KUALA LUMPUR: HSBC Bank Malaysia Bhd expects to see more partnerships between Malaysian and Chinese firms, on the back of the ongoing United States-China trade tension.
In a press briefing today, its chief executive officer and group general manager Stuart Milne said that these potential partnerships make sense as these two countries had an existing harmonious relationship.
“We do expect more incoming foreign direct investments (FDI) from China into Malaysia as well as the rest of Asean within the short term. We also expect that more Chinese firms will want to partner with Malaysian firms, especially within the electronics and electrical (E&E) side,” he said.
“This interest might also increase on whether or not the US would increase tariffs onto China’s imports.”
According to data provided by Malaysian Investment Development Authority, a total of RM15.6 billion of China projects here in Malaysia had been approved as of September 2018.
Areas of investment are expected to be E&E manufacturing, the services industry and machinery and equipment.
Asked if HSBC would facilitate the potential investments flows, Milne said the bank was keen and looking out for opportunities.
Meanwhile, HSBC managing director of Infrastructure and Real Estate Group (Global Banking Asia Pacific) Jonathan Drew said the bank expected massive opportunities in sustainable financing in Asean.
“Malaysia has led the way in sustainable financing in this region by leveraging its Islamic finance capabilities. Going forward, we do expect to leverage on our Islamic arm, HSBC Amanah to push forward the sustainability reach within this region,” he said.
HSBC is projecting a gross domestic growth of 4.5 per cent this year, versus 4.7 per cent last year.
It also sees the ringgit to end the year at RM4.30 to the dollar by year end and for Brent crude oil to float between the range of US$60 to US$65 per barrel.