HSBC launches funds dedicated to spur innovative economy in Malaysia
HSBC Malaysia launched a RM500 million ‘HSBC New Economy Fund’ dedicated to providing high-growth, new economy businesses across Malaysia access to funding solutions to enable them to innovate and scale.
The fund was announced at the bank’s second event focused on developing the start-up ecosystem in Malaysia titled, ‘Accelerating sustainability through the Digital Economy – shaping a long-term future’.
According to its press statement, the fund will primarily support lending to tech-led businesses and emerging start-ups from Series B stage and beyond who are tapping opportunities within Malaysia’s growing digital economy.
HSBC will also continue to offer working capital, treasury management and payments and cash management solutions to meet the needs of these businesses at different stages of their lifecycle.
HSBC Malaysia chief executive officer Datuk Omar Siddiq said, “Malaysia is putting itself at the forefront of Asean’s thriving start-up ecosystem with an emphasis on developing the country as a hub for highperforming businesses in the region.
“We are positive on the new economy in South and Southeast Asia and as a Group we are doubling down on our support for new economy players.
“We have invested US$2 billion globally into Commercial Banking to improve our digital capabilities and to develop more solutions to support our clients.
“We fully expect new economy businesses to play a more significant role in driving
Malaysia’s economic growth and prosperity over the coming years. The ‘HSBC New Economy Fund’, which is a first of its kind in Malaysia, is focused on providing these high-growth, innovative companies with access to funding solutions so that they can continue the next stage of their growth.”
The development of Malaysia’s start-up ecosystem is one of the country’s long-term objectives.
The various government initiatives laid out as part of the Madani Framework, the New Industrial Master Plan 2030 and the Malaysia Start-up Ecosystem Roadmap (SUPER) 2021-2030, are a testament to the commitment to bolster the development of start-ups in the country and places an emphasis on making Malaysia a digitally vibrant nation.
This includes providing enhanced funding, digitalisation grants and capacity building programmes that will be crucial to elevating the position of Malaysian startups on the global stage.
HSBC Malaysia head of Commercial Banking Karel Doshi added, “A key ingredient for tech led businesses and emerging Malaysian startups to scale is the investment to grow. Beyond the incentives provided by the government, for start-ups to expand and succeed it is crucial to connect them to other parts of the world as well as bring other parts of the world to them – we know Asia very well and have been here for over 150 years.”
Karel added, “We are also consistently looking for ways to collaborate with government agencies and ecosystem players to support Malaysia’s new economy ecosystem.”