UOB’s FDI advisory unit sets job creation as a KPI
The unit works closely with local partners and regional government trade agencies to ensure creation of right type of jobs
AT UOB’s foreign direct investment (FDI) advisory unit, success is measured by the number of jobs created from helping companies set up shop in Asia. With that in mind, the Singapore lender has set an ambitious goal of helping to create a million jobs.
Since its inception in 2011, the unit – which prides itself as a one-stop shop dedicated to helping companies set up operations in Asia – has supported more than 4,500 firms in their ambitions to expand regionally.
Last year alone, the figure stood at more than 500. The bank’s efforts have, in turn, translated into the creation of around 200,000 jobs since 2020.
The number (one million) does not just exist for the sake of it, said FDI advisory unit head Sam Cheong. He noted that the team is mindful that they are looking at the types of jobs the country wants and not just any job.
The team therefore works closely with partners such as government agencies and global human resource companies that help firms design talent strategies for their businesses overseas.
The way he sees it, doctors save lives, but bankers can create livelihoods.
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“We are not a social enterprise,” he said. The bank is, by his own admission, a commercial entity with income targets to hit. “But we believe there will still be a way for us to correlate doing social good (with) business.”
Beyond banking
The UOB unit currently operates 10 FDI centres across Asean and Asia, in the territories of Singapore, Malaysia, Indonesia, Thailand, Vietnam, Myanmar, China, Hong Kong, Japan and India.
Aside from the banking solutions offered by the bank, the FDI advisory team extends in-market insights and market-entry support to companies, be they small and medium-sized enterprises or large multinational corporations.
“When (companies) are expanding into new markets, the first thing they need is not to open a bank account,” said Cheong.
Rather, what they often seek is know-how on specific markets, such as which country they should invest in first, whether a nation has the right talent mix to support their business, or what the incentives offered by the state are.
The FDI advisory unit also fields questions on the legal systems in various countries, their tax incentives and policies, trade agreements in the region, whether companies should set up their regional headquarters in, say, Singapore and how they can manage risks.
Said the veteran banker: “These are all the pre-investment analyses that a company needs to conduct and we felt that if we are able to help them address some of these issues, we will have the first-mover advantage.”
The next challenge companies have is tapping local networks, and this is another area of expertise for the bank, with its almost 90 years of history operating in the region.
Cheong noted that UOB is the only bank in South-east Asia to have signed a memorandum of understanding with the China Council for the Promotion of International Trade.
The lender also works with local partners such as Singapore’s Economic Development Board, Enterprise Singapore and the Singapore Business Federation.
Other regional partners include government trade agencies such as the Malaysian Investment Development Authority, Thailand’s Board of Investment, Indonesia’s Investment Coordinating Board and Vietnam’s Foreign Investment Agency.
“As bankers, we must be able to connect them to the right networks, to the right business contacts, and to the right ecosystem,” noted Cheong. “With that in place, we are actually enhancing our value proposition to customers.”
Having all of these services offered under one roof is a big draw.
UOB aims for its FDI advisory unit to be a trusted adviser to companies, said Cheong. “They feel a lot of comfort because everything is done through you. It’s not a broker (or) an agent.”
Companies only start paying when they start banking with UOB, and it has been this way since day one, he added.
“People see that we are genuinely trying to help. We are a double-A-rated bank and we have many people to serve, but we think this is very meaningful. And by doing this additional value-add, we differentiate ourselves.”
Birth of the brainchild
Cheong’s lightbulb moment came around 2010, when there was a strong momentum of Chinese companies pivoting towards internationalisation and significant FDI movement towards South-east Asia.
The then-country head of corporate and commercial banking at UOB China – in his interactions with government agencies and Chinese companies looking to set up shop in Singapore – noticed the growing demand for expansion into the region.
Drawing on his learnings from an earlier stint in Indonesia and experience in China, Cheong – who recently marked 30 years at UOB, his sole employer – saw an opportunity for the bank to help companies bridge the gap and invest in the region.
Thus, UOB’s FDI advisory unit was born.
Bringing business to Asean
Ultimately, the vision is to connect the world to Asean, said Cheong.
Quoting the 2024 World Investment Report by the United Nations Conference on Trade and Development, he noted that South-east Asia recorded global FDI inflows of US$226 billion last year.
He added that the economic bloc’s share of global FDI flows almost trebled to 17 per cent since the inception of the Asean Economic Community in 2015.
“(Asean) is an oasis of openness, multilateralism and partnership, so we hope more and more companies come to Asean, leverage on Asean, and that’s where UOB hopes to be the connector.”
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