HSBC intends to raise headcount in business banking in Singapore so as to capitalize on growth opportunities in the Southeast Asia region.
HSBC, which has been present in Singapore since 1877, said it intends to increase its share in its target small-medium-enterprise (SME) market from the current 10 percent to 15 percent by 2021. HSBC classifies SME clients as those with a turnover of $5-$100 million.
«At a high level, we see Singapore as a de facto financial capital for Southeast Asia (ASEAN), as well as an attractive destination for our customers around the world,» said Alex Turner, managing director and head of commercial banking in HSBC, who was quoted in the «Business Times» (behind paywall).
Looking For Growth In SME Lending
To support the growth in SME lending, the bank increased its headcount in business banking by 30 last year. As the SME lending space is highly competitive, HSBC country head of business banking Ng Li Lian said that the bank will tap on its advantages, such as having a dedicated relationship manager for each SME client.
It also launched the Pioneer program in August last year to target fast-growing SMEs with minimum topline growth of 15 percent, especially those who wish to internationalize. Besides access to skills and capabilities, this 12-month program lets SME leaders have conversations with different teams within HSBC, such as speaking with its alternative finance team on how to raise capital other than through debt.
ASEAN Needs Stronger Sales Pitch
For ASEAN to benefit from a wide-scale migration of supply chains into the region, the countries need to first improve on technology, capacity, and regional integration said HSBC Singapore CEO Tony Cripps.
«There has been a widespread sentiment that the supply chains of businesses are starting to shift to Southeast Asia (SEA) en masse, on the back of the trade war and the region's vitality, but there has been little evidence of that happening,» wrote Cripps in a report.
«ASEAN needs to build more visibility and credibility amongst international firms, particularly in their ability to handle and deliver production orders», he added.
