HSBC Amanah Malaysia appoints CEO

Marking another milestone, HSBC Amanah Malaysia Berhad has appointed Musa Abdul Malek as its first chief executive officer. Having officially opened as MalaysiaÆs first Islamic subsidiary of a locally incorporated foreign bank in August after a year-long transition, HSBC Amanah follows the same trend as MalaysiaÆs local Islamic banks.

Malek became CEO on October 24, having previously served as HSBC Amanah MalaysiaÆs acting CEO. He has been with HSBC Amanah Malaysia since 2001 and with HSBC Group for 29 years.

Prior to the local incorporation, HSBC Amanah MalaysiaÆs banking operations were led by managing director Yakub Bobat.

HSBC Amanah MalaysiaÆs local incorporation follows the example of local banks. Over the past four years, the sector has seen 11 out of 13 local banks convert their Islamic banking operations into independent subsidiaries. By converting to independent subsidiaries, MalaysiaÆs Islamic banks gain the independence to form strategic alliances. The move also allows for stricter segregation of Islamic funds.

MoodyÆs Global Banking predicts that all of MalaysiaÆs Islamic banking operations will be converted to independent subsidiaries by the end of 2008.

MalaysiaÆs Islamic banking assets account for 16% of the countryÆs total banking assets, or approximately $62 billion. Moody's Global Banking reports that MalaysiaÆs Islamic banking sector grew 15.4% in terms of assets in 2007.

Malek, who said he ôlooks forward to sharing his vast experience and heading up the Islamic banking business in Malaysiaö, will be responsible for developing Malaysia as HSBC GroupÆs Asia-Pacific Islamic banking hub.