Business

Wednesday July 20, 2011

HSBC plans 6 more branches

By JOHN LOH
johnloh@thestar.com.my


It’s targeting to meet quota of outlets before year-end

KUALA LUMPUR: HSBC Malaysia is planning to open six more branches before the end of the year.

“These will primarily be HSBC Amanah Islamic banking facilities,” HSBC Bank Malaysia Bhd executive director and deputy chief executive officer Jon Addis told a press conference at the “Asean-China: Awakening of a New Economy” forum under HSBC's Activate Asia series.

The forum was jointly organised by the Asian Strategy and Leadership Institute and endorsed by the Chinese Embassy.

Addis said HSBC had not reached its quota of branches and would likely open six more branches.

HSBC Malaysia executive director and deputy CEO Jon Addis (right) and HSBC Singapore Asian Economist Wellian Wiranto at the Activate Asia "Asean-China: Awakening of a New Economy" forum. - Starpic by Norafifi Ehsan

He added that the new branches were, however, subject to Bank Negara's approval.

Bank Negara currently restricts the number of branches by licenced foreign lenders.

HSBC has 48 branches nationwide, of which 40 are conventional branches and eight are Islamic branches.

On news that the central bank may allow more South-East Asian banks to open in Malaysia as it liberalises the finance industry, Addis said the Malaysian banking sector was robust and had enough capacity for more competition.

“We welcome the increased liberalisation,” he said.

In his opening speech at the conference, Addis told the audience that Malaysian businesses could benefit from the opportunities in the China-Asean Free Trade Agreement.

“According to the Asean Secretariat, the gradual adoption of the Free Trade Agreement has today created an economic region with 1.9 billion consumers, a regional gross domestic value of US$6.6 trillion with total trade estimated at US$4.3 trillion.

“The gradual reduction of trade and investment barriers will result in an enlarged integrated market, promote specialisation and trade according to comparative advantage, and enable exploitation of scale economies, contributing to lower costs and increased economic efficiency,” he said.

The “Asean-China: Awakening of a New Economy” forum was organised to provide businesses with the insight and knowledge to tap the Asean-China economic region.

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