HSBC Global Private Banking is leveraging its international connectivity and investment expertise to meet the increasingly sophisticated and international needs of its high net worth clients in Thailand.
Given the Western economic slowdown, Asia and Asean offer high-growth potential and opportunities for businesses to expand in the region, according to the company.
Foreign direct investment (FDI) has been growing in various countries and industries in the region, said Surendra Rosha, group executive and co-chief executive of HSBC Asia-Pacific, in an exclusive interview with the Bangkok Post.
Asean, the world’s fastest-growing trade bloc, has continued to attract substantial FDI despite rising volatility in capital flows worldwide, establishing itself as the No.4 investment destination globally, according to HSBC.
"I believe Thailand is a good place for foreign investors, while the execution of the new government's policies will be a priority for foreign investors." — Giorgio Gamba, Chief executive, HSBC Thailand
The bank’s large corporate customers have expanded businesses and investments in regional markets in several industries, particularly manufacturing, energy, automobiles, e-commerce, innovation and fintech.
Mr Rosha said electric vehicles (EVs) is a key sector attracting FDI to Thailand, Vietnam and Indonesia. In addition to using the countries as production bases, the FDI also covers EV-related industries such as batteries and charging stations.
For Thailand, large economies of scale in the automotive industry and the shift from combustion engine vehicles to EVs are the country’s key advantages for the business segment, he said.
Asean-based and large Thai corporations also have greater opportunities for outbound investment, both regionally and internationally, said Mr Rosha.
As a leading international bank in Thailand with global connections, HSBC is ready to support local customers investing abroad, he said.
Those connections are the bank’s key strategy to support corporate clients investing and expanding globally, said Mr Rosha.
The strategy should also facilitate the bank’s business growth in Asia, given its experience in the region, he said.
HSBC has operated in Asia-Pacific for 158 years, more than 140 years in Singapore, almost 140 years in Malaysia, and 134 years in Thailand.
“The bank has offered financial services to regional customers, generation after generation. We believe in our competitive advantages, despite challenges from other international banks in the region,” Mr Rosha said.
HSBC also modernised its services by introducing new sustainable products and services.
This transformation enables the bank to comply with international standards and regulations, including net-zero carbon emissions.
The bank is also working to help Thai companies in their transition to net-zero, he said.
Giorgio Gamba, chief executive of HSBC Thailand, said the bank is involved in a working group with the Bank of Thailand and other financial institutions to develop Thailand Taxonomy, a classification system of economic activity deemed environmentally sustainable.
For Thailand, HSBC offers a full range of green financial products and services covering deposits, loans, fund mobilisation, investment instruments and risk protection.
The bank is expanding green financial services in the Thai market, even though no specific target has been set in terms of the proportion of green financial facilities, said Mr Gamba.
Furthermore, HSBC offers private banking services to local high net worth individuals with an environmental, social and governance theme. He said this sector has been able to grow its business satisfactorily.
Mr Gamba said the delayed formation of a new government would not impact the bank’s business strategy for this year.
HSBC Thailand recorded a positive result for the first half of 2023 and maintains its business plan for the Thai market, he said.
“All political parties have expressed their interest in driving the economy forward, and the Thai economy is continuing to recover from the pandemic,” said Mr Gamba.
“I believe Thailand is a good place for foreign investors, while the execution of the new government’s policies will be a priority for foreign investors.”
HSBC Group announced pre-tax profit for the first half of 2023 of US$21.7 billion, up $12.9 billion year-on-year, and revenue of $36.9 billion baht, a rise of $12.4 billion.