Malaysian SMEs urged to embrace digital tech and modern finance

Small-and-medium enterprises (SMEs in Malaysia) are accelerating the integration of technology into business, enabling them to build resilience as well as presenting new opportunities for growth. And while technology continues to play a critical role in advancing the start of economic recovery as we shift into the endemic phase, SMEs will now also need to explore growth prospects beyond Malaysia.

There is renewed optimism for the next 12 months and an expectation to return to pre-Covid profitability as early as this year. This was one of the findings of the “HSBC’s Navigator: Voice of Business 2021 report”, which polled over 7,350 decision-makers from 14 global markets, including – Malaysia. Almost half (46%) of Malaysian businesses surveyed said they are investing in digital tools to protect against future threats.

Digital transformation the way forward for SMEs

The future of banking is all about digital enablement and HSBC Bank Malaysia (HSBC) is helping SMEs to strategically invest and embrace digitisation and technology innovation in their operations to ensure they remain competitive and relevant, enabling them to grow internationally.

“We are living in one of the most exciting times as we see technology transform lives and industries, while driving disruption and simultaneously creating new opportunities.,” said HSBC Malaysia’s Country Head of Commercial Banking Andrew Sill says.

“At HSBC we are committed to building a suite of solutions and products to help businesses looking to grow internationally by improving and easing how they conduct business globally. We have been continuously supporting businesses to sustain their business and even to grow, despite lockdowns and travel restrictions,” says Sill.

Sill shares that 100% of SMEs new to the bank are supported by digital solutions while the proportion of existing customers supported by digital solutions is now at 92% compared with 78% pre-Covid.

Simplifying international payments via a multi-currency digital wallet

As international borders open up and global trade rebounds, stronger participation in global markets by Malaysian SMEs will bring new opportunities for international expansion and growth. The rapid digitalisation of financial services and the growth of ecommerce has also enabled SMEs to reach a wider base. However, making international payments can be complex for SMEs, weighing on cost and precious resources.

To enable SMEs to scale their business internationally, HSBC has launched HSBC Global Wallet, Malaysia’s first multi-currency digital wallet. HSBC Global Wallet will allow SMEs to hold, manage, send and receive payments from multiple currencies, quickly, simply and securely from one single global account.

“HSBC Global Wallet is fully integrated within HSBC’s existing business banking platform, HSBCnet, and by using the bank’s global payments network, allows SMEs to ‘pay and receive like a local’. It significantly reduces the time in which money can be delivered to an overseas beneficiary and removes the need for businesses to use third-party providers for international transactions. SMEs can send and receive money in up to 10 currencies, and hold and manage those currencies by establishing a single banking relationship with HSBC Malaysia,” said Shayan Hazir, Country Head of Global Liquidity and Cash Management, HSBC Malaysia.

Key benefits of HSBC’s Global Wallet:

• Single Secure Platform - Fully integrated within HSBC’s existing business banking platform, HSBCnet; businesses need not use third-party providers for international transactions. Clients can send and receive money in a number of currencies, and hold and manage those currencies in the same Global Wallet account.

• Pay and Receive Like a Local - With minimal correspondence fees, SMEs can better manage their cost of international payments. These payments are delivered to overseas beneficiaries within the same day or next banking day. Their buyers can also pay via their own domestic payment networks, giving SMEs a faster and more efficient way to receive payments.

• Simplicity - HSBC Global Wallet enables SMEs to quickly and securely transact with their suppliers and clients around the world. By establishing a single banking relationship with HSBC Malaysia, SMEs need not open numerous accounts in other markets that they are venturing into. A single view with HSBC Global Wallet enables better control over all payment flows, which is critical for efficient cash flow forecasting.

• Personalised FX Rates - Converting from one currency to another can be a costly affair. With HSBC Global Wallet, SMEs will get access to personalized FX rates digitally without having to call and engage with someone from the bank. This will allow them to have better control over their costs and FX exposures.

As the trusted international bank of choice for SMEs, the launch of HSBC Global Wallet cements HSBC’s commitment to scaling up its SME banking capabilities in Malaysia and supporting SMEs as they expand internationally. Drawing on HSBC’s deep digital expertise and wide global network, HSBC is helping SMEs to build resilience and trust within their global supply chains whilst making everyday banking easier.

Continued support for SMEs

HSBC Global Wallet is a further step in the Bank’s strategy to grow its SME business in Malaysia and will be launching a suite of solutions for SMEs that go ‘beyond banking’, complementing the existing innovative digital and analytical solutions products.

Beyond the innovative tools and solutions offered, HSBC Malaysia has also entered into a MoU with Malaysia Digital Economy Corporation (MDEC) – the first-of-its-kind MOU focused on enhancing the adoption of technology among SMEs and corporates in Malaysia.

To start your journey with HSBC Global Wallet, find out more here: https://www.business.hsbc.com.my/en-gb/campaigns/hsbc-global-wallet