UOB signs deals with four Shandong firms to support South-east Asia expansion
UOB has inked four agreements with Shandong enterprises to support their expansion efforts into South-east Asia.
This comes on the back of robust growth in economic ties between Singapore and East China’s Shandong province, according to latest available figures.
Shandong’s gross domestic product reached about 9.2 trillion yuan (S$1.7 trillion) last year, making it the third-largest province in China, behind onl Guangdong and Jiangsu.
Bilateral trade between Singapore and Shandong has been increasing at a compound annual growth rate of 25 per cent since 2020, totalling 39 billion yuan in the first half of 2024, according to figures provided by Enterprise Singapore.
On Thursday (Oct 10), UOB said that the first memorandum of understanding (MOU) with Hengfeng Bank renews both parties’ longstanding relationship and supports Shandong enterprises who are looking to expand into South-east Asia. UOB first signed an MOU with the commercial bank in 2020.
The renewed agreement reaffirms both parties’ collaboration across a range of business areas, including trade financing and investment banking.
A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
The other three new MOUs aim to boost foreign investment and trade between Shandong and South-east Asia.
As at August 2024, South-east Asia has become Shandong’s largest trading partner, with bilateral trade totalling 45.7 billion yuan, an increase of 10.3 per cent year on year.
UOB inked a tripartite MOU with Hengfeng Bank and Shandong Port. The latter is a state-owned enterprise which operates 20 major ports in Shandong.
Another tripartite MOU was signed with Hengfeng Bank and state-owned enterprise Shandong Marine, while the final MOU was inked with oil and natural gas refinement company Shandong Yulong Petrochemical.
UOB’s head of group commercial banking Eric Lian said that the bank sees “strong interest” from businesses in Shandong, a key economic province in China to enter the South-east Asia market.
“Our renewed collaboration with Hengfeng Bank and like-minded partners will enable Chinese companies to tap growth in the region,” he said.
On Wednesday, Singapore’s Transport Minister and Second Finance Minister Chee Hong Tat attended a conference where he reaffirmed the strong bilateral relations between Singapore and Shandong.
Chee, who is also co-chairman of the Singapore-Shandong Business Council (SSBC), said Shandong plays an important role in China’s economic development.
“Singapore companies are interested to explore opportunities in Shandong, while Shandong companies view Singapore as an attractive regional hub for expansion into the South-east Asia region and beyond,” he said.
“I encourage companies on both sides to leverage platforms such as the SSBC tocollaborate on new and broader avenues of growth, especially in the areas of the green economy, modern services, and trade and connectivity.”
Copyright SPH Media. All rights reserved.
