THE National Union of Bank Employees (NUBE) has urged the Penang state government to review the Memorandum of Understanding (MoU) that signed between the state-owned InvestPenang and HSBC Bank Malaysia Bhd.
The MoU, which was inked on Oct 25, 2021 focuses on bringing high-quality foreign direct investments into Penang and Malaysia.
“Recently, NUBE received a letter from the Penang state government defending their collaboration with HSBC, implying that the state government will continue to implement the MoU that has been signed despite the exploitation of workers and several international financial scandals,” the union said in a statement.
“NUBE has always welcomed ethical and law-abiding foreign investors and their investments to Malaysia since such employers will not only provide employment opportunities but also safeguard the rights of workers and not otherwise.
“However, NUBE raised objections to this collaboration because of HSBC Bank’s repeated actions to undermine workers’ rights in Malaysia.
“These include breaching labour laws and regulations by laying off staff, particularly NUBE members, during the pandemic last year, and the closure of numerous branches, making it difficult and burdensome even for banking customers in the country.”
According to NUBE, HSBC Group has also been at the centre of some of “the biggest financial scandals uncovered this century, worldwide”.
“In the US, for example, HSBC Group had paid a US$1.9 bil settlement after being found to have permitted cartels – namely the Sinaloa Cartel – to launder their money,” NUBE said.
“Australia, South Africa, Argentina, the United Kingdom (UK) and Switzerland have all fined HSBC group for charges on money-laundering.
“Besides being involved with tax avoidance schemes and defrauding its own clients, the HSBC Group has long been alleged and associated with bankrolling global deforestation, leaving affected communities around the world in the lurch.
“Apart from that, at the international level, HSBC is under fire for holding millions of shares in a Chinese firm linked to atrocities against Uighur Muslims.
“The bank has also been criticised for failing to stand up for democracy in Hong Kong.”
In the best interest of all parties
NUBE added that it strongly believed that it is in the best interest of all parties to end the collaboration between InvestPenang and HSBC Bank Malaysia Bhd.
“By going forward with this, NUBE is convinced that the Penang state government is taking a stand against workers’ rights and truth.
“Any institution that stands against truth will not last; all gains will be lost, and the harm done to others shall soon be inflicted on oneself.”
NUBE also said that if the Penang state government is committed to fighting corruption, money laundering, kleptocracy and protecting workers’ rights, it is difficult to understand why the state government would “conspire with a foreign investment institution that took part in one of the most notorious episodes in money laundering history”.
There is no point in condemning other leaders or governments for kleptocracy when the state government itself is encouraging the same by engaging a foreign investor with similar traits, it added.
“The main responsibility of an elected government is to protect the citizens who gave them their mandate,” NUBE pointed out.
“Malaysia is at a point where its citizens are distrustful of the institutions built to protect them, and by going forward with the MoU, it will further erode the trust in the Government.
“By colluding with HSBC Bank Malaysia, the Penang state government risks losing its credibility and integrity.”
NUBE went on to remark that while the economic impact of COVID-19 is devastating, choosing material gains over justice and integrity is far more detrimental as it weakens the institution, its people and its values and principles.
“And by allowing this, the Penang state government becomes responsible, at least in part, for the suffering caused by HSBC’s lack of moral compass.
“Therefore, it is necessary for all government agencies to carefully contemplate the consequences of condoning the exploitative actions of the bank towards the Malaysian workers.” – Feb 9, 2022