Charting global growth: How a strategic partnership fast-tracked this company's expansion in Asean

DREAM Xu, 44, first arrived in Singapore a decade ago with one goal. As chief operating officer of Worldwide Logistics Group (WWL), his vision was to expand the company's footprint beyond China, expanding into international markets.

Starting with just a team of five people, the integrated logistics platform today boasts a robust workforce of 200 staff across Asean, and has offices in the seven key economies in the region.

Such growth did not come without challenges. For instance, basic infrastructure was lacking in many countries in South-east Asia, so WWL had to procure its own trucks and vessels in order to meet growing demand. Other issues included exchange rate fluctuations, dealing with different taxation systems and varying levels of government efficiency.

Undeterred, WWL pressed on with its expansion plans in the region. It set up its first international headquarters in Singapore in 2016. As Xu puts it: "Singapore is the most open and developed international trade and finance centre, and plays a very important role in our overseas business development."

Customised solutions for growth

Navigating the region's complex regulatory and financial landscape demanded a robust partner, one that understood not only Asean but also the Greater China landscape from which WWL hailed. They found that ideal ally in OCBC, whose "solid reputation, expansive regional network, technological prowess and personalised support" were aligned perfectly with the firm's needs, says Xu.

Notably, OCBC's profound presence in Greater China and its expertise have been pivotal in customising solutions for businesses like WWL that are aiming to bridge their operations between home and overseas markets. As WWL's business involves cross-border payments, the company is susceptible to currency volatility. OCBC's foreign currency solutions "effectively minimised WWL's exposure to exchange rate fluctuations, ensuring financial stability", says Xu.

To help the firm better manage cash flow in its early days, OCBC helped WWL in devising an accounts receivable financing package. This global cash management solution enabled WWL to collect money from customers in local currency and make payments to vendors in US dollars.

Unlocking efficiency through tech

Additionally, the bank's technological innovation played a pivotal role in WWL's treasury management. Prior to OCBC's solutions, WWL's bank accounts were independent, making it difficult to check across entities.

Through API system integration and financial reporting solutions, OCBC empowered WWL to streamline its financial processes across borders. Xu adds: "This not only improved our operational efficiency, but also enhanced our decision-making capabilities with real-time insights."

Roy Tan, head of Enterprise Banking International, Global Commercial Banking at OCBC, emphasises that systems are customised according to customers' needs. He says: "The team is actively involved in the entire solutioning journey to ensure that nothing is lost in translation."

Fostering connections and expanding networks

Beyond financial solutions, Xu notes that OCBC has provided WWL with valuable introductions as the company expanded its overseas branches and sought partnerships within Asia.

Just this August, he attended a networking dinner at Dempsey Hill organised by OCBC, which brought together 25 companies in the shipping and logistics sector. Over dinner, Xu connected with an associate working in a logistics business in India that later became a client of WWL.

Initiatives like the networking dinner, which engages key customers from the same industries to meet for potential business development and partnerships, underscore the bank's commitment to adding value beyond traditional banking services.

Bridging regional connections

In May this year, OCBC brought together industry frontrunners and investors at a networking event titled "One Connect Series: Chinese Tech in Indonesia". It wasn't just another business forum - the event paired 10 cutting-edge Chinese tech firms with 21 Indonesian companies from diverse sectors such as healthcare, green energy and digital fintech.

Among the attendees was Whale Tech, a software company specialising in artificial intelligence (AI)-driven solutions for retail.

Whale Tech's head of globalisation Lafee Wu says: "I had the opportunity to showcase our latest artificial technology to a select group of tech start-ups based in Singapore and high potential Indonesian companies. Organising this on our own would have been challenging without the support from OCBC."

With an expansive network of branches across Asean and Greater China, the bank aims to be a catalyst for innovation and collaboration across borders. Tan says: "Our initiatives, like the 'One Connect Series,' allow us to leverage this network for the benefit of our clients, turning aspirations into tangible business success, and offering opportunities to propel businesses to new heights on a global scale."

Seizing new opportunities

With the fourth wave of manufacturing gaining momentum in recent years, and more Chinese companies shifting operations to South-east Asia, WWL is enjoying an early-mover advantage as it moved to the region 10 years ago.

Over the past five years, the firm's revenue has grown almost 20 times, says Xu. Following this success, WWL went on to set up offices in Thailand, Vietnam and Indonesia over the past five years.

Tan, citing the China Plus One strategy, notes that more Chinese firms are heading this way as they diversify for greater supply chain resilience and greater collaboration with partners or customers in this part of the world.

Besides a lower cost of production, companies are also attracted by demographics in the region where there is a "highly digital young middle class, and huge adoption of e-commerce", he adds.

After securing a strong foothold in South-east Asia, WWL aims to enhance its presence in North America and Europe. That said, Xu noted that it is important for companies to have an international perspective and be prudent.

The importance of having the right banking partner cannot be overstated. Tan says: "When a customer decides to expand overseas in search of a new market, we value-add by helping them 'land' well. At each stage of growth, it is key for us to provide suitable solutions that match their aspirations and goals."

Find out more at www.ocbc.com/business-banking.