KUALA LUMPUR: There is a pressing need for Malaysia to attract high quality investments and become a key regional investment hub in efforts to spur the country’s economic recovery and reform initiatives amid the uncertainties led by Covid-19 pandemic, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He noted that the country would not be spared by uncertainties from the ongoing Covid-19 pandemic, prolonged supply bottlenecks and the Russia-Ukraine conflict.
“The risk of the Federal Reserves tightening, as well as China’s slowing economy, will weigh on the growth in emerging markets and developing economies.
“Hence, Malaysia is at a crossroads, with a pressing need to spur both recovery and reform,” Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said during the official opening of new HSBC Malaysia head office in the country’s international financial centre at Tun Razak Exchange (TRX).
Moreover, Tengku Zafrul noted that the government intends to also position the country as a hub for “global talent, a centre for the development of new and exciting technologies, and a focal point for the exchange of ideas and information.”
“With Malaysia’s excellent connectivity links and plans for more infrastructure and human capital investments in the coming years, the country is poised to be an ideal regional and international base for businesses,” he explained.
That said, Tengku Zafrul said Malaysia’s banking sector is well positioned to realise the nation’s aspirations as it undergoes transformation and significant change.
He added Malaysia, which is strategically located in the heart of South-East Asia, has one of the highest standards of living in the region.
“Malaysia’s diverse and developed financial sector would be critical in facilitating these developmental needs,” said Tengku Zafrul.
Moving forward, Tengku Zafrul pointed out that the government aims to continue significant progress that it made last year, citing that Malaysia’s economy grew by 3.1%, trade exceeded RM2 trillion, and net foreign direct investment amounting to nearly RM55bil in 2021.
In January 2022, the country’s total trade increased by nearly 25% to more than RM203bil with exports increasing by double digits for the sixth month in a row since August 2021.
Foreign investors purchased a net of RM3.5bil in Malaysia’s ringgit bond markets in January, while equity markets recorded a total foreign net inflow of RM3.6bil year-to-date.
On the opening of HSBC’s new head office, Tengku Zafrul said the government has applauded the bank as it has shown its commitment to advance Malaysia.
“Congratulations HSBC on your Menara IQ, which I was told is a world-class intelligent building with digital and eco-friendly features that also reflect Malaysia’s broader ambitions on those fronts.
“We certainly welcome HSBC’s commitment to assisting the country’s growth and transformation over the next century, and beyond,” he said.
HSBC has invested US$250mil (RM1.04bil) to open its new head office in the 33-storey Menara IQ within the TRX along Jalan Tun Razak.
HSBC owns the building and is the anchor tenant occupying 22 floors. The rest of the floors will be leased to companies supporting the TRX ecosystem such as fintechs, financial and professional services firms.
The bank’s new head office will provide a fit-for-purpose, modern working environment with superior digital capabilities, integrating the highest standards of environmental sustainability.
The new premises will allow its employees to embrace a new “Future of Work” model, which offers a shift towards a more hybrid and flexible style of working.
A total of 5,000 employees will be based in the bank’s new office.
Meanwhile, HSBC Bank Malaysia chief executive officer Stuart Milne said the opening of the new head office reinforces the bank’s commitment to grow its business in Malaysia, adding that it is a priority market for the HSBC group’s growth plans across the Asean region.
“The Asean region is an area that represents significant growth potential. The move of our head office to Menara IQ at TRX is a strong demonstration of our unwavering commitment to Malaysia and our customers here,” he added.
Source: https://www.thestar.com.my/business/business-news/2022/03/08/prompting-an-economic-recovery-and-reform