United Overseas Bank (UOB), Singapore’s third-largest lender, is targeting dominance in Southeast Asia’s trade financing sector, leveraging the region’s strategic advantage amid the US-China rift.
With trade flows worth $2 trillion, UOB plans to boost its market share from 1% to 5% by 2026, says Frederick Chin, head of group wholesale banking and markets.
As manufacturers adopt “China plus one” strategies, Southeast Asia is drawing more foreign investment than China, benefitting UOB. The bank’s wholesale banking arm achieved a record income of S$7.1 billion (US$5.5 billion) in 2023.
UOB aims to focus on big regional corporate clients, multinational companies, and SME suppliers, building a comprehensive business ecosystem. Key sectors include Malaysia’s semiconductors, Indonesia’s mining, Thailand’s automotive, and Vietnam’s electronics.
“Our strategy is all about connectivity,” Chin states, positioning UOB to capture foreign direct investment and facilitate regional trade flows.
Article by Jiaxin Li for SCMP. Read more here or in the PDF below.
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