Addressing HSBC’s growth potential in Malaysia, he says there is a recognition of the immense opportunities in the country (Photo: SooPhye)
Imagine leading a company with a 140-year legacy in Malaysia, particularly a banking institution that has evolved into a veritable empire. Options sits down with Datuk Omar Siddiq, CEO of HSBC Bank Malaysia Bhd, to discuss how it has been a key player in the country’s development narrative, the evolution of our banking system and how he is driving the bank’s growth alongside its people.
And it all starts with a history lesson.
HSBC — founded in March 1865 by Thomas Sutherland, a young visionary Scotsman who was working in Hong Kong — began with the mission of financing trade between Europe and Asia. Just a month after opening its doors, the bank established a Shanghai outpost and its headquarters still stands at 1 Queen’s Road Central in Hong Kong.
International trade has always been at the core of HSBC’s business. This is a bank that has weathered the collapse of financial institutions, survived wars and overcome staffing shortages. Today, it is one of the world’s largest banking and financial services organisations with three global businesses that serve about 42 million customers in 62 countries and territories.
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Making headway
“We started in this part of the world in 1884, with our first branch in Penang. This was in line with HSBC’s origins, having been founded in Hong Kong and Shanghai to facilitate trade and commerce. Over time, we expanded our mission to include wealth management for our customers,” says HSBC’s first Malaysian CEO.
“Initially, our archetypal customers were entrepreneurs engaged in business and export. Malaysia, with its strategic trading centres in Penang, Melaka and Singapore — which were essentially the Straits Settlements — was a natural fit for our expansion. Over 140 years, we have grown to a peak of 68 branches across Peninsular Malaysia, Sabah and Sarawak, mirroring the country’s development and growth. Malaysia remains a very open trading economy, with a trade-to-GDP ratio of about 1.5 times.”
In addition to serving retail customers with regional and global needs, the bank has introduced numerous innovations. “We were pioneers in introducing ATMs (automated teller machines) and have continued to innovate with internet banking and corporate cash management solutions. Throughout our history, we have been an integral part of Malaysia’s fabric, focusing on trade, commerce and individual wealth management,” he says.
HSBC has played a significant role in Malaysia’s growth by providing essential financial services across various sectors, including construction, real estate, and electrical and electronics. The bank has facilitated trade and investment, helping to bring international wealth products to our shores and supporting local businesses in their expansion.
A notable aspect of HSBC’s impact is its long-standing relationship with its customers, many of whom have banked with the financial institution for generations. Families often share stories of how the bank provided their first loan, enabling them to build successful, now-listed companies. This deep-rooted connection extends to the staff, with several employees being second- and third-generation members of the HSBC family. This legacy underscores the bank’s enduring relevance and contribution to the nation’s development.
“Banking is built on trust. It’s about knowing your customers and building mutual trust over time. Here, we’ve supported customers through generations, not just in their businesses but also personal lives. We’ve helped families send their children abroad for studies, grow their wealth and support their kids working internationally. Some of the local companies we’ve worked with have grown into regional and global enterprises, and we’ve been with them every step of the way. We’re very proud and privileged to have this long-standing relationship, which is a testament to our 140-year history,” says Omar.
All this is in line with its new campaign that drives home the point: No one knows exactly what the future holds but HSBC has been around nearly every conceivable corner, in every part of the globe. “And if we haven’t, we can connect you with someone who has. That’s the true power of our international networks. Helping you see around life’s corners,” it proudly proclaims.
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A world of opportunity
HSBC boasts a strong global presence and is able to connect Malaysia with the world and vice versa. The bank’s foothold in major trading hubs like the US, the UK, China, Hong Kong and Australia allows it to facilitate the supply chain development of Malaysian companies overseas. By using its international network, HSBC can help them expand abroad and bring foreign investors to the country.
“Additionally, this interconnectedness extends to customers to set up bank accounts for their children studying abroad, as well as making transitions smoother for those moving to places like Australia or the UK. This global reach and local expertise make HSBC a valuable partner for both businesses and individuals in Malaysia,” says Omar.
There have been a couple of exciting developments this year. One of the highlights is the introduction of its Premier Elite service, tailored for high-net-worth individuals. “This new offering combines wealth management with lifestyle benefits, addressing the unique needs of affluent customers. Since its launch a few months ago, the response has been overwhelmingly positive, thanks to the additional services and personalised attention we provide.”
Another recent launch is the TravelOne credit card, which lets users earn more rewards while travelling, aligning perfectly with the lifestyle of many Malaysians who enjoy exploring the world.
“Just yesterday, we introduced SmartCash Plus that allows one to cash out from the additional credit limit granted to your HSBC card account, which helps customers maximise the value from their banking products. This initiative reflects our commitment to continuously innovate and meet the evolving needs of the market,” he says.
On the corporate front, a rather important announcement is the allocation of about a billion US dollars as credit fund for Asean. This is specifically tailored to support new generation business platform players with customised debt facilities that better suit their business models and growth trajectories.
“These initiatives underscore our dedication to innovation and responsiveness to customer needs. By leveraging insights from our global network and understanding local market dynamics, we strive to remain a trusted partner in Malaysia’s financial landscape,” Omar explains.
Addressing HSBC’s growth potential in Malaysia, he says there is a recognition of the immense opportunities in the country. With the bank’s long-standing history in this part of the world, it views Malaysia as a pivotal part of its long-term strategy, which is aligned with Asia’s emergence as a global growth engine. Within Asean, Malaysia holds a central position, making it strategically significant for regional operations. The brand’s enduring strength stems from its long-standing commitment and the trust it has built over the decades. Seen as a reliable partner, HSBC brings its international expertise and a diverse range of financial solutions to both individual and corporate clients in Malaysia.
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Lion's share
How has HSBC strengthened its brand to make it more iconic, attractive and memorable for its audiences, services and markets?
“The two lions,” Omar laughs, referencing HSBC’s iconic beasts, Stephen and Stitt, named after senior managers from the early 1920s, when the bank opened its new office in Shanghai’s renowned waterfront area, the Bund. The office boasted a Venetian mosaic dome and these lions became emblematic symbols of HSBC’s enduring presence in the region and beyond.
“From my earliest memories, it has always been about the lions. I remember vividly opening my first bank account in PJ State, Selangor, where the tabung, decorated with a lion, represented the beginning of my financial journey. Even now, it remains a powerful symbol of HSBC, deeply ingrained in our brand identity. Beyond its symbolism, the bank embodies core values of trust and international connectivity. Our advertising campaigns consistently emphasise our commitment to expanding horizons individuals and businesses alike. With 140 years of presence in Malaysia and more than 150 years globally, HSBC stands as a pillar of stability and growth, steadfastly supporting our customers on their paths to success.”
HSBC is witnessing a transformative period driven by its dedicated team whose values align closely with the organisation’s ethos. The commitment to sustainability and inclusivity has become integral, resonating deeply across all levels from senior management to the broader staff base. Embracing Malaysia’s rich diversity, the bank’s workforce, predominantly Malaysian, exemplifies a deep-seated passion for the nation’s growth on the global stage. “And we’re very muhibbah. It’s a wonderful thing to see,” Omar enthuses.
“I’m extremely proud to see the diversity and inclusion in our team. The values we aim to instil in our children, such as being colour and gender blind, are actively embraced here. For instance, my team consists of almost two-thirds women, all selected based on merit, and it’s a source of great pride for me. I’m confident that our group also shares this commitment to meritocracy and inclusivity.”
The bank has demonstrated a strong commitment to corporate social responsibility through long-term partnerships and heritage restoration efforts. Since 2011, HSBC has collaborated with the Global Environment Centre (GEC) to rehabilitate the North Selangor Peat Swamp Forest (NSPSF), investing RM4,309,808 in community-based rehabilitation and protection initiatives. Additionally, in recognition of its first office in Penang, the bank funded the restoration of the historic Suffolk House building. Over six years, HSBC has donated RM2.4 million to support these restoration efforts, underscoring its dedication to preserving Malaysia’s cultural heritage.
It is also supporting the works at The Bendahari, a creative heritage hub in Melaka that has been engaging locals and foreigners with an authentic city experience and co-creating with Melakan artisans and heritage tradespeople. “Even small contributions from us can create a significant impact. Melaka, like Penang, wonderfully showcases Malaysia’s international heritage, reflecting our history as a trading nation — a fact often forgotten. At HSBC, we are deeply passionate about preserving this heritage.”
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Creating shared value
Omar was appointed CEO in March 2022. Looking back at his main achievements so far, he says the greatest satisfaction lies in witnessing the growth of his colleagues. “As CEO, I see myself not only as a leader but also a coach and mentor. It’s my responsibility to empower others to continually improve and exceed their own expectations. Engaging in discussions, sharing experiences and exchanging ideas are crucial parts of this journey.
“Drawing on my experience, I find fulfilment in seeing how much my team has progressed over the past year, gaining confidence and achieving tangible results. Our outstanding financial performance in 2023, a record year in our 140-year history, reflects this collective growth. The last time we saw such success was in 2012 and I’m optimistic about continuing this momentum into 2024.”
When asked to describe his leadership style, he mulls it over before saying: “I can define it one way but my colleagues would perhaps do it differently. In all honesty, I try to be very collegiate, encouraging and more of a coach. At a certain leadership level, everyone is already capable and it’s about helping them improve just a bit more and pushing them that extra mile. It’s not about dictating but problem-solving and finding solutions together. I view my role more as a coach in that sense.”
Challenges are often beyond our control, but as a banker, Omar is trained to anticipate them. “Whether it’s a technological hiccup, a new government policy or an international macroeconomic event, our focus is on how we react and help our customers. These day-to-day challenges require us to be proactive and prepared. As management, our job is to anticipate, prepare and lead our staff in navigating these issues.”
Prior to this, Omar was deputy CEO (Malaysia) and CEO of group wholesale banking at CIMB Group Holdings Bhd. “I feel very blessed to have worked for a couple of organisations and with many customers,” he fondly reminisces. He recalls notable figures such as Tan Sri Jeffrey Cheah of the Sunway Group, whom he considers a wonderful and visionary, yet humble leader.
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Omar also served under Tan Sri Nazir Razak and Tan Sri Azman Mokhtar at CIMB. He always enjoyed his time with Nazir, who constantly pushed him, questioning and challenging him to think outside the box. On the other hand, Azman left a huge impact as a great strategic thinker who was able to connect things others often overlooked and was dedicated to pursuing good outcomes. “I learnt from him that a position of leadership is one of great responsibility and should not be taken lightly,” he says.
“To improve on leadership, reading is critical. Attending leadership courses is excellent but the greatest learning comes from interacting with other leaders, customers and colleagues at HSBC. Connecting with the people around us teaches valuable lessons. I also learn so much from my 11-year-old daughter. The key is to keep an open mind and always strive for improvement. Understanding that one is never the finished article ensures there are always new things to learn every day,” says the father of three.
Omar is also a non-independent executive director of HSBC Amanah Malaysia Bhd and a director of British Malaysian Chamber of Commerce Bhd, as well as chairman of the special committee for the iron and steel industry under the Ministry of Investment, Trade and Industry and on the advisory council of Yayasan Peneraju Pendidikan Bumiputera under the Ministry of Economy.
“I’m deeply passionate about education and believe it is absolutely critical. I actively spend time with people I know, whether it is enhancing financial literacy for our country or addressing broader educational needs.”
This article first appeared on June 24, 2024 in The Edge Malaysia.
