through bold acquisitions and ambitious expansion. But when the Asian Financial Crisis hit in late 1997, those high-risk moves backfired. As markets crashed and liquidity dried up, RHB was heavily exposed to stock market losses and bad loans. Rashid tried to save the empire he had built, but the damage was too great.
In an effort to stabilize the group, RHB Capital acquired the troubled Sime Bank in 1999 for RM852 million. The deal was financed through the issuance of new shares and RM500 million in 10% subordinated bonds from Danamodal Nasional Bhd, under Bank Negara Malaysia. Despite the bold move, the financial strain persisted.
A string of acquisitions within a short period left RHB Group vulnerable, especially as the banking sector bore the brunt of the financial crisis. With significant exposure to the stock market, the group eventually changed hands, first to Utama Banking Group and later to the Employees Provident Fund (EPF). Following this, Abdul Rashid took a step back from the corporate world, with many speculating that his exit was influenced by political circumstances.
Life After RHB

After his exit, Rashid disappeared from the corporate world for nearly two decades. But in 2023, at age 76, he made a quiet comeback as the Chairman of Lembaga Tabung Haji (TH), Malaysia’s Islamic pilgrimage fund.
In recent years, the institution has faced financial restructuring and governance reforms. Rashid’s appointment signaled a step toward strengthening the fund’s financial sustainability and ensuring prudent fund management.
Now, with Rashid at the helm, the question remains, can the man who once built (and lost) Malaysia’s third-largest banking group turn TH into a stronger financial institution?
Love him or hate him, one thing is certain: Tan Sri Abdul Rashid Hussain is not done yet. And if history has taught us anything, it’s that when he makes a move, the financial world takes notice.
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