HSBC Insurance (Asia Pacific) Holdings Ltd, an indirect wholly-owned subsidiary of HSBC Holdings Plc (HSBC), will be disposing of 49 per cent of its shares in HSBC Amanah Takaful (Malaysia) Bhd to FWD Life Insurance Company (Bermuda) Ltd. HSBC Bank Malaysia Chief Executive Officer Stuart Milne said the Minister of Finance, via Bank Negara Malaysia, has given approval for the transaction and it is expected to be completed during the first half of 2019.
“We have decided to exit the takaful manufacturing business and focus on our banking operations here. This transaction relates only to a change in ownership for the takaful joint venture. “For the HSBC Group, the transaction does not have any impact on our current businesses in Malaysia, comprising HSBC Bank Malaysia Bhd and HSBC Amanah Malaysia Bhd.
“Malaysia remains a key insurance distribution market for us and we will continue to support the insurance needs of our customers through our insurance partners,” he said in a statement today. Milne said HSBC aspires to be one of the leading domestic banks in that market, playing a full and universal role and competing at scale. “HSBC Bank Malaysia’s ongoing US$250 million investment to construct its new Malaysian headquarters in the new financial hub of TRX City underscores our commitment to developing our business in Malaysia,” he said.—Bernama