Malaysia's Banking Sector To See Business Slowdown In 12-24 Months, Says HSBC

KUALA LUMPUR, Feb 28 (Bernama) -- The banking sector in Malaysia will see a slowdown in business activity in the next 12 to 24 months, due to the slowdown in Gross Domestic Product (GDP). HSBC Bank Malaysia Chief Executive Officer Mukhtar Hussain said the economic condition was now more subdued compared to previous years and this had impacted capital investment. "However, the banking system, which is prudent, well regulated, capitalised and backed by strong corporate governance, will help institutions to manage well during these times," he told a press conference here Monday. He said the banking system would improve, moving along with the economic trend and backed by initiatives to support the industry. Despite the slowdown in economic growth, Mukhtar said there were opportunities available for trade and investment in the Chinese renminbi (RMB). "We are optimistic of growth and opportunities available with the 'Belt and Road Initiative' (BRI), which is an ambitious strategy to spur trade, capital and services between China and the rest of the world," he said. Mukhtar said Malaysia stood to benefit from the strong bilateral relations established with China. HSBC Head of Commercial Banking Andrew Sill said opportunities made available with the BRI would be enormous, particularly in the manufacturing industry as Chinese companies moved their production hubs to other markets outside of China. "HSBC will continue to support corporations taking advantage of the RMB, being the third most used currency in terms of trade and sixth most used currency in terms of payments," Sill said. Head of Global Markets Alvin Kong said the RMB was gaining acceptance, with more companies looking to expand into China. "China has introduced measures to provide stability to its currency, as well as, to internationalise the currency," Kong said. --BERNAMA