In 1994, HSBC Bank Malaysia was incorporated in Malaysia to enhance the banking infrastructure. The bank is known to be the subsidiary of HSBC group and holds absolute privileges for its operations monitored from its London headquarters. The HSBC group is currently serving global customers, with thousands of employees, 8,000 offices located in 87 major countries with conditional obligations. The effective countries cover mostly the continents of Asia-Pacific region, United States of America, Africa, Europe and the Middle East.
After its successful launch in Malaysia, HSBC Bank also has the privilege to receive ‘largest international-owned bank in Malaysia’ title. It offers a satisfying range of commercial and personal services through various mediums such as regional or area branches. Subsequently, the bank has 40 operational networks of branches in Malaysia.
The majority of the population in Malaysia is Muslim. Therefore, since 1994 HSBC has also been involved in introducing good Islamic financial services. In addition, the bank had inaugurated its first Islamic subsidiary under the name of HSBC Amanah Malaysia Berhad.
Considering the hype that was created since HSBC came into being, HSBC Bank was founded in 1865 in Hong Kong and Shanghai. Later in 1884 in Penang, Malaysia, the banking corporation of Shanghai and Hong Kong established its very first office to expand its productivity. Various branches in different years were opened which includes Ipoh branch opened in 1909, Kuala Lumpur, Malacca, and Johore Bahru branch opened in 1910, Kota Bharu branch successfully opened in 1912. After the success of aforementioned branches, HSBC launched nationwide expansion in Malaysian states in 1920s-30s. More branches were opened such as Sungai Petani branch in 1922, the Kuantan branch in 1929, the Muar branch in 1930 and the Kuala Terengganu branch opened in 1936.
In 1947, around British North Borneo (now known as Sabah), HSBC opened its first branch in Kota Kinabalu (also recognized as Jesselton). This led to a series of branches that were opened right after it including but not limited to, Tawau branch, Sandakan branch, and Labuan branch in 1957.
In the meantime, several other branches were opened at the same time in Kuching around 1958, which in time was followed by Sibu branch opened in 1959. Due to massive financial benefit for residents, HSBC opened the second branch in Kuching in 1964 to improve the productivity in the state.
In the Asia-Pacific region, the first key acquisitions of the banks started to spread. Therefore, the Shanghai and Hong Kong Banking Corporation took full advantage of the opportunity and acquired the rights of numerous banks including The Mercantile bank in 1959. A total of 40 branches were brought together as a network throughout Malaysia. After the affiliation of the Mercantile Bank which was found in 1860 in Malaysia, HSBC then became the oldest bank in Malaysia.
Even today HSBC Bank Malaysia Berhad operates with its strengthened network of 40 branches.
After the successful regime, Hong Kong Bank Malaysia Berhad was also induced in HSBC on October 1st, 1984. The local banks were left with very few absolute privileges, therefore, on January 1st, 1994; all the operational branches of Hong Kong and Shanghai Banking Corporation in Malaysia were localized and reassigned to the Hong Kong Bank of Malaysia. Since the Hong Kong and Shanghai Banking corporations were running out of options, therefore, selling its Malaysian banking business rights to subsidiaries of HSBC was the best and most beneficial option they had at that time. However, the corporation managed to secure one banking unit located offshore in Labuan, it is still operational. In 1999, as part of the worldwide re-branding exercise carried all over the globe, HSBC adopted the legal name HSBC Bank Malaysia Berhad for its Malaysian banking business permanently on 23rd of February. HSBC Bank Malaysia Berhad is a significant subsidiary of HSBC Group, the head of the entire Group is HSBC Holdings PLC located in London.
HSBC Group was also contributing to the deforestation program in Indonesia. The company has offered funding to cater the following perilous effects caused by deforestation. The funding was directed towards one of the best companies responsible for carrying out operations in Indonesia’s peat land forests. However, the entitled company was also found guilty and proven to have been involved in the act of environmental damage for financial benefit. Within a year, the company has faced intensive outrage from public and authorities. However, HSBC has declined every proposal to accept charges of assistance to any such acts and released a statement that these allegations are null and void as HSBC does not indulge in negligent events. Greenpeace committee, however, has gathered multiple links, reports, and sources between HSBC and its customers.