HSBC: New policies, institutional reforms needed to catalyze Malaysia’s economic growth | Money

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The CEO of HSBC Malaysia said that the future of the bank itself rests on digital activation. – Reuters photo

KUALA LUMPUR, October 20 – As Malaysia emerges from the aftermath of the Covid-19 pandemic, a different set of policies as well as institutional reforms will be needed to improve economic growth in the future, HSBC Bank Malaysia Bhd said.

Managing Director Stuart Milne said Malaysia is a trade dependent economy and is at its best when open, so the government needs to create favorable conditions for trade and investment.

“For the next budget, we would like to see the government optimize the development budget to build the ecosystem and administration essential to attract more foreign direct investment (FDI) in privileged sectors such as infrastructure and technology.

“It is important to note that this will be essential for the creation of jobs in the country, the development of the talent pool of the country and the growth of Malaysia as a regional hub for investments in specialized fields”, a- he told Bernama.

He noted that banks such as HSBC are uniquely positioned to partner with customers as they seek to establish and grow their presence in both Malaysia and Malaysia and to help create trade flows and d stronger and more connected investment.

“This will be crucial for the development of the banking sector and will fuel the economic recovery as a whole,” he explained.

Milne said the bank also hopes the government will continue to prioritize digitization and take a low-carbon approach in the 2022 budget that will be tabled on October 29.

The digital switch-over and the transition to reduced carbon emissions are both essential to strengthen overall economic resilience, he said, adding that measures that encourage individuals and businesses, especially small and medium-sized companies (SMEs), to improve their adoption of technology will be extremely beneficial.

“This can be achieved by allocating funds to create stronger sector ecosystems, elevate an industry’s digital standards and practices, and improve the way industries respond and adapt to changing payments systems.

. The accelerated digital switchover will inspire the banking industry to create new digital products and introduce digital capabilities that will improve financial inclusion, ”he said.

In the area of ​​sustainability or environmental, social and corporate governance (ESG), he said that creating the right policy environment and introducing incentives can galvanize the private sector to reduce the footprint. carbon.

This can be achieved in many ways, including offering tax breaks or stamp duty reductions for companies making progress in reducing their carbon footprint or introducing carbon credits that companies can buy and sell. in order to offset their emissions, he explained.

In addition, Milne said that allocating funds to accelerate the adoption of renewable energy, both among businesses and consumers, could also help the country achieve its climate ambition.

“By being at the center of financing, the increased focus on sustainability offers banks the opportunity to support domestic clients on their ESG journey. This includes helping high impact ESG sectors to be more sustainable, ”he said.

In helping SMEs get back to work, he said the government must continue to provide assistance to support the recovery of this economic foundation.

“Some industries may find recovery more difficult than others and a specific and focused approach may also be selectively required.

“Banks have a key role to play as a working capital support channel for SMEs, backed by a 100 percent government guarantee. This will be essential to get SMEs back on their feet after the pandemic, ”he added. – Bernama


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