YOUR FINANCES AND ALL THAT MATTERS TO YOU

AUGUST 2010ISSUE 6KDN : PP16208/06/2011(029654)

by

EURO TRASHED?Europe’s economic woes

has got the world onedge again Pg 4

BUILDING YOURGOLDEN NEST Pg 8

FEATURE STORY

Tomorrow's financialindependence starts today Pg 2

When you are an HSBC Premier and/or Platinum Credit Cardholder, a lifestyle of luxury is yours to experience. In this case, enjoying a premium game of golf with your buddy while we take care of your green fees. Now, all you need to take care of is your swing.

FREE* golf for you + 25% off* thegreen fees for a friend FREE*

golffor you

25% OFF*

for a friend

* HSBC Golf Privileges-Play FREE Golf Terms and Conditions apply. Please note that the use of Golf Privileges shall be subjected to further terms and conditions stipulated by the respective participating golf courses.

Not an HSBC Premier or Platinum Credit Cardholder yet?Call 1300 88 1388 or Visit www.hsbc.com.my

Issued by HSBC Bank Malaysia Berhad (Company No. 127776-V)

• Kelab Golf Sarawak• Pulai Springs Resort Golf Club• Kelab Golf Perkhidmatan Awam• Monterez Golf & Country Club• Bukit Unggul Golf & Country Resort Sdn Bhd• Shan-Shui Golf & Country Resort• Tawau Golf Club

• Nexus Golf Resort Karambunai• Orna Golf & Country Club• Berjaya Hills Golf & Country Club• Damai Laut Golf & Country Club• Cinta Sayang Resort• Penang Golf Resort• Clearwater Sanctuary Golf Resort

Participating golf courses and resorts:

Life is always a HOLE-IN-ONE for HSBC Premier and Platinum Credit Cardholders

As we look towards celebrating our nation’s Independence this month, we thought it would be interesting to ponder on how we, ourselves, cangain independence – more specifically gain financial independence.

Undoubtedly, each of us has made the commitment to work hard to provide for ourselves and our families, and also build our wealth for the future. We do it so that one day we can choose to stop working and enjoy life without having to worry about our finances. That’s what financial independence is about – to be able to live life to the fullest knowing that you have built a financial pipeline that will provide for you and the family well into the future.

So where do you start? Step one is to set your financial goals. Step two is to start as early as possible. But remember, planning for financial independence isn’t just about investing. Yes, investing in unit trusts or structured investments is important but there are also other areas which you need to factor in including investing in protection like health and life insurance, your children’s education and also planning to ensure that your wealth is managed and distributed properly if something should happen to you.

To help you on your way to gaining financial independence, we’ve outlined some key things you should consider and steps you should take towards gaining financial independence. Remember, the earlier you plan and the earlier you start, the faster you will be on your way towards financial independence.

And as you plan your road map to financial independence, do speak with your HSBC Relationship Manager to see how we can help you in achieving your goals. Perhaps if you plan it properly today, you can choose to retire and enjoy the fruits of your hard work sooner than you planned.

Best regards,

Lim Eng SeongGeneral Manager Personal Financial Services

PubLiShErHSBC Bank Malaysia Berhad(Company No. 127776-V)

EditoriaLBenny CheeJennifer KwokLooi Miin Wei

PrintEd byPercetakan Lai Sdn BhdNo. 1, Persiaran 2/118CKawasan Perindustrian Desa Tun Razak56000 Cheras,Wilayah Persekutuan Kuala Lumpur

For more information on HSBC products and services, please feel free to contact us.• Call 1 300 88 0181• Click www.hsbc.com.my• Visit your nearest HSBC branch

© Copyright. hSbC bank Malaysia berhad (Company no.127776-V) 2009. all right reserved.This publication is for private circulation to selected customers of HSBC Bank Malaysia Berhad (”HSBC”), and may not be redistributed, reproduced, copied or published, in whole or in part, for any purpose. This publication is solely for general information and does not constitute any advice, recommendation or offer by HSBC.

The opinions, statements and information contained in this publication are based on available data delivered to be reliable. HSBC does not warrant the accuracy, completeness of fairness of such opinions, statements and information and reliance thereon shall give rise to any claim whatsoever against HSBC.

Issued by HSBC Bank Malaysia Berhad (Company No. 127776-V)You may, at any time, choose not to receive direct marketing literature/information about our products and services. Please write to Direct Mailing Exclusion Coordinator at P.O. Box 13688, 50818 Kuala Lumpur, Malaysia with your request and we will delete your name from our direct mailing lists without charge.

off the cuff

Financial freedom begins today

HSBC Bank Malaysia Berhad August 2010 �

� HSBC Bank Malaysia Berhad August 2010

feature

How many of us can safely say that if we choose to stop working today, we can keep up our purchasing pattern for clothing, holidays, electrical gadgets and toys, and pay for our homes, cars, children’s music lessons and college tuition for years to come? If your answer is ‘no’, or

even ‘not sure’, then it is time for you to set your goals and plan how to manage your money better in order to be financially independent.

Financial independence must not be mistaken with merely earning a high income. An income is just a means to aid your financial independence. The true secret to increasing your net worth is to spend less than you make. It is a basic fundamental and the reality of money.

Don’t you ever wonder why, even as some people earn more, they are more often than not left wondering why financial independence and security are just always out of grasp? That is because they are not aware of the basic understanding that income is not wealth. Hence, if you are reading this, you are well on your way to paving your path to financial independence.

Depending on your lifestyle needs – being single, in a relationship, newly married, married with children – financial independence can be gained in many forms and be designed to suit you at any stage of your life.

Setting your goalsSure, setting your goals for your next holiday destination, luxury timepiece, sports coupe or electronic toy may be easy. But when it comes to putting aside a much more considerable amount towards a bigger return, it might be a bit more difficult, at first.

With time and the power of compounding, your investment may begin to amount to something bigger. For this to work, you would need to reinvest your earnings and give it time. The more time you give your investments, the more you are able to accelerate the income potential of your original investment, which may help to ease the pressure off you.

Compound interest is what makes financial independence possible despite rising costs of living, inflation, and other costs.

The range of investments is far and wide with many different types to choose from. Broadly speaking, they fit into four asset classes: short term deposits, bonds, property and shares.

Tomorrow’s financial independence starts today

To start, pen down your goals. You might discover that it might be more achievable than you initially thought it was. Be realistic and set some big (long-term) and small (short-term) goals. The smaller goals like saving for a deposit or paying off your credit card will be very helpful in supporting your bigger goals like owning a second house or saving for your early retirement.

Working out your goals and knowing your net worth will help in giving you a clearer picture of where you want to smartly place your hard earned money to start the ball rolling towards financial independence.

Keeping the wealth flowingBuilding wealth and becoming financially independent takes time and careful planning – but rest assured it will bear fruit in the long run. Simple, every day actions such as cutting your expenses and generating extra passive income via investments, for example, can help you maintain a steady flow in your wealth creation.

Other benefits:• Free overseas online money transfer anytime, anywhere• Instant help and support with worldwide assistance from

HSBC Premier Emergency Hotline (+1-908-PREMIER).• Enjoy the convenience of our service with an extensive

network of local branches (1,670 in UK and 35 across Australia)

• Manage your child’s spending with easy credit limit assignment to your supplementary card

Issued by HSBC Bank Malaysia Berhad (Company No.127776-V). Terms and Conditions apply.

She’s 7,000 miles away. Yet she can still lean on you. Now, that’s peace of mind.

Open your child’s overseas bank account right here in Malaysia, with HSBC Premier.

HSBC Premier Family ServicesSign up for HSBC Premier today.Call 1 300 88 9393 Visit www.hsbcpremier.com.my

HSBC Premier is the ideal financial tool for any parent with a child who is about to head to university in the UK, Australia or anywhere else. You can open their account in advance from Malaysia, even before they travel. After that, you can easily take care of their finances while they’re abroad. Now, that’s peace of mind.

3˚N – Kuala Lumpur, Malaysia51˚N – London, UK

feature

As you plan how to grow your wealth and be financially independent, you must also remember to plan to secure the wealth you are building for your family. Writing a Will can be a difficult task to face up to because it’s an acknowledgement that we have a finite time in this world. But having one prepared will ensure that your family will continue to enjoy financial independence if something should happen to you.

A Will lets you take control of what happens to your property and assets after your death, ensuring that your property and assets go to the beneficiaries that you have named in your Will.

Security through insurance Some may not know this but insurance is an important part of managing your money matters. It is a way to protect yourself and your family from financial loss if the unexpected happens to the things you own, your health or your ability to earn an income.

The right insurance policy can protect your assets and create peace of mind in case anything does happen. It takes years to rebuild equity. But a good insurance policy provides peace of mind and fewer worries about money.

When you consider getting insurance, you need to weigh the risks of not having the insurance against the costs of buying it. At times like this, insecurities play a big role in purchasing insurance. When managed correctly, insurance increases your financial independence.

building a nest egg for your children In today’s economy, knowing that your child will have a better financial and educational future when they are older is something that will ease your mind.

Teaching personal finance at a young age is important. Have your child set aside a certain percentage of the money they receive as early as possible. Since you are paying for their day-to-day needs (home, food, and clothes), saving a percentage of all the money they receive from gifts or part-time work should be easy and simple.

The percentage that you have set aside will grow over the years through compound interest and when it is time for your child to start college or university there will be no sweat and tears in trying to provide the best education for your child.

Taking up an insurance policy that builds cash value when your child is very young is another good way to start. When they come of age they can decide whether or not to cash it in or keep it to help better protect their own family.

If you have taken all the right steps and made the right plans, the day your child leaves for college or university will be one the whole family looks forward to. The educational nest egg that you have built up for them to pursue their education overseas can now be made easily available to them no matter where they are through HSBC’s Premier UniKit. Within 10 days after

“ With time and the power of compounding, your investment may begin to amount to something bigger.”

opening a sole or joint HSBC Premier account, both you and your child will have the essential banking tools and can instantly make an unlimited number of free overseas money transfers and manage your accounts from anywhere via online@hsbc.

Rest assured, wherever your child is in the world, international assistance and rescue is available when required with HSBC Premier.

So, take small steps every day – Rome was not built in a day, neither did Malaysia gain independence overnight. Set your goals, know what you want and work towards it. Write it down, frame it up – whatever it is, let there be a reminder that financial independence is attainable and you are capable of freeing yourself from the anxiety that money troubles can bring forth.

Eurotrashed?Europe’s economic woes has got the world on edge again

the road downhill starts in Greece Greece is one of the member states of the eurozone, an economic and monetary union of 16 European Union nations that have adopted the Euro as their common single currency.

With its adoption of the Euro, Greece – one of the smallest economies within the EU – found itself with a newfound ability to borrow money at low interest rates thanks to the strength of the Euro currency. And so began the country’s borrowing and spending spree on various high-profile projects, including the 2004 Athens Olympics which cost the country an estimated €4.45 billion1.

But with rising levels of inflation and widespread tax evasion within its borders, the Greek government has now found itself in a situation where it has not made enough money to pay for the loans it has borrowed. And that has resulted in the organisations that provided Greece those loans to be worried. Foreign banks and investors who hold an estimated 70% - 80% of the Greek government’s debt, and Western European banks2 that hold the other 15% - 20% are at risk of seeing their money disappear into

feature

� HSBC Bank Malaysia Berhad August 2010

thin air with the country’s national debt ballooning to 115% of its gross domestic product (GDP), budget deficit at 13.6% of GDP, and showing no signs of getting any better soon.

The EU and International Monetary Fund (IMF) have stepped in to provide the first fix with a €110 billion bailout package in March 2010. But Greece will need to figure out fix number two; this will be the difficult one as it will involve huge cuts in government spending and raising of taxes – both of which could easily send the country’s economy spiralling downwards even further.

A s the European Union (EU) continues to debate on how best to bail Greece out of a national economic meltdown, the rest of the world is holding its breath in case the

eurozone crisis spirals out of control and causes a premature halt to the global economic recovery.

HSBC Bank Malaysia Berhad August 2010 5

feature

But the collapse of Greece alone would not crush the EU’s economy. It’s the knock-on effects and fears of other EU countries going down the same path that has the world worried.

More than Greece make the problemPortugal, Italy, Ireland and Spain in particular, may also potentially fall into the same situation as Greece. Each country has announced various budget cuts and economic reforms to speed up the process for them to manage their respective country’s debts. These countries have been badly affected by the repercussions of Greece’s bailout, as both banks and investors have lost confidence in the reliability of investments or loans to countries within Europe.

Due to the current eurozone debt crisis, the banks have grown wary of issuing loans to other eurozone countries due to concerns of any possible debt defaults. As a result, the banks have started charging higher interest rates on loans to stem any possible losses, and the situation has grown increasingly difficult for countries such as Portugal to clear its sovereign debt.

There are fears that Greek’s debt crisis will cause a ‘domino effect’ as Portugal, Italy, and Spain are countries that also show high debt to GDP ratios as well. While Spain is the fifth largest economy in Europe, Italy accounts for more than 20% of total European sovereign debt.

With Greece included, the combined debt to GDP ratio of these five nations is significant enough to cause an economic crisis that could spread throughout the eurozone and spill over into the global economy. While the EU may have announced a second €720 billion

rescue package in May 2010 consisting of government-backed loan guarantees and a commitment to buy European sovereign bonds to stabilise the eurozone, it may still be only a stop-gap measure.

In order to contain their economic and financial problems, these five countries now have to balance new budgets that cut public spending and increase their tax revenues, and reduce their debts to the banks. But tightening their fiscal belts could easily stall the already tepid growth of these countries and cause them to head back into recession, and possibly pull the entire eurozone with them.

Perhaps a report by HSBC Global Research: depicts a clear picture: “In reality it’s just more of the same. The crisis has mutated [but] not been resolved.”4

What happens now?Frankly, nobody really knows.

There are mixed views on whether the eurozone on a whole should put a squeeze on public spending so the rest of the EU countries don’t end up in a situation similar to that of Greece, Portugal, Italy, Ireland and Spain. Widespread public spending cuts could send the eurozone back into recession and pull the rest of the world economy into a double-dip recession. Others believe that the solution is for troubled countries like the aforementioned to tighten their belts while countries in good economic health like Germany to continue spending.

Greece has announced it’s budget, public spending cuts, and tax hikes. Spain and Ireland have announced austerity measures to cut the budget deficit. Germany has banned “naked” short-selling of government bonds. Whether any of these measures will stem the problem, we will have to wait and see.

What is evident is that EU members that can – meaning countries that are solvent – need to lend a hand and bail out the weaker links. As Joseph Stiglitz, the Columbia University professor and Nobel laureate, puts it: “The European Union should have a fund to help member nations in need of financial aid such as Greece. Deficit fetishism is a mistake.”

As for the rest of the world, including those of us in Malaysia and the region, we can only wait and see. Certainly, because Europe consumes a lot of the products and services originating from this region, if the eurozone crumbles there will be a spill-on effect. But as China, India, and even Indonesia have shown, if you can create enough domestic demand, or even regional demand for that matter, you can actually cushion the impact of an economic crash.

So if our own Malaysian market and demand remains strong, and the rest of the region together with other emerging markets continue to grow at the rapid pace seen in Quarter 1 of 2010, there is every reason to be optimistic that we will experience very little, if any, of the knock-on effects of the eurozone crisis.

1 Athens News Agency via www.greekembassy.org: “Cost of Athens 2004 Olympics” 13 November 2004

2 J.P. Morgan: “Market update and investment views on Greece’s contagion risk”

3 The Star: “Idris Jala: M’sia must cut subsidies, debt by 2019 or risk bankruptcy” 27 May 2010

4 HSBC Global Research: “Emerging Markets: A wall of worry that’s the tip of the iceberg” 5 May 2010

“ In reality it’s just more of the same. The crisis has mutated [but] not been resolved.” HSBC Global Research

feature

� HSBC Bank Malaysia Berhad August 2010

borrowing money

Like any person, it is normal for a country to take loans. We may take a loan to buy a house. A country may take a loan to build a highway.

EurozonE’S SoVErEiGn dEbt ProbLEM: A layman’s view

EurozonE crisis:A concise timelineEurope’s economic woes has got

the world on edge again

05/11/2009Greece’s new government announces 2009 budget deficit will be 12.7% of GDP, more than twice the previously published figure

08/12/2009Fitch Ratings cuts Greek debt to BBB+, first time in 10 years it has been rated below investment grade

22/12/2009 Moody’s cuts Greek debt to A2 over soaring deficits

14/01/2010Greece unveils stability programme aimed at cutting deficit to 2.8% of GDP by 2012

29/01/2010Spain announces plan to save €50 billion through government spending cuts and public sector pay cuts

05/02/2010Spain attempts to raise retirement age from 65 to 67 triggering union protests

05/03/2010Greece announces new package of tax increases and public sector pay cuts to save an extra €4.8 billion; state-funded pension frozen

HSBC Bank Malaysia Berhad August 2010 �

feature

Paying back the money

So like any person caught in a financial fix, they need to immediately do a couple of things: firstly, find someone who will loan them money while they figure out how to fix the financial mess; and secondly fix the financial mess by finding ways to spend less and earn more.

While ordinary bank customers can mortgage their home or sell their car to refinance their loans, these countries do not have the luxury of such a choice. And that is why they have to now depend on the bailout packages to make ends meet while they right their ships.

Sources:The Star: “BRIC economies to peak in 40 years” 22 May 2010

Goldman Sachs: “Is this the ‘BRICs Decade’?” 20 May 2010

Goldman Sachs: “The BRICs as Drivers of Global Consumption”

25/03/2010 Eurozone leaders and IMF agree to create joint financial safety net to help Greece

11/04/2010Eurozone finance ministers approve €30 billion aid mechanism for Greece

23/04/2010 Greece asks for activation of EU/IMF aid

27/04/2010 Standard & Poor’s downgrades Greece’s debt to junk status; following day downgrades Spain’s debt due to poorgrowth prospects

02/05/2010Greece agrees to bailout deal with EU and IMF in exchange for additional budget cuts of €30 billion over three years; bailout package amounts to €110 billion over three years and is the first for a member of the 16 nation EU

10/05/2010Global policymakers set up emergency financial safety net worth €750 billion to bolster financial markets and shore up the euro against contagion from the Greek crisis

13/05/2010Portugal draws up steps to slash deficit including public sector pay cuts

25/05/2010Italian cabinet approves €24 billion austerity package to cut deficit to 2.7% of GD by 2012

27/05/2010 Spanish government approves €15 billion austerity package

28/05/2010Fitch cuts Spain’s credit rating on record household and corporate debt andmounting public debt

07/06/2010Germany approves budget cuts and taxes aimed at saving €80 billion over three years

11/06/2010Greece vows not to default on its loans

borrowing too much money

The problem with Greece, Portugal, Italy, Ireland and Spain is like a bank customer who has overextended himself by taking out too many loans and now finds himself without the required cash flow to pay off the loans.

When you are late on one payment here and miss another one there, banksget veryconcerned.

building your

golden nest F or many of us who have

been working for a large part of our adult lives, the

retirement years are certainly something that we look forward to. Many retirees describe their post-working years as a fresh breath of life that makes them feel younger than ever before.

This is the time to pursue activities you wanted to do but did not have the time or resources during your younger days. With an average life expectancy for women at 76 years and men at 72 years1, Malaysian retirees could now have as many as 20 years or more to enjoy their golden years.

However, to some, retirement means depending on your family to support your lifestyle. HSBC’s research study,

feature

� HSBC Bank Malaysia Berhad August 2010

“The Future of Retirement III” found that most respondents cited their family as their most important source of retirement income2.

But should that really be the case?

After all, it’s only natural you want to enjoy the fruits of your labour without restriction and be financially independent. Depending on others can mean watching your dreams taking a backseat, especially when faced with burdening loved ones for your retirement income. But growing old doesn’t necessarily mean you have to constantly worry about running out of savings or the threat of illnesses or disabilities.

In retirement, you should be able to pursue your interests while enjoying the same level of living standards, and the best way to this path is by achieving financial independence for yourself. In most cases, to be able to enjoy the same level of living standards in retirement, you would need between 70% to 80% of your current income. Relying solely on your EPF might not sustain you throughout your golden years, especially with the unpredictability of life as anything can happen.

Your EPF, while a good start to saving for the retirement years, would not give you adequate income spread over 20 years

feature

HSBC Bank Malaysia Berhad August 2010 �

} Steady stream of income until the age of 75

} receive up to 11.30% p.a. for single contribution and 12.20% p.a. for regular contribution on your contribution and accumulated profits (if any)^

} Enjoy a potential longevity bonus* in the form of payout upon maturity of this plan

} Potential surplus sharing to grow your retirement savings

} Flexibility of choosing to save via a single contribution or regular contribution

} Enjoy takaful protection throughout the tenure of the plan

} Pass on your wealth as a gift to your loved ones to secure their future

^ The amount of the payout varies according to your entry age, contribution mode and amount, and tenure of your accumulation period. It is subject to the performance of the Participant Fund and is not guaranteed. The 11.30% p.a. is based on the assumption of a gross 4.78% p.a. return of investment for a 55 year old with RM100,000 single contribution and an accumulation period of 10 years. And 12.20% p.a. is based on the assumption of a gross 4.78% p.a. return of investment for a 40 year old with a RM12,000 regular annual contribution and an accumulation period of 25 years.

* Provided that the Certificate is not cancelled, surrendered or terminated due to death/Total and Permanent Disability (TPD)/Critical Illness (CI) prior to maturity.

WhyhSbC retirement Protection Plan?

for you to enjoy the standard of living you seek in your golden years. In fact, statistics suggest that 70% of retirees use up all their EPF savings within three years of retiring3. It is no wonder then that only 14% of Malaysians are confident about their preparation for retirement now compared with 23% in 20073.

So how do you stay ahead of the game? The key is to build your retirement nest egg as early as possible to ensure that you continue to derive a regular stream of retirement income well into your golden years. Malaysians have certainly started to take heed. We are now starting to plan for retirement at the age of 34 versus 37 in 20073. Start planning ahead and ensure that your retirement is protected from factors like inflation, economic fluctuations and health issues.

By doing so, you can look forward to living out your retirement years to the fullest.

Seek professional adviceA research study by HSBC, “The Future of Retirement”, revealed that up to 73% of respondents failed to seek advice from financial professionals. Perhaps this may explain why 77% of Malaysian are putting their money in low-yielding savings vehicles. While reading a few books about investments is good knowledge, it doesn’t make you a pro. Your best bet when planning for your retirement is still a financial professional who can assess your current financial position and give you unbiased advice on how to reach your retirement goals. Consult with our financial professionals and let us help you strategically plan your preferred retirement today.

diversification is keyFamiliar with the adage “Never put all your eggs in one basket”? It holds true when you are planning for your retirement. You should look at ways to not just create wealth for your retirement, but also to protect that wealth. For example, unexpected health complications in your later years can easily wipe out all your retirement savings and put a dent in your retirement plans. With the help of your HSBC or

HSBC Amanah Relationship Manager, you’ll be able to tap into retirement products that can help you diversify your retirement savings portfolio that both create and protect wealth. And if you start planning early for your retirement with us, you can benefit through potentially attractive regular payouts and Longevity Bonus^.

Stretching your Employees Provident Fund (EPF) While withdrawing your EPF in a lump sum is tempting, the smarter option is to opt for periodical withdrawals over the period of your retirement. This will ensure that you will not use up all your EPF savings within the first few years of your retirement. Also, be wise about what you do with the EPF withdrawals. While you may use a portion for your retirement expenses, you should also consider re-investing your EPF withdrawals into low-risk investments that can provide better returns than EPF.

hSbC retirement Protection Plan**

Consider HSBC’s Retirement Protection Plan. You can withdraw from your EPF savings at the age of 50 and 55 to fund this plan with a minimum single contribution amount of RM100,000 or a minimum regular contribution of RM1,000 a month to help grow your savings and preserve your wealth against the effects of inflation over a certain time period. Plus, it will provide you with a regular stream of retirement income up till the age of 75.

Learn more about HSBC’s Retirement Protection Plan:}Talk to your Personal Banker or Relationship Manager}Call us at 1 300 88 0181}Click www.hsbc.com.my

Source:

1 The Star: “Can you retire?” and “Counting on the nest egg”, 27 May 2007

2 HSBC’s Future of Retirement III, Malaysia Report

3 The Star: “Saving early for retirement”, 21 June 2009.

^ Provided that the Certificate is not cancelled, surrendered or terminated due to death/Total and Permanent Disability (TPD)/Critical Illness (CI) prior to maturity.

** Retirement Protection Plan is managed by HSBC Amanah Takaful (Malaysia) Sdn. Bhd. (Company No. 731530-M)

It takes many years to build up your assets How you want them distributed can only be indicated by a Will

From 21 July - 20 October 2010

per annum1 aboveprevailing board rate2%

Enjoyextra

There is a minimum deposit required for each Participating Foreign Currency. The exclusive offer is only applicable if the source of funds for the HSBC CombiNations Foreign Currency Time Deposit Account/HSBC Amanah Foreign Currency Term Deposit-i2 placement is from conversion of Malaysian Ringgit to a Participating Foreign Currency or from conversion of one foreign currency to a Participating Foreign Currency. The Participating Foreign Currencies are: (i) HSBC Bank: USD, GBP, AUD, SGD, EUR, NZD and CNY (ii) HSBC Amanah: USD, GBP and EUR1 HSBC CombiNations Foreign Currency Time Deposit Account/HSBC Amanah Foreign Currency Term Deposit-i2 campaign Terms and Conditions apply. Programme period from 21 July

2010 to 20 October 2010. The conversion of funds for the said placement or upliftment under this Programme is subject to the inherent risk of currency fluctuation and exchange rate applied shall be the rate at the time of actual conversion.

2 Foreign Currency Term Deposit-i is a product of HSBC Amanah Malaysia Berhad (Company No. 807705-X) (“HSBC Amanah”) and HSBC Bank is a distributor of this product.

Issued by HSBC Bank Malaysia Berhad (Company No. 127776-V) (”HSBC Bank”) Information is correct as of time of printing.

Call 1 300 88 1388Click www.hsbc.com.myVisit your nearest branch now

An exclusive offer for you. From now to 20 October 2010, take advantage of our special offer for potentially better returns when you make Foreign Currency Time Deposit/Foreign Currency Term Deposit-i2

placement with us.

PARTICIPATINGFOREIGN

CURRENCY

* The above Current Board Rate and Special Interest Rate/Special Profit Rate are indicative and is accurate as at 29 July 2010. For the latest rates, please refer to your nearest branch.

USD (United States) 3 mths 0.01% 2.01%

GBP (Great Britain) 3 mths 0.05% 2.05%

AUD (Australia) 3 mths 4.00% 6.00%

SGD (Singapore) 3 mths 0.01% 2.01%

EUR (European Union) 3 mths 0.01% 2.01%

NZD (New Zealand) 3 mths 2.25% 4.25%

CNY (China) 1 mth 0.65% 2.65%

feature

It takes many years to build up your assets How you want them distributed can only be indicated by a Will

1. What is a Will? Document which contains the Testator’s wishes on matters

which will take effect after his lifetime.

2. how does it work? The Executor must administer the deceased’s estate

according to the Will.

3. What is required? For a Will to be valid, certain formalities must be observed.

4. how to do it? Testator must follow section 3, 4 and 5 of the Wills Act 1959.

5. What is the law governing it? The Wills Act 1959.

6. What happens if you don’t have a Will? Assets will be distributed according to the Distribution

Act 1958 (amended in 1997).

7. how do i go about getting a Will? Testator may prepare his own Will or sign up for HSBC Will

Writing Services.

8. What requirements are needed to do a Will? Witnesses? Etc Testator must be at least 18 years of age and of sound mind. The Will must be made in writing and signed by a Testator in the

presence of two Witnesses.

9. is a Will applicable to everyone or can it be overridden by Shariah Law?

Muslims can also make a Will to dispose up to 1/3 of their net assets to Non Heirs. However Muslims cannot make a Will to change the Heir’s entitlement under Faraid. Example is as follows:

10. What are the advantages of having a Will? Testator can appoint an Executor to administer his estate

and nominate a Guardian for his minor children.

11. how do i exercise the Will when someone has passed on? The Executor will need to use the Will to apply for Grant of

Probate to “unfreeze” Testator’s assets.

deceased husband: (With Children)*

Surviving heirs

Wife

Father

Mother

Son

Daughter

Shares/Entitlement

1/8

1/6

1/6

Residuary

Residuary

Equals to

9/72

12/72

12/72

26/72

13/72* For Guidance only. There may be different methods of calculation depending

on each case.

Enjoy a discount of rM200 when you sign up for hSbC Will writing services today. bring this voucher to any hSbC & hSbC amanah branch.

Will Writing VoucherName:

RM

Issued by HSBC (Malaysia) Trustee Berhad (Company No. 001281-T)

Terms and conditions:• The Will Writing Services is provided by HSBC (Malaysia) Trustee Berhad - Private Wealth Solutions • This voucher is given out to new and existing customers of HSBC Bank Malaysia Berhad and HSBC Amanah MalaysiaBerhad and each customer is entitled to redeem one (1) voucher throughout the campaign period regardless of the number of accounts he/she holds • Our fee for the Will Writing Services is determined by the complexity of the Will • HSBC has the discretion to revoke the promotion at any time during the campaign • This voucher is non transferable or exchangable for cash or other services and is not valid together with any other promotions • Voucher is valid until 15th July till 31st October 2010

Authorised By

Signatory for the voucher, Hew Su ChanHead of Private Wealth Solutions

No.

NRIC No: / /

Entitlement

Spouse - Entitled to whole estate

Spouse - 1/2 Parents - 1/2

Children - Entitled to whole estate

Parents - Entitled to whole estate

Spouse - 1/3 Children - 2/3

Parents - 1/3 Children - 2/3

Spouse - 1/4 Parents - 1/4 Children - 1/2

Surviving beneficiaries

Spouse only (no parents/children)

Spouse + Parents (no children)

Children only (no spouse/parents)

Parents only (no spouse/issue)

Spouse + Children (no parents)

Parents + Children (no spouse)

Spouse + Parents + children

Promotion valid from 15 July - 31 October 2010. Terms & Conditions apply.