Singapore can serve as enterprise launchpad for China
By Jing Shuiyu | chinadaily.com.cn | Updated: 2019-04-30 16:54
Singaporean financial institutions and China's business association recently announced a collaboration to help Chinese enterprises use Singapore as a launchpad for overseas expansion.
The United Overseas Bank Limited, Singapore Exchange Limited and China Chamber of International Commerce signed a memorandum of understanding on Sunday to help Chinese firms further expand into ASEAN countries.
The tripartite alliance builds on UOB's existing collaboration with CCOIC to facilitate Chinese enterprises' internationalization efforts.
Sam Cheong, head of United Overseas Bank Group's foreign direct investment advisory unit, said further strengthening financial interconnectivity is important for enterprise expansion.
"Therefore, the three parties' partnership is committed to using Singapore as a launchpad to help enterprises to better expand their operations in the ASEAN countries," Cheong told reporters.
In 2018, UOB helped 50 percent more Chinese companies expand into ASEAN compared to 2017. This resulted in a 31 percent increase in cross-border business flows over the same period.
Under the new MoU, more than 180,000 Chinese enterprises under CCOIC can benefit from UOB's banking expertise and integrated ASEAN network, as well as from SGX's trusted capital market infrastructure and deep liquidity to venture into Singapore and Southeast Asia.
The three parties 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.
Chew Sutat, head of equities and fixed income at SGX, said Singapore is a leading bond issuance market in Asia and the scale of the country's secondary market is large. "The SGX can help Chinese companies to grow in Southeast Asia," he said at a press conference.
Yu Jianlong, secretary general of CCOIC, said the tripartite alliance will contribute to the strengthening of bilateral economic and trade relations and growing connectivity across the region.