Malaysian Takaful Joint Co

HSBC Holdings PLC
30 January 2006


   HSBC OBTAINS APPROVAL TO ESTABLISH JOINT VENTURE ISLAMIC INSURANCE COMPANY

HSBC Insurance (Asia Pacific) Holdings Limited has obtained approval from Bank
Negara Malaysia to form a joint venture Takaful (Islamic insurance) company in
Malaysia in partnership with Jerneh Asia Berhad and The Employees Provident Fund
of Malaysia (EPF).

It is proposed that HSBC Insurance will take up 49 per cent of the equity in the
new company for a consideration of MYR49 million (approximately US$13 million).
Jerneh Asia will take a 31 per cent stake for MYR31 million and EPF will take 
20 per cent, injecting MYR20 million into the joint venture. The new company 
will be capitalised at MYR100 million (approximately US$26 million). It is 
expected to offer a range of life and general Takaful products to both retail 
and corporate customers.

Zarir J Cama, Deputy Chairman and Chief Executive Officer of HSBC Bank Malaysia
Berhad, said: "Through this licence to develop a Takaful joint venture with
Jerneh Asia and The Employees Provident Fund of Malaysia, we intend to build on
the success of the Islamic banking business HSBC Bank Malaysia has developed 
since 1994. We are excited about the growth opportunities offered by Malaysia's
Takaful industry, which has a low penetration rate of 5 per cent amid a
population that is 60 per cent Muslim."

The completion of the transaction is subject to various conditions including
obtaining regulatory and other approvals. The consideration from HSBC will be
satisfied from the HSBC Group's internal resources.


Notes to editors

1. Jerneh Asia Berhad

Jerneh Asia, through its 80 per cent-held Jerneh Insurance Berhad, is a leading
general insurance provider in Malaysia. Jerneh Insurance was established in 1970
and offers a wide range of general insurance cover for both commercial and
retail clients. With shareholders' funds standing at over RM100 million, today
Jerneh has the capacity to underwrite large projects in Malaysia, Singapore,
Indonesia, the Philippines, Myanmar, Thailand, the Hong Kong SAR, mainland China
and Australia.

2. The Employees Provident Fund of Malaysia

The Employees Provident Fund (EPF) of Malaysia is a national savings scheme,
providing basic financial security for retirement to private and non-pensionable
public sector employees in Malaysia. The EPF has over 5.2 million active members
and manages funds totalling RM253.6 billion. Established in October 1951, the
EPF continues to play a catalytic role in the nation's socio-economic growth,
consistent with its position as a leading savings institution in Malaysia.

3. HSBC in Malaysia

HSBC's presence in Malaysia dates back 121 years. The Group established its
first office in Malaysia in 1884 on the island of Penang, with privileges to
issue currency notes. HSBC Bank Malaysia Berhad was locally incorporated in 1994
and became the first foreign financial institution to be localised. HSBC Bank
Malaysia currently employs some 4,700 people and has a network of 36 branches.

4. The HSBC Group

HSBC Insurance (Asia Pacific) Holdings Limited and HSBC Bank Malaysia Berhad are
members of the HSBC Group which, with over 9,700 offices in 77 countries and
territories and assets of US$1,467 billion at 30 June 2005, is one of the
world's largest banking and financial services organisations.






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