OCBC Bank Malaysia, the local arm of Singapore's Oversea-Chinese Banking Corp, is set to launch a new credit-linked structured investment product to cater to the growing demand for alternative investments.

CLSI products are fast becoming an alternative to equity-linked investments, as they provide fixed returns by paying out regular interest, except in the case of a so-called credit event with respect to a reference entity, such as a bankruptcy, restructuring or failure to pay, said the bank in a statement. 

The company currently has five existing CLSI products, with reference entities including Standard Chartered Bank, Bank of China and Australia and New Zealand Banking Corp. 

"With a fixed interest rate of 4.5 to 5.5 per cent per year for five years and no currency risk, as the underlying currency is based in ringgit, this is certainly viable for customers moving into 2012," said Ong Shi Jie, head of wealth management for OCBC Bank Malaysia. 

OCBC Bank has been operating in Malaysia for over 70 years and to-date has a network of 31 branches and 3,500 staff. The Singapore-headquartered firm's other Asian branches are in Malaysia, Indonesia and Greater China.