Instead of being threatened, small economies can actually ride on the momentum of China’s economic development, according to Michael Smith, president and chief executive of Hongkong and Shanghai Banking Corp. (HSBC).
The Philippines ought to have enough opportunities simply because of its proximity to China, Smith said, adding that there will be spillover investments that will be looking for alternative areas in which to invest.
And for the added reason that the government has been making some progress in dealing with its fiscal problems, the UK-based banking giant is, in fact, bullish on its business prospects in the Philippines.
In a recent talk with newsmen from the Philippines and India, HSBC Group chief executive Stephen Green said he sees good opportunities in the Philippines.
One area in which the Philippines can play an important role in HSBC’s business platform is offshore processing or what Green refers to as "international resourcing." He noted that the Philippines enjoys a competitive advantage over its neighbors in that it has a high level of education and that the use of English is widespread.
Green’s pronouncements regarding the country’s importance in terms of international resourcing is no empty talk. HSBC has put up inside the Filinvest Corporate Center in Alabang, Muntinlupa a five-story building that will house a 2,500-seat call center that will service the bank’s North American clientelle.
While this is already a major expansion from the bank’s existing call center capability in the country, Green feels that there will be further expansions in line with HSBC’s unique spread of international businesses.
Green was in Hong Kong last week to preside over an informal meeting of the bank’s stockholders who wouldn’t be able to attend the annual general meeting slated later in the week at the HSBC headquarters in London.
The informal meeting was highlighted by a changing of the guard — with erstwhile bank chairman David Eldon stepping down after 37 years of service in favor of Vincent Cheng, the first ever Chinese to hold the position of chairman since HSBC was founded in March 1865.
Green disclosed that HSBC, as did many other big players, has made substantial investments into China. Among these is the acquisition of a 19.9-percent interest in the Bank of Communications.
"We believe in 10 years or 20 years time China is going to be a very exciting market which would have a lot of demand for sophisticated banking, investment and insurance services," Green said.
He said this was why HSBC had to buy into financial institutions to ensure it had a platform of banking, insurance and fund management in the mainland.
With assets totalling $1.277 trillion as of Dec. 31, 2004, HSBC is one of the world’s biggest banks. Its international network comprises over 9,800 offices in 77 countries and territories in Europe, Asia-Pacific, the Americas, the Middle East and Africa.
HSBC provides a comprehensive range of financial services to more than 110 million customers.