KUALA LUMPUR: HSBC has launched a US$1 billion ASEAN Growth Fund aimed at propelling the growth of platform players in the rapidly advancing digital economies of six key nations in the region.
These countries include Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, where HSBC maintains a strong presence.
Datuk Omar Siddiq, chief executive officer of HSBC Malaysia, expressed the bank's excitement for the growing digital landscape in ASEAN, aligning with the vision of numerous globally oriented businesses.
With Southeast Asia's digital economy projected to surge from US$218 billion in 2023 to US$600 billion by 2030, at a compounded annual rate of 16 per cent, HSBC's fund is poised to significantly influence this growth trajectory.
HSBC intends to allocate US$1 billion in credit facilities through a dedicated lending fund to help the region's digital platform players achieve economies of scale, grow their asset portfolios, and advance along the corporate lifecycle.
Furthermore, it aims to support new economy names, established corporates, and non-bank financial institutions, by assessing operating metrics linked to their cashflow-generative asset portfolio, rather than relying solely on conventional financial metrics.
"With a working population that is digitally native, increasing in size, and poised to consume more goods and services – especially on e-commerce – Asean has so much potential for growth.
"We are delighted to work with digital companies as they expand in the region and beyond," he said in a statement.
Meanwhile, Karel Doshi, head of commercial banking at HSBC Malaysia, announced the findings of a recent survey conducted among 600 companies operating in Southeast Asia.
According to Doshi, the survey revealed that "digitalising operations" is a key business priority, selected by 55 per cent of Malaysian respondents.
He said that other priorities included 'growth in ASEAN' (59 per cent) and 'product development or research and development' (33 per cent).
"To help capture growth in the booming digital economy, almost three quarters of the respondents (73 per cent) said that 'digitisation of operations' is becoming more important compared to 2023.
"More importantly, we also see 82 per cent of the respondents planning to increase their investment in the digitalisation of their businesses in Asean," he added.
Doshi also noted that rapid digital adoption in Asean means businesses increasingly and understandably need fuss-free digital banking to support their growth.
"They want convenient and simple-to-use trade and payment solutions that would free up more time for them to focus on strategy and expansion," he said.
