By Digital News Asia July 24, 2020
- MoU to accelerate tech adoption among SMEs, large local corporates, MNCs
- Also target investments from overseas, to thrust M’sia as digital powerhouse
HSBC Malaysia and the Malaysia Digital Economy Corporation (MDEC) have signed a memorandum of understanding (MoU) focused on enhancing the adoption of technology among small-and-medium-enterprises (SMEs), large local corporates and multinational companies in the country. The signing marks the first MoU between both organisations and highlights the critical role of public-private partnerships in mitigating the adverse effects of Covid-19 on businesses by encouraging them to embrace digitalisation.
Under the terms of the MoU, HSBC Malaysia will work jointly with MDEC to educate companies to leverage technology to strengthen their businesses and facilitate greater convenience in their day-to-day transactions. To achieve this, HSBC Malaysia and MDEC will collaborate on tailored marketing efforts and knowledge sharing initiatives. This will include the promotion and execution of events such as seminars, conferences and webinars.
Stuart Milne, CEO, HSBC Malaysia said, “Covid-19 has intensified the need for businesses of all sizes to incorporate innovative digital solutions and strategies into their daily operations. HSBC’s partnership with MDEC will have far-reaching benefits for SMEs, large local corporates and multinational companies in the country as it will help to create opportunities in times of adversity through the effective adoption of technology. Built on our shared commitment to enable the economy’s digital transformation, together with MDEC, we aim to amplify the integration of technology and fuel business growth in Malaysia”.
Facilitating this corporate partnership is MDEC’s Global Growth Acceleration division, which has mobilised 571 homegrown tech companies to assist 42 corporations with their digitalisation endeavours since January this year. The technology solutions deployed range from fraud detection to automation of data entry and installation of sensors on machines to optimise plant operations.
MDEC CEO Surina Shukri lauded HSBC’s proactive stance in supporting organisations to take the digital leap. She further encouraged Malaysia-based MNCs to join the effort to build the nation’s digital ecosystem and support local digitally-empowered businesses to grow globally.
“Corporations like HSBC possess market knowledge, resources and established networks that companies aspire to attain, while the tech companies possess the agility and novel ideas that corporations value. MDEC aims to harness these complementary strengths, which will not only advance the nation’s digital agenda but potentially lead to the creation of deep-tech solutions in our backyard that could shape the way we solve the most pressing global issues. We look forward to fostering more corporate partnerships as this will also serve to augment Malaysia’s pursuit to be the Heart of Digital ASEAN,” said Surina.
As part of the collaboration, HSBC and MDEC will work together to identify targeted investments spanning businesses across multiple sectors including technology, healthcare, electronics, manufacturing, education and more from a host of countries including but not limited to China, the USA, the UK and Japan. The initiative will be pivotal to thrusting Malaysia forward as a major global digital powerhouse. The agreement also includes, where relevant and necessary, providing advisory and other banking services to SMEs, large local corporates and multinational companies that are looking at entering the market or expanding their business in the country.
“With more than 130 years of history in Malaysia and an unrivalled global presence, HSBC is uniquely positioned to partner with clients as they look to establish and grow their presence both within and beyond the country. The MoU with MDEC reinforces our unwavering focus on helping businesses capitalise on opportunities and thrive in a fast-changing world”, Milne added.
In tandem with the partnership with MDEC, last month, HSBC Malaysia organised a focus group to discuss how government institutions and corporates can encourage the development of sustainable data centres to spur economic growth through the establishment of a public-private partnership. A virtual roundtable was also organised earlier this month by HSBC in collaboration with MDEC to highlight how Malaysian corporates can benefit from digital opportunities and capitalise on technology to become more resilient and thrive through this season of change. The panel for the virtual roundtable consisted of industry figures from HELP University, DPO International, Taylor’s School, EcoWorld, iPay88 and RISE (MDEC’s innovation partner).
HSBC Malaysia has strengthened its digital banking capabilities presenting enhanced innovation in banking services. The bank’s omni channel capability for example is a one-stop solution that allows clients to provide multiple payment options to their customers and gives them a comprehensive view of their payment collections across different channels including bank transfers, credit and debit card payments and e-wallet transactions. The offering has been designed to simplify and streamline the way businesses collect payments. Last year, HSBC Malaysia also executed the country’s first-ever live pilot blockchain Letter-of-Credit transaction. This followed the launch of the HSBCnet Trade Transaction Tracker, a service that helps businesses to track the real-time status of trade transactions more quickly and to help them better manage their global trade flows.