HSBC is reportedly setting up an asset management business in Malaysia in the midst of a major job-axing exercise.
«It is in the midst of setting up its team, looking to hire a CEO, CIO, and so on,» according to a report from Malaysian media «The Edge», citing an anonymous source.
«The process is such that you need to have a basic set-up and concurrently apply for a license [from the Securities Commission Malaysia].»
A Malaysia-based spokesperson for HSBC declined to comment, according to the report.
Plateauing Market
Assets under management (AUM) in Malaysia’s asset management market posted single-digit growth in four out of the last five years, according to a report by Nomura Institute of Capital Markets Research, with a contraction in 2018. This is a stark contrast with the 23.5 percent CAGR (compound annual growth rate) from 1999 to 2007. As of 2018-end, the industry’s AUM totaled around 744 billion Malaysian ringgits ($178 billion).
Concurrently, Bank of Singapore agreed to acquire local asset manager Pacific Mutual Fund for $8.5 million in June, pending regulatory approval. Synergies from the acquisition are expected to result in more than just expanded distribution.
