KUALA LUMPUR: HSBC has earmarked US$1 billion in funds under its Asean Growth Fund to support companies in six Asean countries scale up through digital platforms across Southeast Asia.
The launch of the fund comes one month after a HSBC survey of Malaysian companies found that "digitalising operations" is a key business priority of 55 per cent of Malaysian respondents.
Other priorities include "growth in Asean (59 per cent) and "product development / research and development" (33 per cent).
100 key decision-makers from Malaysian companies with annual turnover of at least US$50 million participated in HSBC's online survey of 600 in six Asean countries from Feb 14 to Feb 27, 2024.
The bank in a statement said it is allocating US$1 billion of 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.
It also supports new economy names, more established corporates, and non-bank financial institutions by assessing operating metrics tied to their cashflow-generative asset portfolio, rather than relying solely on traditional 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," HSBC Malaysia chief executive officer Datuk Omar Siddiq said.