Chinese companies are gaining more support to expand their businesses into Singapore and ASEAN markets.
On 27 April 2019, United Overseas Bank (UOB) and Singapore Exchange (SGX) signed a memorandum of understanding (MOU) with the China Chamber of International Commerce (CCOIC).
They agree to provide CCOIC’s 180,000 members with access to UOB’s banking expertise and SGX’s financing and risk management services.
Beyond this, the three organisations will offer support and advice on market entry and relevant regulations in ASEAN countries, and will jointly hold industry seminars to promote trade and investment between China and Singapore.
This new agreement adds on to the existing partnership between UOB and CCOIC, which has already helped increase Chinese companies entering ASEAN by 50% in 2018.
According to the bank’s Head of Foreign Direct Investment Advisory Unit Sam Cheong, China has invested close to US$90 billion in Southeast Asia, with almost half of that sum centred in Singapore.
He believes this is a “very strong message that Singapore is a very attractive hub for Chinese companies”, but it’s “not their end market”.
With their partnership, UOB, SGX and CCOIC expect to have even more Chinese companies center their overseas businesses in Singapore, from where they will export to ASEAN and even beyond.
Featured Image Credit: UOB / SGX