Product Disclosure Sheet HSBC Bank Malaysia Berhad: Public
Product Disclosure Sheet HSBC Bank Malaysia Berhad: Public
For urgent Bank Guarantees, GuaranteeSmart is available subject to facility being fully secured by 100% cash deposit.
This guarantee is applied for by our customer (bidder) to support their tenders for contracts from potential buyers. The
buyer is afforded a financial remedy if the tender is withdrawn by the bidder or the successful bidder fails to enter into
a contract, or does not provide subsequent bond, such as a Performance Guarantee, to support the contract. The purpose
is to substantiate the financial standing of the bidder.
Performance Bond
This guarantee replaces the Tender Bid Bond if the tender is accepted. Performance Bond is an undertaking on behalf
of our customer (principal), to pay cash if the obligations of the principal under the contract are not discharged. The
amount of such bonds is usually based on a percentage of the value of the contract and is significantly greater than that
of the related Tender Bid Bond.
This guarantee is an undertaking to pay, on behalf of our customer (principal), the sum paid in advance under the
contract by the contracting party (beneficiary) for obligations that have not yet been performed. Contracts sometimes
include provisions, which allow principals to receive advance payments from beneficiaries for purposes such as
mobilising plant and equipment or purchase of raw materials. The terms of such contracts normally provide that such
sums advanced must be paid from (set-off against) progress payments under the contract. The beneficiary can recover
the amount paid or a part thereof under the Advance Payment Guarantee if the principal fails to fulfil their underlying
contractual obligations.
Retention Bond
Contracts may allow the contracting party (beneficiary) to retain a proportion of the contract sum until substantial
completion of the contract has taken place, such as remedial works during warranty period. The beneficiary may be
prepared to release this retention money to the principal against the presentation of this guarantee.
Financial Guarantee
A common type of guarantee issued to provide our customers with the means of obtaining facilities (which, for BG-i,
should not be interest-bearing facilities or contain elements contrary to Shariah), from the beneficiaries of the
guarantees, who may, if the need arises, claim under such guarantees up to a maximum amount and within a set period
of time. For example; rent payments under a lease agreement, payment for utilities, court fees, etc.
Other Guarantees
This includes types of guarantees other than the ones mentioned above. Examples are Service Deposits, Supply
Contracts, Security Deposits etc.
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Allows your company/business to expand into new markets.
Provides security to your counterparty by a reputable bank.
Facilitate open account trade business for your company
Issuance commission is calculated based on the exact number of months the guarantee is valid for (From Value Date
until Liability Date). Issuance commission for a guarantee amount of MYR10,000 for 7 months would be computed as
follows: -
If the guarantee amount has to be recovered by any process of law, all fees and expenses in connection with such
recovery, including the Bank’s solicitor, fees and cost, shall be borne by the customer.
Whilst you do not specifically need to take up any takaful coverage for this product, you are encouraged to consider
taking up appropriate coverage to protect your goods / business such as Marine Cargo Insurance, Fire
Commercial or Flexi Business Shield. Please contact your Relationship Manager for further details.
If you wish to speak to our Trade representative, you may contact us at:
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Client Service Team
Tel: 1-300-88-1099
Email: [email protected]
If you wish to complain on the products or services provided by us, you may contact us at:
Customer Experience Team
HSBC Bank Malaysia Berhad
2 Leboh Ampang
50100 Kuala Lumpur
Malaysia
Fax: +603-2179 1111 (9.00AM to 4.00PM – Monday to Friday)
E-mail: [email protected]
If your query or complain is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK or
TELELINK at:
Bank Negara Malaysia
P.O. Box 10922
50929 Kuala Lumpur.
Tel: 1-300-88-5465 (1-300-88-LINK)
(Overseas: 603-2174-1717)
Fax: 603-2174 1515
E-mail : [email protected]
SMS: 15888
Operating Hours: 9.00AM to 5.00PM – Monday to Friday
Please also contact your Relationship Manager or Trade Representative for details of other Non-Financed Trade
Services.
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