United Overseas Bank Limited (UOB), Singapore Exchange Limited (SGX) and the China Chamber of International Commerce (CCOIC) signed a memorandum of understanding (MOU) on April 27 in Beijing to help Chinese enterprises use Singapore as a launchpad to expand into the ASEAN region.
The MOU signing between the two Singaporean firms and the Chinese chamber of commerce was in conjunction with the second Belt and Road Forum in Beijing, which ended on that day, and was witnessed by Chan Chun Sing, Singapore’s minister for trade and industry, and Dr Koh Poh Koon, Singapore’s senior minister of state for trade and industry.
The tripartite alliance builds on UOB’s existing collaboration with CCOIC to facilitate Chinese enterprises’ internationalization efforts. In 2018, UOB saw an increase of 50 percent in the amount of Chinese companies that they helped expand into ASEAN compared with 2017. This support resulted in a 31 percent increase in cross-border business flows over the same period.
Under the MOU, more than 180,000 Chinese enterprises under CCOIC can benefit from UOB’s banking expertise and ASEAN network, as well as from SGX’s capital market infrastructure and deep liquidity, to venture into Singapore and Southeast Asia. UOB, SGX and CCOIC will help Chinese enterprises capitalize on Singapore’s debt and equity capital markets, as well as Singapore’s role as a regional treasury hub and global financing centre for foreign investments.
Each organization will provide assistance and advisory services in relation to market entry and corporate actions such as debt and equity listing and asset securitization. They will also provide support in their respective areas such as trade settlement, project financing, liquidity management, foreign exchange and derivatives transactions, and connect Chinese enterprises to potential business partners across ASEAN.
Wee Ee Cheong, deputy chairman and chief executive officer, UOB, says, “For enterprises seeking opportunities in ASEAN, we have been helping them navigate market complexities and offering financial and business support through our integrated network, strong knowledge of and experience in the local markets and our ecosystem of strategic partners. With the new MOU, the combined expertise and strengths of UOB, CCOIC and SGX will help enable the success of more companies in the region.”
Loh Boon Chye, chief executive officer, SGX, says, “SGX’s multi-asset fundraising, investment and risk management platforms, when placed together with UOB’s financial expertise and CCOIC’s extensive network in the Chinese business community, will add value to enterprises tapping on the growth opportunities led by China’s Belt and Road and environmental initiatives.”
Yu Jianlong, secretary general of CCOIC, says, “CCOIC has been actively working with international organisations to facilitate the overseas expansion of Chinese enterprises. We are pleased to form an alliance with two of Singapore’s leading financial institutions – SGX and UOB – to help Chinese enterprises access the country’s established financial market and stable business environment as a gateway for their ASEAN expansion.”
