Official Opening of New HSBC Malaysia Head Office

SPEECH TEXT

YB SENATOR TENGKU DATUK SERI UTAMA ZAFRUL AZIZ MINISTER OF FINANCE

OFFICIAL OPENING OF NEW HSBC MALAYSIA HEAD OFFICE

7 MARCH 2022 | 10.00 AM | MENARA IQ, TRX

SALUTATIONS

Bismillahirrahmanirrahim

Yang Berhagia Tan Sri Dato’ Krishnan Tan Boon Seng
Chairman of HSBC Bank Malaysia

Mr. Stuart Milne
Chief Executive Officer of HSBC Bank Malaysia

Yang Berbahagia Dato' Seri Asri bin Hamidin
Secretary General of the Treasury

Members of the media Ladies and Gentlemen

Assalamualaikum Warahmatullahi Wabarakatuh and a very good morning.

1. It gives me great pleasure to be here today for the official opening of HSBC Malaysia’s new head office, Menara IQ, in the country’s first international financial centre, the Tun Razak Exchange.
   
   
2. Today’s event represents a significant commitment by a leading international financial institution to further expand its operations in Malaysia while better serving the needs of both domestic and international clients. And, there is no better time than now for other investors to follow suit, as the Malaysian economy starts to show a solid recovery.

Ladies and gentlemen,

3. Following a 5.5 per cent rebound in 2021, the path to global recovery continues. Many advanced and middle-income economies now have substantial vaccination rates. International trade has grown.
   
   
4. Similarly, Malaysia has made significant progress in 2021, with the economy growing by 3.1 percent, trade exceeding 2 trillion ringgit, and net FDI amounting to nearly 55 billion ringgit.
   
   
5. And, we continue to build on that momentum. In January 2022, our total trade increased by nearly 25 percent to more than 203 billion ringgit, with exports increasing by double digits for the sixth month in a row since August 2021. Foreign investors purchased a net of 3.5 billion ringgit in our ringgit bond markets in January, while equity markets recorded a total foreign net inflow of 3.6 billion ringgit year- to-date.
   
   
6. The road ahead, however, is not without risk. Uncertainties persist as a result of the on-going COVID-19 resurgence, prolonged supply bottlenecks, and the Russia-Ukraine conflict. The risk of the Federal Reserve tightening, as well as China’s slowing economy, will weigh on growth in emerging markets and developing economies.
   
   
7. Hence, Malaysia is at a crossroads, with a pressing need to spur both recovery and reform.
   
   
8. Of course, attracting high quality investments and elevating Malaysia’s position as a key regional investment hub will be critical to both our recovery and reform initiatives.

Ladies and gentlemen,

9. Strategically located in the heart of South-east Asia, Malaysia has one of the highest standards of living in the region. With its excellent connectivity links and plans for more infrastructure and human capital investments in the coming years, the country is poised to be an ideal regional and international base for businesses.
   
   
10. We intend to realise this potential by positioning ourselves as a hub for global talent, a centre for the development of new and exciting technologies, and a focal point for the exchange of ideas and information.
    
    
11. Tothatend,Malaysia’sdiverseanddevelopedfinancialsectorwillbe critical in facilitating these developmental needs. Malaysia’s banking sector - one of the most robust in Asia - is well positioned to realise the nation’s aspirations, especially as it, too, is undergoing transformation and significant change.
    
    
12. Indeed, at the heart of all these is our recently launched Financial Sector Blueprint, for the period 2022 to 2026. This blueprint details strategies that will be critical for the financial sector to navigate upcoming challenges and opportunities, and a key enabler for the economic goals outlined under the Twelfth Malaysia Plan. Ultimately, the blueprint will realise Malaysia’s goal of a more “Prosperous, Inclusive and Sustainable Malaysia”.
    
    
13. To that end, we truly appreciate long-standing investors in Malaysia such as HSBC who have played a critical role in the country in the last 130 years, and now, to help facilitate Malaysia's economic recovery, growth and transformation. Thank you, as we need nothing short of a whole-of-nation approach to continue building on Malaysia's existing strengths and complementing the region’s other economic and financial centres.

Ladies and gentlemen,

14. 130 years is a long time. It is thrilling to know that for more than a century, HSBC has stood shoulder-to-shoulder with Malaysia and its people, playing a critical role in our development.
    
    
15. This commitment includes participation invarious national initiatives, including:
    
    
    1. The issuance of the world’s first sovereign US Dollar Sustainability Sukuk by the Government of Malaysia;
    2. The facilitation of JanaNiaga and SemarakNiaga to improve business liquidity and access to financing; and
    3. National efforts led by Bank Negara Malaysia to align sustainable banking principles with Shariah through the Value- based Intermediation (VBI) Community of Practitioners.
       
       
16. The opening of HSBC’s new head office today demonstrates its commitment to advancing Malaysia, which the Government applauds. Congratulations HSBC, on your Menara IQ, which I was told is a world-class intelligent building with digital and eco-friendly features that also reflect Malaysia’s broader ambitions on those fronts. And, echoing Stuart’s words, we certainly welcome HSBC’s commitment to assisting the country’s growth and transformation over the next century, and beyond.
    
    
17. Before I conclude, I would like to thank and congratulate the Board of HSBC Malaysia and its management team, for making this possible.
    
    
18. On that note, it gives megreat pleasure and honour to officially launch HSBC Malaysia’s new head office, Menara IQ, at the Tun Razak Exchange.

Wabillahi Taufik Wal Hidayah, Wassalamualaikum Warahmatullahi Wabarakatuh.