HSBC is planning to set up an asset management business in Malaysia and has applied for a licence from the country's securities regulator, according to local English language business weekly The Edge.
This would make Malaysia the second Southeast Asian country after Singapore to house the bank's asset management operations under HSBC Global Asset Management.
HSBC is now building up a core asset management team in Malaysia as required by Securities Commission Malaysia (SC), The Edge says, citing an unnamed source.
"It is in the midst of setting up its team, looking to hire a chief executive officer, chief investment officer and so on. The process is such that you need to have a basic set-up and concurrently apply for a licence from the Securities Commission Malaysia," a source told the news outlet.
Figures from the SC show that the industry's assets grew at a compound annual growth rate of 12.8% between 2008 and 2018, roughly half the 23.5% rate over the previous eight years.
The industry's assets declined 4.2% to 743.6 billion ringgit (US$177.70 billion) last year from 776.2 billion ringgit in 2017.