HSBC Malaysia has 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.
In a statement on Tuesday, the bank announced the fund 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”.
HSBC said the fund will primarily support lending to technology-led businesses and emerging start-ups from the Series B stage and beyond which are tapping opportunities within Malaysia’s growing digital economy.
HSBC said it will 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 high-performing 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 (RM9.35 billion) globally into commercial banking to improve our digital capabilities, and to develop more solutions to support our clients,” he said.
Omar Siddiq said the bank expects 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 the first of its kind in Malaysia, is focused on providing high-growth, innovative companies with access to funding solutions, so that they can continue the next stage of their growth”,” he said.
Meanwhile, HSBC Malaysia head of commercial banking Karel Doshi said a key ingredient for tech-led businesses and emerging Malaysian start-ups 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,” she said.
Source: The Edge Malaysia